Name: Arpit Kamlesh Parekh

Std : FYBCom Div: E Roll No. : 523

RETAIL FRACHISING SUBWAY
What is Franchising?
A form of business organization in which a firm which already has a successful product or
service (the franchisor) enters into a continuing contractual relationship with other businesses
(franchisees) operating under the franchisor's trade name and usually with the franchisor's
guidance, in exchange for a fee.


SUBWAY
Date of Incorporation: 1965
Franchising Since: 1974
The #1 Global Franchising Opportunity*
The worlds largest submarine sandwich shop - over 39,000 stores in over 99 countries
48 years experience serving great tasting subs
Low investment and simple operation
*SUBWAY

is the #1 restaurant chain in total restaurant count with more locations than any
other chain in the Quick Service Restaurant (QSR) industry.
Headquarters: Miami Springs, Florida
Business Description: Subway Restaurants sell foot-long and other sandwiches, salads, and
other food items from a retail store.
Franchise Offer: Subway offers qualified purchasers the right to establish and operate, from
a single location, a retail establishment preparing and selling foot-long and specialty
sandwiches, salads and other food items. Additional franchise options include: non-traditional
locations, satellite locations, community development program locations, school lunch
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program locations, airport terminal locations, theme park locations, and national park
locations. An Exclusive Area Development Program is also available.
Financial Assistance: Subway offers an equipment leasing program available to all
franchisees in the world, except those who own an existing restaurant that is not in
compliance with the Operations Manual. Subway deems the equipment lease to be a true
lease and not a financing lease. Subway offers to finance the initial franchise fee under its
minority loan program for qualified franchisees purchasing their first franchise at the full
franchise fee in the USA only. Subway also offers finance programs for leased space and
construction programs through Subway affiliates, and may loan money to franchisees in
connection with a Subway restaurant. In addition, Subway may guarantee a loan for a
franchisee in connection with a Subway restaurant. Subway may change or eliminate these
loan programs and equipment leasing program without any prior notice to franchisees.
Training and Assistance: All individuals who sign the Franchise Agreement must attend
and complete the Worldwide Training program at Subway headquarters to the franchisors
satisfaction. Perfect attendance and a grade of 80% on all pre-requisite web-based training
courses, in classroom quizzes and the final exam, as well as a passing grade on the in-store
component of the course are required to complete the training course to Subways
satisfaction. Franchisees will be notified when additional courses become required.
Territory: An exclusive territory will not be granted to the franchisee, unless the franchisee
is under the franchise agreement for an exclusive area development program.
Term of Agreement and Renewal: The length of the franchise term is 20 years, with the
exception of the School Lunch program with a term of 5 years. The franchise will
automatically renew for additional 20 year periods, unless either party chooses not to renew.
The renewal term for the School Lunch programs is 5 years. Subway has the right to refuse
renewal if the franchisee is not in full compliance.
Obligations and Restrictions: The franchisee is not obliged to personally supervise the
Subway restaurant, but they must attend and complete the training program. The person
designated to actively work in the restaurant as the Person in Charge must become certified
by completing the Person in Charge program. It is recommended that the franchisee devote a
substantial amount of time to the franchised business. The franchisee must operate the
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restaurant in strict compliance with all required methods, procedures, policies, standards, and
specifications of the Subway system in the Operations Manual and in other writings issued by
Subway.
Estimated Number of Units: 40,760
414 Restaurants in India
SUBWAY INVESTMENT DETAILS
Store Wise-Rs. 20lac - Rs. 30lac
What areas are available for Unit franchise? Nationwide
Where are you looking for expansion?
North New Delhi | Haryana | Himachal Pradesh | Punjab | Uttaranchal
West Gujarat | Rajasthan | Maharashtra | Goa
East Assam | Meghalaya | Mizoram | Tripura | Arunachal Pradesh | Manipur | Nagaland |
West Bengal | Sikkim | Orissa
South Kerala | Karnataka | Tamil Nadu
Central Chhattisgarh | Madhya Pradesh | Bihar | Jharkhand
Union Territories
Andaman & Nicobar | Pondicherry | Chandigarh | Lakshadweep | Daman and Diu
