Subway Franchise Review

Subway Franchise Review

There are currently over 29,000 Subway franchises located in over 85 different countries. It is unlikely that founder Fred DeLuca imagined having this many submarine sandwich shops back in 1965 when he opened his first location.

The History of the Subway Franchise

Fred DeLuca opened his first submarine sandwich shop in 1965 at the age of 17 with a $1,000 loan from partner (and family friend) Dr. Peter Buck. His first sandwich shop was named Pete’s Super Submarines. By 1974, the name had changed to Subway and the duo owned and operated 16 units throughout the state of Connecticut. Subway started franchising in 1974 with its first franchise unit in Wallingford, Connecticut.

How Much Does It Cost?

The estimated total investment to open a Subway franchise in the United States is between $101,000 and $285,000. This includes the complete investment in setting up a Subway franchise, and also operating expenses for the first three months. After opening, franchisees pay a royalty fee, which is 8% of their overall gross sales.

Training

The Subway training course is 2 weeks and teaches business concepts, methods of operation and basic management skills. The time is spent in a classroom and on-site at a local Subway franchise for a "hands-on" experience. At the end of the two weeks, each potential franchisee must pass an exam in order to become a Subway franchisee.

What We Like

Any business with a proven track record like Subway is usually a great investment. In the U.S., Subway serves about 2,800 sandwiches and salads every 60 seconds. Entrepreneur Magazine has ranked the Subway franchise the number one U.S. franchise 13 out of the last 17 years.

Subway Franchise Information

Business Established: 1965
Franchising Since: 1974
Total Investment: $101,000 to $285,000