subway franchise business plan pdf

How To Write a Business Plan for Subway Franchisee in 9 Steps: Checklist

By henry sheykin, resources on subway franchisee.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan
• Bundle Business Plan & Fin Model

If you're considering owning a Subway franchise , you're in good company. According to a recent report by Franchise Direct, Subway is the world's largest submarine sandwich chain with over 43,000 locations in more than 100 countries.

But how do you write a business plan to become a Subway franchisee? In this post, we'll take you through a 9-step checklist to help you get started.

From conducting market research to attending franchise seminars, this guide will help aspiring franchisees navigate the process of owning a Subway restaurant successfully.

So, whether you're an established business owner, first-time entrepreneur, or someone looking for a career change, this guide will equip you with the tools and support you need to turn your Subway franchise dreams into a reality.

Conduct Market Research

Market research involves collecting and analyzing data about a particular market, including its potential customers, competitors, and industry trends. It is the first step towards developing a solid business plan for a Subway franchisee. Before investing your time and money into opening a Subway restaurant, you need to conduct thorough market research to ensure that there is a demand for the product and that it aligns with your goals and objectives.

Market research helps you identify your target market, their preferences, and purchasing behavior. You will also discover the current trends and opportunities in the fast-food industry that will help you stay ahead of the competition.

The following are steps to follow when conducting market research for Subway franchisee:

• Identify the geographic area where you want to open the restaurant.
• Use online tools like Google Trends to research the popularity of sub sandwiches in your area.
• Visit other Subway restaurants within your area to evaluate the competition, prices, and customer service.
• Read industry publications and government reports to keep up with the latest trends, regulations, and issues affecting the fast-food industry.
• Conduct surveys, focus groups, or interviews with potential customers to gather firsthand insights on their preferences, needs, and attitudes towards Subway restaurants.

By conducting market research, you will get a better understanding of the fast food industry and the demand for sub sandwiches in your area. You will also be able to identify the strengths and weaknesses of your competitors, which will help you come up with strategies that will enable you to stand out in the market.

Develop A Business Concept

Once you have conducted your market research, it's time to develop a solid business concept . Your business concept should be unique and different from other Subway restaurants in your area. You want to stand out and offer something that will attract customers to your restaurant.

To create a strong business concept, it's important to clearly define your target audience, menu, and branding. Your target audience will dictate your menu offerings and marketing strategies. Make sure you consider dietary restrictions, cultural preferences, and local trends when developing your menu. Your branding should also be tailored to your target audience and reflect your restaurant's values and mission.

• Think about what makes your Subway restaurant unique and how it can stand out from competitors in the area.
• Consider the local community and their preferences when developing your menu.
• Think about your branding and how it can appeal to your target audience.
• Stay true to your restaurant's values and mission, and make sure they are reflected in your business concept.

It's also important to have a clear understanding of your restaurant's values and mission. Your values and mission will guide your decision-making and ensure that your restaurant stays true to its purpose. Make sure you communicate your restaurant's values and mission to your staff and customers.

Once you have developed your business concept, test it out by conducting market research and getting feedback from potential customers. This will help you refine your concept and make sure it's truly unique and appealing to your target audience.

Having a strong business concept is crucial for the success of your Subway franchise. It will guide your decision-making and ensure that your restaurant stays true to its purpose. Take the time to carefully develop and refine your business concept before moving on to the next steps of opening your franchise.

Assess Your Financial Situation

Before embarking on a Subway franchisee opportunity, it is essential to assess your financial situation honestly. Starting any business venture requires a lot of capital, and owning a Subway franchisee is no exception. You must have a clear picture of your financial status to determine if you have enough funds to start and sustain the business.

