Subway sells foot-long and other sandwiches, salads, and various food items from retail establishments. The franchise specializes in made-to-order submarine sandwiches with fresh ingredients and customizable options.
Key Insights
- Subway began as a vision to offer convenient and customizable sandwiches, evolving into a global presence with a focus on fresh ingredients and a simple preparation process. The business operates through a franchisee model, enabling individuals to own and manage their own sandwich shops.
- The franchise model is central to Subway's operation, allowing for widespread accessibility and local market adaptation. Franchisees are provided with established brand recognition, operational support, and supply chain management.
- Subway competes in the fast-casual dining sector, an industry characterized by its emphasis on quality ingredients and quick service. This market segment appeals to consumers seeking healthier and more personalized meal options.
Franchise Fee and Costs to Open
Exploring the financial picture of Subway gives insight into both the upfront commitment and the potential revenue opportunity. According to FDD Item 7, opening this franchise typically involves an investment in the range of $238,625 - $536,745, along with a franchise fee of $15,000 - $15,000.
Financial Performance and Revenue
Yearly gross sales of $490,000 and estimated earnings of $58,800 - $73,500 show the potential financial performance of this franchise. These figures are crucial for prospective franchisees as they help to project revenue and profitability. They offer insight into the business's ability to generate income and can be used to compare its performance against other investment opportunities. The Franchise Payback Period of 6.4-8.4 provides an estimation of the time it might take for an owner to recover their initial investment. This metric is a key consideration for anyone evaluating the financial viability of a franchise, as it relates directly to the speed at which the business can become profitable. A shorter payback period can indicate a faster return on capital, which is a significant factor in making an informed decision about a franchise investment.
Training and Resources
Subway provides comprehensive training for new franchisees. This initial program typically lasts two weeks and is conducted at a dedicated training facility. Subway offers a robust support system, including access to operational manuals and marketing materials. Franchisees are provided with resources to aid in store setup and ongoing business development.
Legal Considerations
Legal considerations for a Subway franchisee are outlined in the Franchise Disclosure Document (FDD) and the Franchise Agreement. Note that this franchise discloses lawsuits and/or bankruptcy information in its FDD, which may impact your evaluation. Subscribe now to access more details and be sure to consult a qualified attorney before proceeding.
Challenges and Risks
A franchisee may encounter considerations regarding local market saturation, requiring distinct strategies to attract and retain customers. The standardized operational procedures, while beneficial for consistency, necessitate meticulous attention to detail and staff training. Furthermore, adherence to the franchisor's approved supplier network introduces dependence on timely deliveries and product availability, impacting inventory management and service flow.
Franchise Datasheet
FAQs
What is the minimum cash required to open a Subway franchise?
How can I estimate the profitability and return on investment (ROI) of a Subway franchise?
What is the franchisee fee for a Subway franchise?
How to open a Subway franchise?
How many locations does Subway have?
Get insider access to franchise insights
Subscribe to receive expert tips, franchise rankings, and exclusive data straight to your inbox, trusted by thousands of aspiring business owners and investors.
Franchise resources & insights
Explore expert guides, data-driven articles, and tools to help you make smarter franchise decisions, whether you're just starting out or ready to invest.
