Franchising Opportunities: A Deep Dive into Subway

Are you deciding to go into the franchising business? How do you know which business you should go into?

Let us help you decide…

INDUSTRY STATISTICS, MARKET SHARE, PROSPECTS AND GROWTH OPPORTUNITIES

Subway belongs to the sandwich and sub store franchise industry which has managed to be eminent for the past five years during the US economic recovery. It stood at fifth place in an industry that averaged some P22 billion total revenues with an annual growth rate of 2.4% for the past 10 years and employed 518,888 people from a total of 26, 740 businesses.

This industry has kept the consumers’ appetites satisfied, having developed new menu options that took advantage of the market’s preference for a low-fat diet. It also grew by introducing products

The average franchisee fee ranges from $25,000 -$35,000, although some franchise fees can go well over $100,000, as in the case of what’s called a Master Franchise. In a Master Franchise, one buys the rights to an entire area, and it’s usually based on population.

The royalties are usually based on a % of gross sales. Royalties range anywhere from 4%, all the way up to 9%. Some franchisors charge a flat monthly royalty fee.

In addition to royalties, franchisees usually pay into a national monthly advertising/marketing fund, which amounts to 1-2% of gross sales. 639

WHY GO INTO THE CAR WASH BUSINESS INSTEAD OF SUBWAY AND SANDWICH INDUSTRY?

In summary, if you want to go into the franchise business and if you happen to be:

1) Environment-friendly and is into preserving nature’s resources, such as water, because it uses only 2 gallons of water to clean 15 vehicles;

2) Wants to be part of an industry with a lot of potential growth;

3) Prefer affordable entry fees/initial investment; low costs or almost nothing when it comes to royalty/advertising