• Calculate Your Start-Up Capital: The cost of starting a Subway franchisee can range from $114,000 to $258,000. This amount covers the expenses necessary for opening a new location. It includes a franchise fee, rent, equipment, supplies, and training costs. Make sure to have enough funds to cover these expenses.
• Determine Your Ongoing Commitments: Running a successful Subway franchisee involves ongoing expenses, such as staff salaries, food supplies, rent, and utilities. You will need to track your costs, estimate your profits, and plan for any unexpected expenses.
• Consider Your Income and Savings: Determine how much of your savings you can afford to invest in a Subway franchisee. You should also consider your current income and the potential income from the franchisee. It will help you ensure that you can make ends meet while growing your business.
• Don't invest all your life savings in the business; keep some funds in case of an emergency.
• You may need to consider taking out a loan or other financing options to cover the start-up cost.
• Maintain a financial cushion to cover unexpected expenses

Assessing your financial situation is a crucial step when considering owning a Subway franchisee. You must have a clear picture of your finances and expenses to determine if you can meet the requirements. The key is to plan and manage your funds efficiently in the initial stage of the business to achieve long-term success.

Choose A Location

One of the most important steps in becoming a Subway Franchisee is choosing the right location for your restaurant. The location of your restaurant can make or break your business, so it's critical to choose carefully .

When considering potential locations, you should first research the area you're interested in. Look for areas with high foot traffic, such as shopping centers, busy streets, and other popular areas. You should also consider the surrounding businesses, as being near complementary businesses can help drive traffic to your restaurant.

• Consider the demographics of the area, including income level, age, and interests.
• Do a thorough assessment of the competition in the area.
• Check local zoning laws and regulations to ensure your restaurant will be in compliance.

Once you've identified potential locations, it's important to visit each site in person to get a feel for the area. Look for things like accessibility, parking, and overall attractiveness. Additionally, you should research the landlord or property owner to ensure they have a good reputation and a track record of success.

After considering all of these factors, you should compile a list of potential locations and present them to Subway's real estate team. They will review each location and provide feedback to help you make the best choice for your restaurant.

• Don't rush your decision. Take your time to make sure you're choosing the best location for your business.
• Consider hiring a real estate professional to help you find and evaluate potential locations.
• Be willing to compromise on certain factors in order to find the best overall location.

By following these tips and using your best judgement, you can choose a location that will set your Subway franchise up for success.

Secure Financing

One of the most important steps in becoming a Subway Franchisee is securing financing. Most traditional sources of financing, such as banks and credit unions, offer loans to prospective franchisees, but you may also consider securing financing through alternative channels.

Before applying for financing, it's important to do your research. Be sure to review the costs associated with opening and operating a Subway franchise, such as the franchise fee, rent, equipment, and inventory costs. Take the time to review your personal finances as well to ensure that you are able to meet the financial requirements associated with securing financing for a Subway franchise.

Here are some tips on how to secure financing for your Subway franchise:

• Create a solid business plan. Lenders want to see that you have a well-thought-out plan for your Subway franchise and that you have a strong understanding of the market and competition.
• Consider alternative sources of financing. Don't limit yourself to traditional bank loans, explore options such as microloans, crowdfunding, or even borrowing from friends and family.
• Work with a franchise financing specialist. These financing specialists have experience working with Subway franchisees and can help you navigate the financing process.
• Prepare a great loan application. When applying for financing, it's important to be organized and thorough. Be sure to have all of the necessary documents and information ready to present to lenders.

Once you've decided on the best financing option for your Subway franchise, it's important to apply as soon as possible. The application process can be lengthy, so it's important to give yourself plenty of time to gather all of the necessary documents and meet with lenders.

Remember that securing financing is just one step in becoming a Subway Franchisee. It's important to continue to work hard and follow the Subway system to ensure your franchise's success.

