The Account Of Subway And How Their Franchise Company Has Become One The Worlds Quickest Growing Franchises.
The famous brand Subway is an international restaurant franchise that sells sandwiches and salads. The creators of this franchise were Fred De Luca and Peter Buck who developed the restaurant in 1965. Subway is not the corporate name of the franchise it is Doctor’s Associates Inc or DAI. The organisation is truly international and is the world’s fastest growing franchise, with Low Cost Franchises now greater than 27,000 in 85 different countries. The first franchise was opened in 1974 in Wallingford, Connecticut, USA.
The Franchises have positioned themselves as a healthier preference restaurant, which adds huge market interest in today’s health mindful society but much of the Low Cost Franchises increase is down to its unique business model. Unlike most Low Cost Franchises, the parent organisation does not manage any restaurants. The Franchise Opportunity is presented to local Low Cost Franchises to manage the range of stores and Subway holds the contract to be their development agent for that area. The development agent, Subway, is then responsible for growing these existing and new locations, examining the stores on a monthly basis and overall support for the range of Low Cost Franchises in whatever troubles that may occur. The break down of percentages for the Franchise For Sale options are broken down like this, 8% of sales at each site go to royalties, 4.5% of sales go into a holding called the Subway Franchisee Advertising Fund Trust or SFAFT, which is lead by a board of directors voted in by the franchisees. The Franchise Opportunity comprises of the leasing of equipment, support with the franchise cost for minorities and for existing owners the Franchise For Sale option comprises of remodelling, relocation and expansion loans.
The Franchise Opportunity comes with obligatory requirements. Each franchisee must go to a two week training course, this course teaches business concepts, methods of operation and basic management skills. The time for the training is divided between the classroom and on site within a neighbouring Subway restaurant for work experience. After the training course each potential franchisee must pass a comprehensive exam in order to become possible for a Franchise Opportunity with Subway. As the Subway Franchise For Sale offers are international there are training places in the UK, USA, Australia, China, Canada, Germany, Korea, India, Lebanon and Russia, and as the Low Cost Franchises are developing everywhere so will the training places. Other courses available are for managers, multi owners of franchises, field consultants and development agents.
Like any franchise nothing is definite, an amount of effort and hard work will be essential to develop your first franchise and especially if you decide to own multiple Low Cost Franchises. The early investment is quite good and owning a Subway franchise will give you a high income if you choose the correct location.
The speed at which the franchise is developing is remarkable and newest figures show that Low Cost Franchises are opening at about 1,000 per year internationally, this is a clear indication that this business model will continue to develop and lead the market for numerous years to come. Subway Low Cost Franchises can be found across the world and with the correct person at the correct location a Franchise Opportunity is there for you.
