Franchise policy of Subwa

1. Shahbaz Alam
17MMBA008HY
MBA 3rd semester
Dr. Reshma Nikhat
Assistance Professor
Dep. Of Management
MANUU, Hyderabad 1

2. Topic to be Covered
1. Introduction
2. Company profile
3. Products
4. Franchise of Subway
5. Franchise requirement
6. Franchise Benefit of Subway
7. Other Strategies
8. Conclusion
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3. Introduction
Subway is an American privately held fast food
restaurant franchise that primarily sells
submarine sandwiches and salads.
Subway is one of the fastest-growing franchises in
the world and, as of June 2017, has
approximately 45,000 stores located in more
than 112 countries.
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4. Company Profile
 Industry Restaurants
 Genre Fast food
 Products Submarine sandwiches Pizzas Salads
 Founded August 28, 1965; 53 years ago,
Bridgeport, Connecticut, U.S.
 Founders Fred DeLuca Peter Buck
 Headquarters Milford, Connecticut, U.S.
 Number of locations 45000 restaurants in 112 countries
 Key people
CEO & President Suzanne Greco
Interim CEO Trevor Haynes
 Owner DeLuca family
 Slogan “ Eat Fresh ”
 Website subway.com
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5. Product
 Subway sells a large variety of substance.
 Subway also produces different breakfast items.
 At most subways you can also purchase salads, personal pizzas.
 Subway offers fountain drinks, chips cookies, apple slices, parfaits, coffee, juices,
and other drinks and side items.
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6. Franchise of Subway
After struggling the first few years, the company’s name was changed to
Subway and they began franchising in 1974.
Franchise Description:
The franchisor is Doctor Associates Inc , offers only qualified purchasers-
The right to establish and operate,
from a single location,
for retail establishment
and specially sandwiches, salads and other food items.
Additional franchise options include:
1. Traditional location :-
2. Non-traditional locations:- community development program locations,
school lunch program locations, airport terminal locations, theme park
locations, and national park locations. An Exclusive Area Development
Program is also available.
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7. Franchise requirements
Initial Investment
The initial investment required to open a Subway Franchise is estimated
between $116,000 and $263,000,
net worth requirement of $80,000-$310,000
liquid cash requirement of $30,000-$90,000.
Franchise Fee and Royalties
Subway charges an initial franchise fee of $15,000,
ongoing royalty fee of 8% of gross sales,
Ad Royalty fee of 4.5% of gross sales.
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8. Franchisee benefits of Subway
Training
2 Weeks training, available at headquarters. Training in Australia, China,
Germany, India, Montreal, Canada, and Miami FL. Milford, CT.
They are strongly recommend to work on any existing restaurant for 40
hours , perfect attendance , 80% of in class quizzes.
Support
Newsletter, Meetings, Toll-free phone line, Grand opening, Internet,
Security/safety procedures, Field operations/evaluations, Purchasing
cooperatives
Marketing
Co advertising, Ad slicks, National media, Regional advertising.
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9. Cont.......
Financial support
• Subway offers in-house financing to cover equipment, start-up, costs
Inventory For veterans,
• Subway waives the franchise fee if the franchise is opened on a
military/government location, a non-government location but with
government financing.
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10. Other Strategies
Market Penetration
Market penetration is a firm increases its share of a market in which it already operates
Market Development
This strategy involves finding new markets for the products a firm already makes.
Diversification
SUBWAY is going for real estate markets, mobile phone markets and some financial
markets to reduce their business risk through diversification.
Product Development
Improvement of products over time to maintain their competitive position. Product
development is one of the main marketing strategies of SUBWAY.
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11. Conclusion
The SUBWAY system is committed to
providing a wide range of great tasting,
healthier food choices while reducing our
environmental footprint and creating a
positive influence in the communities we
serve around the world.
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12. Reference
• https://www.thebalancesmb.com
• https://en.wikipedia.org
• https://www.slideserve.com
• https://www.slideshare.net
• https://www.franchisedirect.com/information
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