Gather Necessary Documents

Before becoming a Subway franchisee, you will need to gather all the necessary documents to ensure everything is in order. This will help you avoid any delays in the process and make sure that everything is properly organized. Here are some of the documents you will need to gather:

• Personal Identification Documents: The first set of documents you will need to gather are your personal identification documents, which include your birth certificate, passport, and social security card.
• Financial Documents: You will also need to provide proof of your financial situation , including bank statements, credit reports, tax returns, and net worth statements. This will help determine your eligibility for financing and provide a clear picture of your financial standing.
• Business Plan: Your business plan is another crucial document that you will need to gather. This will outline your business goals, strategies, and how you plan to make your Subway franchise a profitable venture.
• Franchise Disclosure Document: You will also need to review the Franchise Disclosure Document (FDD), which provides information about the franchise system, fees, and other important details. Make sure to read and understand the document thoroughly before signing the franchise agreement.
• Lease Agreements: If you have already secured a location for your Subway franchise, you will need to gather the lease agreements for the property. This will help ensure that you have a lease in place when you sign the franchise agreement.
• Make sure all your documents are properly organized and easily accessible.
• Keep a copy of all documents for your records.
• Review all documents carefully and seek professional advice if necessary.

By gathering all the necessary documents, you can ensure that your Subway franchisee application process goes smoothly. This will also give you the confidence you need to move forward with your new business venture.

Attend A Franchise Seminar

Attending a franchise seminar is an important step for anyone interested in becoming a Subway Franchisee. These seminars provide a comprehensive overview of what it takes to start and operate a successful Subway restaurant.

• Do your research ahead of time on the seminar's agenda to come prepared with any questions you may have.
• Engage with other potential franchisees to learn more about their experience and ask about any challenges they've faced.
• Take notes throughout the seminar to refer back to during later stages of the franchise process.

During the seminar, expect to learn about the company's history, core values, and expectations for its franchisees. You will also receive information about the financial requirements to become a franchisee, the support you can expect to receive from Subway's corporate team, and the steps involved in selecting and opening a restaurant location.

Attending a franchise seminar is a chance to meet the Subway franchise team face-to-face, so be prepared to ask any questions you have about the process. Consider asking questions about what qualities the company looks for in its franchisees, how it supports its franchisees once they've opened their restaurants, and its approach to marketing and advertising.

If you are serious about becoming a Subway franchisee, attending a franchise seminar is a must. It will provide you with a wealth of information about the franchise opportunity, allow you to meet the Subway team in person, and give you the chance to ask questions and interact with other potential franchisees.

Sign The Franchise Agreement

Once you have gone through the franchise seminar and attended the necessary training sessions, it is time to sign the franchise agreement. This document is important since it outlines the terms and conditions of your partnership with Subway and the obligations that come with being a Subway franchisee.

Before signing the agreement, it is important to review it carefully to ensure that you understand all the terms. Seek legal counsel if necessary to help you understand the legal implications of the document.

If there are any clauses that you find unclear or that you disagree with , do not hesitate to raise them with the franchisor and seek clarity or modifications.

• Take your time reviewing the agreement. A franchise agreement is a legal document and requires proper attention to detail.
• Get professional help to review the legal language of the agreement.
• Remember that the franchise agreement is a partnership with Subway. Ensure that you agree with the obligations stipulated in the document.

Once you are satisfied with the terms, sign the agreement and attend to any other requirements that may be requested.

After signing, both you and the franchisor will have obligations that you are required to fulfill . You will need to pay royalties, submit regular reports, and comply with the brand standards set by Subway, among others.

Signing the franchise agreement is a major step towards becoming a Subway franchisee. It is therefore important to ensure that all parties involved have a common understanding of the expectations and that the partnership is based on a solid foundation.

Attend Training Sessions

Once you have signed the franchise agreement, the next step is to attend training sessions. It is essential to attend these sessions as they are designed to equip you with all the knowledge and skills necessary to operate a successful Subway restaurant. The training sessions cover a variety of topics, including:

• Inventory management
• Customer service
• Staff management

The training sessions are typically held at the Subway training center, where you will meet other franchisees and network with industry professionals. You may also have the opportunity to participate in hands-on training at one of the Subway restaurants to get a better understanding of how the business operates.

• Take notes during the training sessions: The training sessions cover essential information that you will need to reference later. It is essential to take detailed notes to ensure you retain the information.
• Ask questions: Don't be afraid to ask questions during the training sessions. The trainers are there to help you succeed, and they will be more than happy to help you.
• Network with other franchisees: Attendees come from different backgrounds and experiences. Use this opportunity to learn from other franchisees by asking questions and sharing ideas.

