Franchise for Subway - Essay Example

The site went on further to state that Subway is the undisputed leader in fast and healthy food because they offer easy-to-prepare sandwiches which are “made to order right in front of the customer - using freshly baked bread, select sauces and a variety of delicious toppings” (Doctor's Associates, Inc., 2011). And the third, very important reason is the continuous support network that it offers its franchisees. Subway’s support system includes training, product development, advertising, purchasing cooperatives and field support (Doctor's Associates, Inc., 2011).

The total investment in starting a Subway franchise is somewhere between $84,300 to $258,300. This amount includes the franchise fee, ongoing royalty fee, start-up cost, equipment, payroll and inventory (Entrepreneur Media, Inc., 2011). This means that a franchisee must also consider looking into the possible financing options open to him to fund the total investment to be made. Aside from these costs, business experience is needed to own a subway franchise. The manpower needed to run the franchise will be around six to ten employees. There should also be a total commitment from the franchisee because Subway does not allow absentee ownership and the terms of the agreement are for 20 years.