Buy Into Subway Franchise
According to the company, Subway has more locations worldwide than any other restaurant chain. As of 2023, there are about 37,000 locations spread across more than 100 countries."}},"@type": "Question","name": "Who Owns Subway?","acceptedAnswer": "@type": "Answer","text": "Subway, Inc. is owned and run by the DeLuca family. Subway was founded in 1965 by 17-year-old Fred DeLuca. Headquartered in Shelton, Connecticut, each Subway franchise is independently owned and operated. Because it is privately held and stores are owner-operated, Subway is not listed on a stock exchange.","@type": "Question","name": "What Is Subway's Most Popular Menu Item?","acceptedAnswer": "@type": "Answer","text": "The most popular sandwich varies depending on the country a Subway is in. In the U.S., the most popular menu item at Subway is often the turkey breast or tuna sandwich, or Italian B.M.T. In Australia and New Zealand, the Greek lamb with tzatziki comes in first, and the shrimp avocado sandwich in Japan. In the U.K., the Indian-inspired chicken tikka sub is the most popular."]}]}] Investing Stocks Bonds Fixed Income Mutual Funds ETFs Options 401(k) Roth IRA Fundamental Analysis Technical Analysis Markets View All Simulator Login / Portfolio Trade Research My Games Leaderboard Economy Government Policy Monetary Policy Fiscal Policy View All Personal Finance Financial Literacy Retirement Budgeting Saving Taxes Home Ownership View All News Markets Companies Earnings Economy Crypto Personal Finance Government View All Reviews Best Online Brokers Best Life Insurance Companies Best CD Rates Best Savings Accounts Best Personal Loans Best Credit Repair Companies Best Mortgage Rates Best Auto Loan Rates Best Credit Cards View All Academy Investing for Beginners Trading for Beginners Become a Day Trader Technical Analysis All Investing Courses All Trading Courses View All TradeSearchSearchPlease fill out this field.SearchSearchPlease fill out this field.InvestingInvesting Stocks Bonds Fixed Income Mutual Funds ETFs Options 401(k) Roth IRA Fundamental Analysis Technical Analysis Markets View All SimulatorSimulator Login / Portfolio Trade Research My Games Leaderboard EconomyEconomy Government Policy Monetary Policy Fiscal Policy View All Personal FinancePersonal Finance Financial Literacy Retirement Budgeting Saving Taxes Home Ownership View All NewsNews Markets Companies Earnings Economy Crypto Personal Finance Government View All ReviewsReviews Best Online Brokers Best Life Insurance Companies Best CD Rates Best Savings Accounts Best Personal Loans Best Credit Repair Companies Best Mortgage Rates Best Auto Loan Rates Best Credit Cards View All AcademyAcademy Investing for Beginners Trading for Beginners Become a Day Trader Technical Analysis All Investing Courses All Trading Courses View All Financial Terms Newsletter About Us Follow Us Facebook Instagram LinkedIn TikTok Twitter YouTube Table of ContentsExpandTable of ContentsSubway: An OverviewThe Cost of a Subway FranchiseSubway Franchising ProcedureSubway Franchise SalesSubway Franchise FAQsThe Bottom LineSmall BusinessHow to Start a BusinessThe Cost of Buying a Subway FranchiseByTK McDonaldFull BioTK McDonald has 13+ years of experience as a financial advisor for the U.S. Army. She is currently a writer for District Media.Learn about our editorial policiesUpdated January 15, 2023Reviewed byEric EstevezFact checked byTimothy Li Fact checked byTimothy LiFull Bio LinkedIn Timothy Li is a consultant, accountant, and finance manager with an MBA from USC and over 15 years of corporate finance experience. Timothy has helped provide CEOs and CFOs with deep-dive analytics, providing beautiful stories behind the numbers, graphs, and financial models.Learn about our editorial policiesMany entrepreneurs favor franchise ownership over starting unique businesses in the small business industry. With franchise ownership, franchisee entrepreneurs benefit from licensing an established business's procedures and processes from the franchisor. These licensing benefits give the business owner numerous advantages, including an association with an established business and the help of an already established branding strategy.
buy into subway franchise
Subway, Inc. is owned and run by the DeLuca family. Subway was founded in 1965 by 17-year-old Fred DeLuca. Headquartered in Shelton, Connecticut, each Subway franchise is independently owned and operated. Because it is privately held and stores are owner-operated, Subway is not listed on a stock exchange.