It is important to note that the training sessions are not just a one-time occurrence. Subway offers ongoing training and support to help you stay up-to-date with the latest industry trends and best practices. The company also provides online training modules and resources that you can access at any time to refresh your knowledge and skills.

By attending the training sessions and taking advantage of Subway's ongoing training and support, you will be well-equipped to run a successful Subway restaurant and achieve your business goals.

Opening a Subway Franchisee requires careful planning and preparation. By following these 9 steps, potential Franchisees can create a solid business plan and increase their chances of success.

• Conduct market research
• Develop a business concept
• Assess your financial situation
• Choose a location
• Secure financing
• Gather necessary documents
• Attend a franchise seminar
• Sign the franchise agreement
• Attend training sessions

With the right resources and support, owning a Subway restaurant can be a lucrative and rewarding opportunity for entrepreneurs.

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YOUR PATH TO OWNERSHIP

Starts here, is subway right for you.

We're looking for seasoned franchise owners to expand their portfolio.

Leadership Team

SHARED Values

Financial Requirements

This isn’t your first rodeo..

You currently own other restaurants or franchises or have done so in the past. You can hit the ground running with multiple units and have the know-how to handle situations as they arise.

You’re ready to lead from day one.

Opening multiple units requires an entrepreneurial spirit, a growth mindset, and strong leadership skills. But that’s not all. You need a strong support team in place that is ready to rock and roll. Does that sound like you?

We’re on the same page.

We’re bold, empowered, accountable, and fun. We work hard. We take pride in our restaurants, communities, and families. These core values guide everything we do at Subway. They are important to us and hopefully important to you.

You have the financial backing to move forward.

We’re looking for financially healthy, well-capitalized candidates who can purchase multiple units and have the liquidity to get them up and running effectively.

Follow this path to become a franchise owner.

Inquire and research.

First things first. Fill out the short online questionnaire to inquire and initiate the conversation. Once qualified, you’ll get the Franchise Disclosure Document (FDD) and other resources to help inform your research and planning.

Connect and Apply

It’s time to get to know each other during this mutual discovery process. Connect with an experienced member of the franchising team so we can complete the due diligence process together before you submit your formal application.

Time to Select Restaurant Locations

Work with our site team to identify potential locations for Subway restaurants that work best for your franchise portfolio.

Congratulations! It’s Official

After successfully completing your candidacy process, you’re awarded your Subway franchise. We’ll toast to the future and to building a great partnership together.

Build Out Your Restaurants

Whether acquiring, remodeling, or building new restaurants, you’ll work with our seasoned design and construction teams to give your locations the latest modern decor

Training is Key

You and your management team will attend a 3-week University of Subway online training course so you can deliver excellent guest experiences, every time.

It’s Opening Day

Cut that ribbon and welcome guests to your Subway. Our veteran  operations team will be there to support you all along the way.

HAVE QUESTIONS?

We're here for you.

Come grow with us.

Explore the path to owning Subway Restaurants.

Subway Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their Subway companies.

If you’re unfamiliar with creating a Subway business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a Subway business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Subway Business Plan?

A business plan provides a snapshot of your Subway business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Subway Franchise

If you’re looking to start a Subway business or grow your existing Subway company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your Subway business to improve your chances of success. Your Subway business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Subway Businesses

With regard to funding, the main sources of funding for a Subway business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for Subway companies.

Finish Your Business Plan Today!

How to write a business plan for a subway business.

If you want to start a Subway business or expand your current Subway business, you need a business plan. The guide below details the necessary information for how to write each essential component of your Subway business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of Subway business you are running and the status. For example, are you a startup, do you have a Subway business that you would like to grow, or are you operating a chain of Subway locations?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the Subway industry.
• Discuss the type of Subway business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of Subway business you are operating.

