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Below is an in-depth analysis and side-by-side comparison of Subway vs Big Apple Bagels including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $139,550 - $342,400 | $298,000 - $405,000 |
Franchise Fee | $15,000 | $25,000 |
Royalty Fee | 8% | 5% |
Advertising Fee | 4.5% | 3% |
Year Founded | 1965 | 1993 |
Year Franchised | 1974 | 1993 |
Term Of Agreement | 20 years | 10 years |
Term Of Agreement | 20 years | 10 years |
Renewal Fee | none | - |
Business Experience Requirements |
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Experience | ||
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | Yes/Yes | No/No |
Start-up Costs | No/Yes | No/No |
Equipment | Yes/Yes | No/No |
Inventory | No/Yes | No/No |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
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Training | On-The-Job Training: 33 hours Classroom Training: 62 hours Additional Training: Training available in Australia, China, Germany, India, Montreal, Canada & Miami | Our Training Sets Your Business Apart!
Our goal is to help you achieve excellence in every aspect of your business. Towards that ambitious goal, you and your key personnel will receive intensive training that covers all areas of the operation. Our training program, comprised of hands-on learning in our company-owned location and classroom instruction includes:
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Support | Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform | Our Support Sets Your Business Apart!
As a franchisor, BAB Systems, Inc. has always focused heavily on the level of support it provides to its franchisees and the importance of open lines of communication to foster strong franchisee relationships. Franchisees know they can count on us to watch our position within the industry and do what it takes to keep up with ever-changing consumer preferences and innovations in franchise support.
Of course, since the first franchise, technological advancements have changed the face of franchising. Accordingly, as its product offering has evolved, so has its franchise support program, which now includes an exclusive franchise intranet web site.
As a BAB Systems, Inc. franchisee, you'll receive guidance and assistance with the key steps involved in getting your new business up and running. Pre-opening support includes:
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Marketing | Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app | Ad slicks, Regional advertising |
Operations |
65% of all franchisees own more than one unit Number of employees needed to run franchised unit: 8-12 Absentee ownership of franchise is allowed. (100% of current franchisees are owner/operators)
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International franchisees required to buy multiple units/master licenses; 20% of all franchisees own more than one unit Number of employees needed to run franchised unit: 15 Absentee ownership of franchise is allowed. (80% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | Yes | - |
Canada Expansion | No | No |
International Expansion | Yes | Yes |
In 1965, 17-year-old Fred DeLuca and family companion Peter Buck opened Pete's Super Submarines in Bridgeport, Connecticut. With a credit from Buck for just $1,000, DeLuca trusted the modest sandwich shop would procure enough to put him through school. In the wake of battling through the initial couple of years, the organizers changed the organization's name to Subway and started diversifying in 1974. Offering a new, solid contrasting option to fast-food eateries, Subway has establishments all through the United States and in a few nations, with areas in customary and nontraditional locales alike.
In contrast with different rivals in the fast food industry, where franchisees need to pay millions, - for example, McDonald's ($1-2 million) and KFC ($1.3-2.5 million), investors in Subway need to pay just a portion of that.
The total investment is an estimated $150,050 - $328,700 in the United States and $102,000 to $234,000 in Canada.