How to Franchise: Subway
In this fast-paced day and age, people value food that can be easily brought around and eaten, such as sandwiches. At the same time, healthy living is becoming more appealing to a lot of people.
Are you interested to manage a business that has a good intersection between these two emerging trends? You might want to consider franchising a SUBWAY store!
Read below to learn more about the franchise investment you’ll need and the procedures you should undertake do in order to franchise Subway.
Subway began in 1965 as a shop for sandwiches with the intention of funding the medical studies of owner Fred DeLuca. He was loaned $1,000 by his friend and eventually business partner, Dr. Peter Buck to establish the first Subway store in August 1965 in Bridgeport, Connecticut.
The company was named SUBWAY because the primary product it sold (and still selling) was “submarine sandwiches” or “subs.”
In less than a decade, SUBWAY expanded and opened 16 branches in various places in Connecticut. It has since grown domestically and internationally. As of 2017, SUBWAY has around 45,000 branches in 100 countries worldwide. It is undeniably the biggest “submarine sandwich” chain in the world.
In terms of product offerings, SUBWAY offers the following in its menu:
- BLT (Bacon, Lettuce, and Tomato)
- Chicken Teriyaki
- Italian BMT
- Meatball Marinara
- Roast Beef
- Roasted Chicken Breast
- Sliced Chicken
- Sliced Chicken and Ham
- Spicy Italian
- Steak & Cheese
- Subway Club
- Subway Melt
- Veggie Delite
- Egg Mayo
Total Investment and Franchise Details
The franchise fee for a SUBWAY store in the Philippines ranges from $10,000 to $15,000.
According to Subway International B.V, the master franchisor of SUBWAY in the Philippines, the total franchise investment can reach $160,000. This investment, however, already includes:
- Franchise fee
- Store equipment – oven, chiller, menu board, counter
- Training expenditures
- Initial inventory
- Improvement of the location
Do note, still, that there are additional franchise costs including 12.5% of net sales payable to SUBWAY. This said fee is split between royalties (8%) and advertisements (4.5%).
Lastly, the length of a SUBWAY franchise agreement is for a period of 20 years.
Be guided by the following steps to make you one step closer to becoming a Subway franchisee:
- Fill out the form at https://www.subway.com/en-ph/ownafranchise/registeryourinterest to secure a copy of Subway’s franchising brochure, which contains more information regarding franchising.
- Complete and submit the application form at the official Subway website.
- Schedule a meeting with the Local Development Agent.
- Read the Franchise Disclosure Document to understand the terms and conditions of being a Subway Franchisee.
- Research on the feasibility of having a Subway franchise now that you are informed of the procedures and processes in the disclosure.
- Ensure that you are financially capable of running a Subway branch.
- Formally begin your franchise by signing the Franchise Agreement.
- Go to the training sessions.
- Look for a place for your branch and begin construction of the store.
- Open your branch.
The main application requirement is a duly accomplished application form, but be prepared with the following as well to ensure that you can finish the application procedure:
- Company profile – background information about the company and/or individuals who will manage the franchise, including list of owners, officers and directors, other businesses, etc.
- Expendable money for attending the training sessions
- A location to establish your franchise
Got any questions or clarifications regarding the Subway franchise? Contact Subway Philippines here:
Territory Manager – Philippines
5/F Unit E1 Electra House Building,
115-117 Esteban St., Legaspi Village,
Makati City 1229
Telephone Numbers: 843 – 6057,
Email: firstname.lastname@example.org; email@example.com
Interested in other franchising opportunities? Click to view our Complete list of Philippine companies available for Franchising
Information and Photo Sources: Subway Website (www.subway.com/en-ph); Subway Philippines Facebook Page (www.facebook.com/subwayphilippines); Philippine Franchising Association (www.pfa.webtogo.com.ph)
View Related Posts