Is there exclusive territorial rights given to a unit franchise? No
Are any performance guarantees given to unit franchisee? No
What is the anticipated percentage return on investment? n/a
What is the likely payback period of capital for a unit franchise? n/a
Are there other investment requirements? 0
SUBWAY PROPERTY DETAILS
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What type of property is required for this franchise opportunity? leased or owned
Floor area requirement 500 .
Preferred location of unit franchised outlet: prominent location
SUBWAY TRAINING DETAILS
Do you currently have detailed operating manuals for franchisees? Yes
Where is franchisee training provided?
Is field assistance available for franchisee? Yes
Will someone from Head Office provides assistance to franchisee in opening the franchise?
Yes
What IT systems do you presently have that will be included in the franchise?
SUBWAY OTHER DETAILS
Do you have a standard franchise agreement? Yes
How long is the franchise term for? 20 years
Is the term renewable? Yes
SUBWAY FRANCHISE FAQS
1. Why should I join the Subway team?
Joining the SUBWAY team gives you the great opportunity to own your own business, but
not just any business, a proven business with a low investment, simple operations, flexible
floor plans, national and local support, national and regional advertising, a two week training
program, ongoing learning for our owners and their staff, store development assistance,
design support; lease negotiations, construction guidance and much, much more.
2. How much are the royalty and advertising fees?
SUBWAY Franchisees pay 12.5% every week (gross sales minus the sales tax); 8%
goes toward the franchise royalties and 4.5% goes towards advertising.
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3. How much does it cost to open a SUBWAY restaurant?
Each location is different and the initial investment varies depending on restaurant size, build
out costs, location, etc. For a better idea of the capital requirements,
4. How much money will I make?
Our employees, salespeople, or Development Agents are not permitted to furnish any oral or
written information concerning actual or potential sales. Actual results vary from restaurant
to restaurant and we cannot estimate the results of any particular franchise. We encourage
you to call SUBWAY Restaurant's large number of multi-unit owners to learn first-hand
why they decided to acquire additional franchises.
5. Is financing available?
There are a number of approved companies that can provide you with financing. Contact
them directly for more detailed information on their offerings.
6. What is a Development Agent?
A Development Agent (or DA) is a local, on-site representative of the SUBWAY concept.
Your DA will be your primary contact in your local area and will be able to provide local
support not only throughout the application process but continued support as you operate
your restaurant.
7. Will I receive training?
Absolutely! Training classes are held throughout the year. We have multiple training centres
located around the world, with the main training centre located in Milford, CT. You will be
assigned to a training centre based on your location and language preference.
8. I have heard that there is a Basic Skills test, what is that?
Your local Development office will direct you to take a two part test, focusing on English and
Math, which takes approximately one hour to complete. All newcomers to the SUBWAY
system are required to complete the test.
9. Who will build my restaurant?
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We will provide detailed blueprints from our Store Design team as well as recommended
contractors that other owners in the area have used. Nevertheless, you are responsible for
hiring a contractor to build your location.
10. Do I have to negotiate the lease for my location?
No. All leases are corporately held and you will receive a sublease.
11. Why do I have to order my supplies from your vendor?
We require all franchisees to order food from an approved food distributor. This ensures that
all SUBWAY restaurants have the best quality food while allowing maximum savings.
SUBWAY has an Independent Purchasing Cooperative (IPC). IPC is a franchisee-owned
and operated purchasing cooperative that negotiates the lowest costs for goods and services
while maintaining quality, standards and ensuring the best value for SUBWAY franchisees.
12. What is a Non-Traditional location?
A Non-Traditional Location is any location that is attached to, located within, or located on
the property of an existing business or facility. Most, or sometimes all, of its customers are
pulled from the host locations existing customer base. These locations can be semi-captive
or captive. Some examples include locations within airports, convenience stores, hospitals or
colleges.