Subway Franchise Business Plan

However, Buck’s initial investment of $1,000 did pay off.

By 1974, the two men owned and operated 16 sandwich shops in its birthplace of Connecticut under Doctor’s Associates, Inc.

Subway listed more than 25,908 open locations in 2017, down from 27,129 in 2015, according to its Franchise Disclosure document.

A privately held company with headquarters in Milford, Conn., and regional offices around the globe, Subway does not publicly report financial results, but Forbes said it had $17 billion in sales in 2017, when it was listed as #92 on Forbes’ List of the World’s Most Valuable Brands.

(Starbucks is valued at $44,503 million and KFC trails Subway at $15,131.) Subway franchises don’t only exist in stand-alone restaurants.

The chain allows franchises to operate traditional stores, but franchisees also may open locations in gas stations, rest stops, hospitals, theme parks, and business complexes.Back in 2015, Forbes listed De Luca, the former president, and his co-founder and partner, Buck, as the 259th-richest Americans, each with about .5 billion. The death of Deluca in 2015 marked a turning point in the franchise’s leadership.A hands-on executive, according to The New York Times, De Luca ran the operations for decades, personally signed company checks, traveled across the country stopping at Subway restaurants incognito to sample the food and service and talk with franchise owners and customers.As a Subway franchisee, you are required to sell six-inch and foot-long specialty sandwiches, salads, wraps and other food items.You must also offer a breakfast menu that offers egg sandwiches, bacon, sausage, muffins, coffee and juice if you operate your franchise in the United States, according to Subway’s Franchise Disclosure Document.Originally named Pete’s Submarines (after his friend Dr.Peter Buck), the name had to change because it did not translate well over radio advertising.The Subway franchise has distinct specifications related to store set-up, menu, and marketing programs and regional development agents who run those programs and conduct inspections.The corporate office helps franchisees navigate: While franchisees benefit from a prescribed menu of products and services from the home office, some have experienced frustration related to pricing, store reputation, and saturation in the marketplace.The restaurant’s objective: to make it as easy as possible for customers to get food, according to a recent Forbes article.New menu items, bright menu boards and kiosks round out Subway’s new “Fresh Forward” design, according to QSR Magazine.


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