For example, you might specialize in one of the following types of Subway businesses:

• Traditional Subway Business: In this type of Subway business, you will serve customers in a retail operation, offering menu items from the Subway corporate headquarters to serve public customers.
• Non-Traditional Subway Business: If you are opening a non-traditional Subway business, your location will determine the food choices offered and layout of your restaurant. Such locations are found in hospitals, specialty restaurants within a larger restaurant, those in airport locations and others in sports arena locations.
• Subway Express: This type of Subway business is focused on customers who have a limited amount of time. Menu items are limited to fast, favorite items and pricing is based on basic menu fare without customized ingredients. Found in convenience stores and pocket retail shops, these businesses are smaller than traditional, but typically serve high-volumes of fast food.

In addition to explaining the type of Subway business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, the amount of revenue during the past six months, opening a second Subway store location, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the Subway industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the Subway industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your Subway business plan:

• How big is the Subway industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your Subway business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your Subway business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, corporations, civic organizations and event/venue organizers.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of Subway business you operate. Clearly, individuals would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regard to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other Subway businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes grocery stores, specialty fast food outlets, and traditional dining rooms.

For each direct competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of fast food business are they?
• What is their pricing (premium, low, etc.)?
• What sets their business apart from others?
• What are their weaknesses?

With regard to the last two questions, think about your answers from the customers’ perspective. And, don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide options for high-volume customers?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a Subway business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of Subway company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide Subway fare to college-aged students on a large scale promotional basis?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your Subway company. Document where your company is situated and mention how the site will impact your success. For example, is your Subway business located in a busy retail district, a business district, or a standalone building? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your Subway marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute direct mail pieces to your target audience
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) with target keywords on your website

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your Subway business, including answering calls, planning and stocking Subway items, paying invoices, contacting customers, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your 100th Subway sandwich, or when you hope to reach $X in revenue. It could also be when you expect to expand your Subway business to a second or third location.

Management Team

To demonstrate your Subway business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing Subway businesses. If so, highlight this experience and expertise. But, also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a Subway business or successfully running a Subway restaurant in a commercial building.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 50 customers per day, and/or offer special Subway sales online? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your Subway business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit, but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a Subway business:

• Cost of inventory and related packaging
• Cost of furnishings or accessories
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, office supplies and equipment

Attach your full financial projections in the appendix of your plan, along with any supporting documents that make your plan more compelling. For example, you might include your office location lease or a list of friends and associates who are already lined up to buy Subway from your business.

Writing a business plan for your Subway business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the Subway industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful Subway business.

Subway Business Plan FAQs

What is the easiest way to complete my subway business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your subway business plan.

How Do You Start a Subway Business?

Starting a Subway business is easy with these 14 steps:

• Choose the Name for Your Subway Business
• Create Your Subway Business Plan
• Choose the Legal Structure for Your Subway Business
• Secure Startup Funding for Your Subway Business (If Needed)
• Secure a Location for Your Business
• Register Your Subway Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Subway Business
• Buy or Lease the Right Subway Business Equipment
• Develop Your Subway Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Subway Business
• Open for Business

Where Can I Download a Free Business Plan Template PDF?

Click here to download the pdf version of our basic business plan template.

Our free business plan template pdf allows you to see the key sections to complete in your plan and the key questions that each must answer. The business plan pdf will definitely get you started in the right direction.

We do offer a premium version of our business plan template. Click here to learn more about it. The premium version includes numerous features allowing you to quickly and easily create a professional business plan. Its most touted feature is its financial projections template which allows you to simply enter your estimated sales and growth rates, and it automatically calculates your complete five-year financial projections including income statements, balance sheets, and cash flow statements. Here’s the link to our Ultimate Business Plan Template.

Don’t you wish there was a faster, easier way to finish your Subway business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan writers can create your business plan for you.

Sample Subway Franchise Business Plan

• March 12, 2023

Do you need help starting a subway franchise? If YES, here is a sample subway Business Plan.

Subway restaurant is one of the largest restaurant chains in the world. To own this franchise, you need to have a business plan ready. This Subway franchise business plan example is provided for this purpose.

