How an Individual goes About Becoming a Franchisee for Subway - Assignment Example

Subway is a franchise restaurant in America, which deals in the selling of salads and submarine sandwiches. Doctor’s Associates, Inc. (DAI) owns and operates this restaurant (Subway publication 1). This restaurant has been rated among the franchises that are growing at the fastest rate with 37,776 branches in over 100 countries worldwide (Subway publication 1). Subway headquarters are in Milford Connecticut with five regions supporting its internationally growing operations. Entrepreneurs who want to venture into subway restaurants will reap a financial reward because the restaurant is popular among those who are conscious about what they eat.

For any individual who is interested in venturing into this business, there are steps to follow, and this essay is a discussion of how an individual goes about becoming a franchisee with subway sandwich chain. To be a franchisee with subway sandwich chain, there are five key steps to follow. These steps include: researching the franchise market, making an online application, investigating about the subway brand, reviewing financial requirements, and joining the subway business. An entrepreneur will be required to research on the market of the recommended location by considering any potential competitor.

For instance, the franchisee to be has to evaluate the existence of other fast food restaurants or chains in the area. The entrepreneur should ensure that there is no subway branch or chain in his preferred location of operation. After ensuring all this is favorable, he or she should apply for franchising through online by filling the application form (Gail 1). The form should only be filled after reading through the binding contract and agreeing to the terms and conditions to avoid future case of disagreements.

Interested franchisees are also advised to engage solicitors in their financial discussions. Secondly, Entrepreneurs must have starting capital, which ranges from 101,000 US dollars to 285,000 US dollars. This is the recommended capital for US dwellers and setting (Gail 1). This capital caters for franchising fee and expenses for operation at least for the first three months. When one is seeking to know about the recommended starting capital, he or she has to be keen on the size of the food chain’s establishment, equipment, location, and the scale of operation.

After establishing a subway branch, entrepreneurs are supposed to offer quality services to clients while at the same time minimizing their operations cost. Entrepreneurs are also required to pay 8% annually to subway as a royalty fee from their gross sales (Guy 1). In return from the percentage the food giant gets, it will give its business franchisees manuals for operation, training programs, guidance of store design, accessibility to publications, guidance for equipment ordering, and leasing assistance.

Subway is a financial reward to entrepreneurs because it is cheap. The restaurant is cheap because it requires no extensive cooking hence the entrepreneurs will not purchase or invest in expensive cooking equipment like fryers and grills. As a result of the restaurant’s healthy eating habits, the business has expanded its market and the company does well when compared to other businesses of franchising.Work CitedGail, Schille. Subway in 'Family Guy' promotion. The Hollywood Reporter. 2007. Retrieved from .

Guy, Dennis. Subway sets out to torpedo McDonald’s. The Daily Telegraph. 2004. Retrieved from .  Subway Publication. Official SUBWAY Restaurants Web Sit. Official SUBWAY Restaurants Website. 2011. Retrieved from .