SUBWAY BROCHURE -short form

 

The SUBWAY^® Franchise Concept: Low investment - low overhead - simple operation (no cooking involved) - alternative to what other quick service restaurants are offering.

 

Citizenship Requirements: Anyone purchasing a SUBWAY^® franchise to be located in the United States must be a citizen or permanent legal resident of the United States

 

 

Franchise Fees: The initial fee is $15,000, if qualified $7,500 for additional franchises and $5,000 for a Satellite franchise. A satellite restaurant is not a full restaurant. The satellite restaurant operates with the support of and together with an existing base restaurant located close by. The franchise agreement is for 20 years and is renewable for an additional 20 years without a fee at which time you would sign a new franchise agreement. The franchisee can sell their store at anytime, provided the company approves of the buyer. At transfer, a Transfer fee is due which is about $7,500 but can be less.

 

Capital Requirements: The total investment can range from $115,000 to $259,000 for traditional locations and $84,500 to $200,000 for non-traditional locations. Figures do not include extensive exterior renovations. These amounts represent the net investment required if you are eligible for the company's equipment leasing program. If you do not select the equipment leasing program or it is not available, you should substitute the costs for Equipment Lease Security Deposit with $49,500 to $72,000. Subway suggests that storeowners have half of the amount in cash and finance the other half. Subway prefers that a franchisee does not carry a large debt service.

Cash from a Home Equity line is considered as a debt also, so it may or may not be a good idea  

 

Equipment Leasing: The SUBWAY^® franchise system offers an equipment leasing package that requires a security deposit of 10% of the equipment costs, with a minimum of $1,000. The lease payments are for 60 months.  At the end of the lease term you may purchase the equipment for 10% of the original value.  The security deposit will be applied towards the purchase.  The equipment may be purchased at any time during the lease period using the buyout calculation schedule. For additional information you must refer to the Franchise Disclosure Document.  

 

Financing: Aside from the equipment leasing program that SUBWAY^® system offers, IPC Financial Solutions helps to secure financing for new franchisees to purchase new and existing SUBWAY^® restaurants. The IPC is an independent SUBWAY^® franchisee-owned and operated purchasing cooperative. The IPC negotiates the lowest costs for goods and services while improving quality, and ensures the best value for SUBWAY^® storeowners.