Do you know what it takes to start a Subway sandwich shop? How much does a Subway owner make a year? Subway is a top eatery in the food industry that has been franchising for many years. Though it reached the peak of success in the food business in record time, Subway continues to have increased demand and is expanding faster than ever before.

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SUBWAY FRANCHISE BUSINESS PLAN SAMPLE

If you are an entrepreneur with a good eye for lucrative business and a desire to play in the food industry, owning a franchise with Subway is the best thing to do.

This article serves as a guide to buying and running a Subway franchise, so read further with rapt attention to know and understand the company and its system of doing business and see how well you can fit in.

You should know about the organization you want to start a business with, so let me introduce the company before I go into the business model of the Subway franchise.

About Subway Franchise

It all started in 1965 when a young man went to a family friend to solicit college funds. The founder of Subway, Fred DeLuca, got the money he asked for, but his benefactor, Dr. Peter Buck, gave him $1,000 on the condition that he opens a sandwich shop.

This led to the birth of Subway, as both men became business partners, but the name was not always Subway; it started as Pete’s Super Submarines, which was replaced by Subway in 1974.

The first shop was opened in Bridgeport, Connecticut, and about nine years after the first opening, they had managed to open 16 other branches all over the state of Connecticut. This progress looked slow to the founders, who decided to start offering franchising opportunities to boost the expansion of the business.

Since the first franchising unit was opened in Wallingford in 1974, Subway started to experience a rapid expansion. As of 2013, this business opened more than 50 new franchising units weekly!

With global recognition as a nutritious substitute to the traditional fast foods we have around, Subway continues to feed customers with the improvement of their health in mind.

A Subway menu contains breakfast, salads, all sandwiches, guest subs, kids pack, side drinks, and extras. Platters are also available for all kinds of occasions with any size of the crowd.

Currently, over 44,000 Subway franchises are scattered all over 111 different countries worldwide.

These are the vital things you need to know about the Subway franchise;

• First, you do not need any previous experience with business owners to start a franchise with Subway, but good leadership skills and business management are an added advantage.
• Even if this is a food business, you don’t need to be a cook because the Subway manual clearly states that there is no cooking or grills.
• Being a Subway franchisee means you will pay an ongoing royalty fee of 8% and an Ad royalty fee of 4.5%.
• You are allowed to have absentee ownership.
• You will need eight to twelve employees to run your Subway franchise.
• You can build your restaurant by using your contractor or letting Subway recommend one.
• You can choose to sell your restaurant any time you feel like it; the company has to approve the buyer.
• You will have proper training and support before you launch your business, and even after you start, there will be periodic training for you and your staff.
• Lending services are available for you in case you need them.
• Subway does not explicitly publish any earning claims for its franchisees. You can refer to the Franchise Disclosure Document (FDD) for more information.

Starting your Subway Franchising Business

How much does it cost to own a subway? To start your Subway franchise;

• You must have a net worth ranging from $80,000 to $310,000, along with other financial requirements.
• You will need liquid cash ranging from $30,000 to $90,000.
• You will make an initial investment of $147,050.

These are the steps to acquiring and running your Subway business;

How do I become a subway franchisee?

• Attend the free seminar organized by the company and meet Subway representatives.
• Fill out the franchise application form on this website https://subapps1.subway.com/AdditionalInfoApp/index.aspx.
• You will pay a franchise fee of $15,000. It is a one-time payment that will give you the right to use the Subway trademark and brand name anywhere in the world.
• Sign the Subway franchise terms of agreement and renewal, which seals your 20 years contract that can be renewed on expiration with the company.
• Attend the two weeks Subway training course where they groom you and your staff on basic management skills and the Subway system of doing business.
• Secure a location for your business. Subway will provide you with a list of approved sites during your qualifying process.
• Purchase food for your restaurant by ordering from a Subway-approved vendor.
• Launch your business

Subway is headquartered at 325 Sub Wy. Milford, CT 06461, and the present Chief Executive Officer is Suzanne Greco.

