Business N Finance

The famous brand Subway is an international restaurant franchise that vends sandwiches and salads. The originators of this franchise were Fred De Luca and Peter Buck who created the restaurant in 1965. Subway is not the business name of the franchise it is Doctor’s Associates Inc or DAI. The company is truly international and is the world’s fastest growing franchise, with Franchises now greater than 27,000 in 85 different countries. The first franchise was launched in 1974 in Wallingford, Connecticut, USA.

The Franchises have positioned themselves as a healthier choice restaurant, which adds enormous market appeal in today’s health conscious society but much of the Franchises expansion is down to its unique business model. Unlike most Franchises, the parent company does not run any restaurants. The Franchise Opportunity is presented to home Franchises to manage the range of stores and Subway holds the contract to be their development agent for that location. The development agent, Subway, is then responsible for developing these existing and new locations, analysing the stores on a monthly basis and overall support for the range of Franchises in whatever struggles that may occur. The break down of percentages for the Franchise For Sale choices 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, help with the franchise cost for minorities and for existing owners the Franchise For Sale choice comprises of remodelling, relocation and expansion loans.

The Franchise Opportunity comes with obligatory requirements. Each franchisee must be present at a two week training course, this course teaches business concepts, methods of operation and essential management skills. The time for the training is broken up between the classroom and on site within a local Subway restaurant for work experience. After the training course each prospective franchisee must pass a comprehensive exam in order to become feasible for a Franchise Opportunity with Subway. As the Subway Franchise For Sale propositions are international there are training centres in the UK, USA, Australia, China, Canada, Germany, Korea, India, Lebanon and Russia, and as the Franchises are developing everywhere so will the training centres. Other courses on hand are for managers, multi owners of franchises, field consultants and development agents.

Like any franchise nothing is certain, an amount of effort and hard work will be required to build your first franchise and especially if you make a decision to own multiple Franchises. The initial investment is quite good and owning a Subway franchise will give you a high income if you choose the right location.

The speed at which the franchise is developing is remarkable and most recent figures show that Franchises are opening at about 1,000 per year internationally, this is a clear sign that this business model will continue to build and lead the market for a lot of years to come. Subway Franchises can be found across the world and with the right person at the right location a Franchise Opportunity is there for you.

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