*According to the Subway franchising website, Subway restaurant franchises have some of the lowest start-up costs in the industry, which is one of the reasons a good number of people look into owning a Subway.
Wait: scratch that. There is one difference: Subway is a fast food franchise. And a lot of people who are interested in this huge brand have never worked in the fast food industry. Have you?
In other words, the food-service industry is a tough one. The hours are incredibly long, the human resource issues are super-frustrating, and most food franchisees find themselves working in the business, way more than they thought they would.
Remember what I said about The Rules-and that the franchise business model is a rule-based one? In this case, The Rules are the specific steps that all prospective Subway franchise owners have to go through.
3. Why do you want to know how much you can make as the owner of a Subway franchise? (Like it matters.) Kidding. One way to find out is to see how many Subway franchisees own more than one Subway store. (Lots.) Another way is to ask. Carefully.
Just do great research before you buy one. My top franchise research techniques along with the top questions to ask Subway franchise owners can be found in my powerful franchise research guide.
Another thing: In addition to going over your franchise agreement (and the FDD, of course), your attorney should be able to help you with your commercial lease once you secure a location. (Which is another complicated document!)
Fred DeLuca was only 17 when a family friend suggested he start a Subway sandwich shop to help pay for college. That friend became his partner by investing $1,000 in DeLuca's new venture. Today, that single store has turned into 28,000 stores in 86 countries. DeLuca managed that feat by offering franchises. Franchise kits are still available today,. A franchise fee will run you $15,000. Subway estimates a store can be started for as low as $78,000.
Request a Subway franchise kit through the website. The kit does not obligate you to open a store. It simply provides information on the steps to become a franchisee. Information in the kit covers such topics as skills needed to run a successful sub shop, costs to become a franchisee and available training.
Submit a franchise application.Complete the application by providing personal references, financial information, education, business experience, when you'd like to open your restaurant and where you'd like the restaurant to be located.
Finalize the franchise agreement. Read all disclosure statements. If you don;t understand something, seek the advice of legal counsel. Sign the paperwork to become a franchisee. The $15,000 franchise fee is due upon signing the contract.
Attend training. Once the application is approved and the franchise agreement signed, training can be completed. Subway's main training center is in Milford, Connecticut, but 12 training centers are located around the world. Subway also hosts trade shows worldwide that provide the opportunity to meet other restaurant owners, sample new items and attend seminars.
Find a location. Subway offers two options. If a franchisee in your area wants to sell, you can buy out the franchisee. Otherwise, you'll need to find a location in a high traffic area, such as a shopping mall. If choosing your own location, look for a store that has a small area for seating, space to make sandwiches and room in the back for prepping food and baking bread and cookies. Subway also offers non-traditional location options, which would include colleges, airports and even hotels.
From the income statement, we see that the franchisor made $634,329,000 in franchise royalties in 2020 and $ 834,117,000 in 2019. With an 8% royalty fee, we can calculate the estimated average gross sales for the 22,201 franchised outlets that were open in 2020.
Another difficulty with the Subway operator or Subway franchisee is that there is a high employee turnover. Like many other food services and food businesses, there is a lot of employee turnover. They work for a short period of time and then they leave. And then, as an owner or operator, you have to keep hiring people and constantly train them.
And one of the biggest problems for someone looking to make an investment in a Subway franchise is if they are a foreign national seeking and holding an E-2 , L-1 or EB-5 investor visa . Subway does not allow foreign nationals as franchisees in the U.S. The person must be a green card holder or be a U.S. citizen. Which means it is not even an option for someone seeking to obtain an investor visa such as the E-2, L-1 or EB-5. I hope you found this insightful. 041b061a72