SUBWAY FRANCHISE BUSINESS PLAN EXAMPLE

Using this sample business plan, you have a template to work with. We have covered some of the most overlooked areas by newbie entrepreneurs. Now you have the opportunity to put together a plan that captures the vital aspects of doing business.

Let’s get into the nitty gritty without further ado;

• Executive Summary

Subway Restaurant is a franchise opportunity that seeks to replicate the franchisor’s successes. We are a dynamic team driven by a desire to run a highly efficient business model. We are located in Baton rouge, LA.

Our products and services will consist of those allowed by the franchisor.

Some of these will include the franchisor’s signature product, the submarine sandwich, also known as subs. Others are donuts, muffins, cookies, paninis, salads, and wraps.

Our business will be located in the heart of Baton Rouge’s central business district. This location is strategic and presents us with an opportunity to grow and expand rapidly.

• Our Products

All Subway Restaurant’s products and services are of the highest quality. We seek to continue this tradition of excellence by making these products available to all our esteemed customers. These products include submarine sandwiches, known as Subs, salads and wraps, paninis, cookies, muffins, and donuts. These will be prepared with specially formulated spices in a hygienic environment.

• Vision Statement

We will not only continue in the franchisor’s tradition of excellence but will follow a growth model that will result in the opening of multiple units. Because we are expansion-driven, our sights will be set on identifying opportunities from the onset. This will allow us to implement strategies to establish more franchise units quickly; this will be done with the complete guidance of the franchise owners.

• Mission Statement

Our mission at Subway Restaurant is to offer our clients delicious meals in a cozy and comfortable environment. We also seek to become one of the most productive and competitive Subway franchises.

• SWOT Analysis

For meaningful growth to be achieved, a SWOT Analysis of our business operations has been conducted. This has allowed us to identify key areas important to achieving our set targets. The following are our findings;

The experience of our workforce is of great importance to us. This is coupled with our strategic location. This location is easily accessible from all directions of the city. This busy location enhances our potential for profitability.

Our firm commitment to growth also counts among our strengths. Every member of our team is driven by this single determination to succeed.

Our weakness can be attributed to the availability of substantial funding. We would have loved to start on a larger scale. The consolation is that we will gradually expand with the right approach and determination, no matter our current size.

• Opportunities

With a Subway franchise, opportunities are never in short supply. We are taking full advantage of these opportunities to establish a thriving business that will help us achieve three objectives; increase sales and profits, create employment opportunities and satisfy our clients.

Threats faced by our business include the risks posed by a troubled economy or a recession and stiff competition from an oversaturated industry. The former cannot be readily predicted, but there is a chance it could happen anytime.

• Target Market

A lot of people love to eat out. This is the primary reason restaurants are still relevant. We have a diverse target market: families, single men and women, tourists, teenagers, corporate executives, and lovers. Others include families and the young. These segments of society regularly patronize restaurants.

Our services and products will be targeted at them to help us build a dedicated group of clientele.

• Sales Projections

With the vast market at our disposal comes the opportunity to grow our client base. To achieve a level of sales sufficient enough to help us realize our growth potential, we have come up with a 3-year projected sales as seen below;

• First Financial Year.             $390,000.00
• Second Financial Year.        $560,000.00
• Third Financial Year.            $800,000.00
• Marketing and Sales

Marketing is essential to us. We seek to adopt the most effective strategies. These have a direct bearing on sales. We will assume the internet as a tool to promote our restaurant. This will be through creating a user-friendly website revealing every service we provide. Social media marketing will also be adopted.

We will also have a referral program where customers will accumulate points that can be redeemed for our products. Paid ads will run on TV and radio stations in addition to the distribution of handbills.

• Competitive Advantage

Other businesses offer similar services. However, what sets us apart from the pack is our brand. Subway is a reputable brand with both domestic and international appeal. We will use this advantage to set up a restaurant business to consolidate its previous successes.

This Subway restaurant business plan sample has provided essential information you can work with to draft your unique plan.

While using this as a template, you can use information obtained from your feasibility study to write a plan that will benefit the growth and stability of your business.

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