Subway

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About the Franchise

Subway positions itself as a health-conscious fast-food option, featuring fresh ingredients, bread baked daily, and sourcing from around 90 local growers.

The initial franchise fee is comparatively low, generally ranging between AUD 10,000 to AUD 15,000 with total startup costs around AUD 230,000 to AUD 500,000, significantly less than many other fast-food franchises.

Flexible store formats are available: from compact food court kiosks to full-scale drive-thru or standalone units, tailored to suit various real estate types.

How the Franchise Started?

Subway was founded in 1965 by 17-year-old Fred DeLuca, who, with a loan from family friend Dr. Peter Buck, opened his first sandwich shop in Bridgeport, Connecticut, originally called Pete’s Super Submarine.

The name was changed to Subway in 1968.

The first Australian Subway franchise opened in Perth in 1988. Australia is the largest Subway market outside of North America with more locations than any other country except the USA.

The brand became popular as a healthier alternative to traditional fast food, focusing on made-to-order sandwiches.

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FAQs

– Typical initial investment ranges from AUD 230,000 to AUD 570,000, including a franchise fee of AUD 10,000 to AUD 15,000.

– Ongoing royalty fees are around 8% of gross sales, plus about 4.5% advertising fees, both exclusive of GST.
Successful franchisees are practical, sociable, hardworking, and capable of managing their business effectively.

They should be committed to high standards in food quality and customer service, able to lead a team, and adaptable to continuous brand evolution.
– Training: Conducted at the brand’s training centre in Brisbane. All new franchisees must complete a basic skills test.

– Design & Construction: Subway provides detailed store blueprints and recommends trusted contractors—but franchisees hire and manage the build themselves.

– Ongoing Support: Franchisees benefit from access to Subway’s global marketing, operational systems, local sourcing networks, and a proven business model.
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