Is Subway a franchise? How much does a Subway franchise cost? Do you need info on Subway franchise price and fee to buy one?
Subway Fast food stores is arguably the largest food vendor in the United States of America. It began operations in 1965 when founders, Fred Deluca and Dr. Frederick Buck, teamed up to open the first restaurant in Bridgeport, Connecticut.
Since that inauspicious start, Subway Restaurants has since grown into an international chain, with over 40,000 stores doing business in over 110 countries around the world.
If you have a flair for cooking and can organize/coordinate teams of individuals to meet set targets and objectives, then purchasing a Subway Franchise could be the ideal career path for you.
Subway Franchise for Sale Opportunities
The Subway Franchise is actively on the lookout for focused and self-driven individuals and corporate bodies that can help Subway retain its dominant position as the largest fast food chain in the world. The structure of the Subway franchise can be summarized as follows:
How can you Become a Subway Franchisee?
The first step on the journey of becoming a franchisee with Subway is to fill out an application form. This form can be accessed at https://subapps1.subway.com/AdditionalInfoApp/index.aspx.
Once this form is submitted, you will receive a Franchise Disclosure Document which you are expected to read and understand. You will also be required to pass a basics skill test, after which you will be scheduled for an interview with the franchise board, to determine your eligibility/suitability in becoming a franchisee.
Subway Franchise Training Opportunity
Subway Restaurants takes the training of her franchisees very importantly. So, you will be required to undergo a training/internship period of two weeks; comprising spending a week in class and another week for in-store training.
The in-store training will be carried out at the Subway Global Headquarters, which is a precursor to your opening your franchise store.
How much does it cost to open a subway? Subway prides herself on being amongst the most affordable franchise chains in the world. Acquiring a franchise will cost 15,000 USD. If you plan to purchase additional stores or franchisees, you will be required to pay 7,500 USD for each additional store.
In order to keep up to the high standards expected of a Subway Franchisee, you will be expected to make a total investment ranging from 115,000 to 200,000 USD for either a traditional or non-traditional location. This investment figure covers your franchise fee, store construction costs, equipment procurement as well as running capital.
How long can you Operate a Subway Franchise?
Upon your payment of 15,000 USD, you will be eligible to run the franchise for the next twenty years. Upon expiration of the first twenty years, you can apply to secure another term at no extra charge.
What are the Other Financial Obligations of a Subway Franchise?
In addition to paying the franchise fee of 15,000 USD, you will be required to contribute your quota to the Headquarters’ corporate pool. This will see you pay 8% of your weekly sales as Royalty dues and 4.5% of your gross sales to the Advertising corporate fund.
How much can you make as a Franchisee with Subway Franchise?
The Subway franchise structure provides you with the resources and structure you will need to succeed in your franchise business. In order to have an idea what expected returns you can make on your investment, you are encouraged to contact existing franchisees in the Franchise document and enquire about their experiences and other questions, including financial.
Subway Franchise Financing Option
You can have access to the required funding you need through the assistance of third party financiers that have worked with Subway franchises over the years.
This financial facility can also assist you in securing your store location as well as acquiring the equipment and other tools that you may need to start your business.
As a rule of thumb, franchisees are advised to access a financial facility that should be no more that 40% of the total investment needed to start the franchise. This is to avoid being over-burdened with repayment plans.
How to Purchase a Subway Franchise for Sale?
SubWay permits the sale and purchase of existing Subway franchises across the USA and the world. For starters, if your desire to purchase an existing franchise, you will have to pass all the rudimentary obligations of becoming a part of the Subway Franchise family. This will include undergoing the 2-week training program at the Subway Headquarters.
The owner of the franchise put up for sale will have to update all financial records with the Head office, including providing documents showing recent contributions/payments such as the Royalty and Advertising fees.
The Subway head office will conduct due diligence to ensure that all parties play their expected roles, in order to ensure that there is a smooth handover of ownership and operations from the outgoing to the incoming franchisee management.
The issues that will also be addressed include retaining members of staff as well as other incident matters.
Owning a Subway franchise for sale is a great way to acquire the skills and conditioning needed to succeed not only as Subway franchisee but at any other business. You will be required to have a hands-on approach for the day-to-day running of the business, while building your team and delegating responsibilities and duties.