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The famous brand Subway is an international restaurant franchise that vends sandwiches and salads. The creators of this franchise were Fred De Luca and Peter Buck who developed the restaurant in 1965. Subway is not the corporate name of the franchise it is Doctor’s Associates Inc or DAI. The organisation is truly international and is the world’s fastest growing franchise, with Franchises now beyond than 27,000 in 85 different countries. The 1st franchise was launched in 1974 in Wallingford, Connecticut, USA.

The Franchises have positioned themselves as a healthier option restaurant, which adds huge market appeal in today’s health mindful society but much of the Franchises expansion is down to its distinctive business model. Unlike most Franchises, the parent organisation does not operate any restaurants. The Franchise Opportunity is given to local Franchises to manage the various stores and Subway holds the contract to be their development agent for that area. The development agent, Subway, is then responsible for developing these existing and new locations, analysing the stores on a monthly basis and overall support for the various Franchises in whatever struggles that may occur. The break down of percentages for the Franchise For Sale preferences are broken down like this, 8% of sales at each franchise go to royalties, 4.5% of sales go into a holding called the Subway Franchisee Advertising Fund Trust or SFAFT, which is run by a board of directors voted in by the franchisees. The Franchise Opportunity contains the leasing of equipment, help with the franchise fee for minorities and for existing owners the Franchise For Sale opportunity contains remodelling, relocation and expansion loans.

The Franchise Opportunity comes with obligatory requirements. Each franchisee must go to a two week training course, this course trains in business concepts, methods of operation and essential management skills. The time for the training is divided between the classroom and on site within a local Subway restaurant for work experience. After the training course each potential franchisee must pass a comprehensive exam in order to become possible for a Franchise Opportunity with Subway. As the Subway Franchise For Sale deals are international there are training centres in the UK, USA, Australia, China, Canada, Germany, Korea, India, Lebanon and Russia, and as the Franchises are growing everywhere so will the training centres. Other courses available are for managers, multi owners of franchises, field consultants and development agents.

Like any franchise nothing is certain, an amount of effort and hard work will be required to build your 1st franchise and especially if you make a decision to own multiple Franchises. The early investment is quite good and owning a Subway franchise will give you a high income if you choose the correct location.

The speed at which the franchise is growing is remarkable and latest figures show that Franchises are opening at about 1,000 per year internationally, this is a clear sign that this business model will continue to build and lead the market for many years to come. Subway Franchises can be found across the world and with the correct person at the correct location a Franchise Opportunity is there for you.

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2 Responses to “The History Of Subway And How Their Franchise Organisation Has Turned Out To Be One The Worlds Major Growing Franchises.”

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