SUBWAY FRANCHISE

Kaylie Means

BACKGROUND

Subway was established in 1965 by 17-year-old

Fred DeLuca and his friend Peter Buck.

Originally called Pete’s Super Submarines in

Bridgeport, Connecticut.

With only a $1,000 loan from Buck, Fred hoped to

earn enough to put himself through college.

FRANCHISING

After struggling the first few years, the company’s

name was changed to Subway and they began

franchising in 1974.

They offered healthy, fresh alternatives to fast-food

restaurants by providing salads, and healthy subs.

FRANCHISE UNITS

Subway has franchises throughout the U.S. and in

98 other countries.

Total of 37,003 locations

Year U.S. Canadian International

2012 25,090 2,798 9,115

2011 24,722 2,717 8,481

2010 23,411 2,542 7,235

2009 22,525 2,436 6,484

2008 21,685 2,355 5,572

FRANCHISE FEE

The franchising fee is $15,000.

The franchise term agreement is 20 years and is

renewable

65% of all franchisees own more than one unit and

needs 8-12 employees to run each franchise.

100% of current franchisees are owner/operator

owned.

FRANCHISEE REQUIREMENTS

2 Weeks training, available at headquarters. Training in

Australia, China, Germany, India, Montreal, Canada, and

Miami FL. Milford, CT.

Need to be a Franchisee Association Member and a

direct financial assistance.

Net Worth of $30,000 - $90,000

Liquid Cash Available $80,000 - $310,000

Total investment - $85,000 - $260,350