THE YELLOW SUBMARINE
Initial fee: | $15,000 |
Royalty fee: | 8% |
Total investment: | $116,000 - 300,000 |
Term of agreement: | 20 years, renewable |
Branch: | Food: Quick Service Restaurant |
Today, the SUBWAY brand is the world's largest submarine sandwich chain with more than 38,000 locations in 100 countries around the world.
Headquartered in Milford, Connecticut, and with regional offices in Amsterdam, Beirut, Brisbane, Miami and Singapore, the SUBWAY® brand was co-founded by Fred DeLuca and Dr. Peter Buck in 1965, and the first franchise restaurant opened in 1974.
Quick-service restaurant segment is one of three franchise business categories (commercial and residential services and retail food are the other two), out of 10 in all, expected to increase its sales in the coming years. SUBWAY’s sandwiches are so popular, that the restaurant serves nearly 2,800 sandwiches and salads every minute and the total length of all sandwiches sold in a year, would wrap around the Earth over 6 times. That’s a lot!
Joining the SUBWAY family gives entrepreneurs an opportunity to provide a known product from a renowned brand. In return of low investment, each franchisee receives a proven business model and all the necessary assistance during the term of the contract, to build and manage a restaurant - from national and regional advertising, training of owners and their staff, store development, design support; lease negotiations to all other questions that may arise.
About 70% of SUBWAY franchises are purchased by existing franchisees due to the greater return on the investment compared to other QSR chains.