Active Franchising

Subway

In 1965, a little sub shop called Pete's Super Submarines opened in Bridgeport Connecticut. Then in 1974, Founders changed their name to Subway and began franchising. Today, Subway is the world's largest submarine sandwich restaurant serving hot and toasted subs, salads, wraps, and a kids menu. They also cater. Subway has been chosen as the number one franchise opportunity in North America several times by Entrepreneur magazine Franchise 500 rankings.

Subway has franchise locations throughout the United States, Canada, and can also be found in Australia and Japan an in several other countries, with locations in traditional and non traditional sites alike. Subway offers a fresh healthy alternative to fast-food restaurants.


Franchising Tips and Facts

Although the success rate for franchise-owned business is generally better than the success rate for many independent businesses, there is no franchise formula to guarantee victory. The same may also be said of the profits generated. Often the margins you make are a reflection of your ability to properly run your franchise, however you may be able to get a document from the franchisor that illustrates the typical franchise earnings. If the franchisor does not provide such a document, you should contact a number of franchisees in the market you are interested in and seek their advice on the business' profitability.

When considering a Subway franchise, try to understand why they are offering you the business in the first place. Very often, franchising is an extremely quick low-risk method of expanding a successful business across the world. As a franchisee, you take on the majority of financial risk. In return the franchisor is offering a successful business formula that has been proven to work. But before you go ahead, ask yourself whether the support, training, stock, experience and brand name justifies the investment asked.

Franchising is a way of doing business. It is a method and marketing tool for companies to expand their market share more rapidly and less expensively. Some companies, which are thought to be franchises, are in fact not franchises. All stores are owned and operated by the company itself Some examples of businesses that are not franchises are: Starbucks, Gap, Victoria's Secret.

Subway franchises offer the franchisee a license or right to sell its goods or services and/or use its business techniques. The franchisees usually pay an initial fee to acquire this right, and thereafter pay a percentage of their gross sales to the franchisor throughout the term of their franchise contract. In return for these payments, Subway franchisees gain priveleges, including the right to sell a proven and recognized product or service, to use the franchisor's business practices, and to receive initial training and ongoing support.

Please Note: Subway, and other franchise opportunities, business opportunities, businesses and franchises for sale on this web site are not to be considered as an "offering," suggestion or approval by ActiveFranchising.com. As always, we recommends seeking the advice of a lawyer, financial consultant or accountant before purchasing a franchise or business opportunity.