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Below is an in-depth analysis and side-by-side comparison of Subway vs Sandwich Tree Restaurants 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 | $90,000 - $120,000 |
Franchise Fee | $15,000 | $10,000 - $17,500 |
Royalty Fee | 8% | 5% |
Advertising Fee | 4.5% | 3% |
Year Founded | 1965 | 1978 |
Year Franchised | 1974 | 1979 |
Term Of Agreement | 20 years | 5 years +5 |
Term Of Agreement | 20 years | 5 years +5 |
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 | -/- |
Start-up Costs | No/Yes | -/- |
Equipment | Yes/Yes | -/- |
Inventory | No/Yes | -/- |
Receivables | No/No | -/- |
Payroll | 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 | Headquarters 2 Weeks |
Support | Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform | Central Data Processing: At Additional Cost Central Purchasing Field Operation Evaluation Field Training Initial Store Opening Inventory Control Franchisee Newsletter Regional or National Meetings 800 Telephone Hotline |
Marketing | Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app | - |
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)
| Average Number of Employees: 4 Full-time, 7 Part-time Passive Ownership: Allowed, But Discouraged |
Expansion Plans |
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US Expansion | Yes | - |
Canada Expansion | No | Yes |
International Expansion | 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.
The challenges and rewards of operating your own business are like no other. Franchising will not reduce the fear of taking the next step into operating a business. It will not reduce the time and effort necessary to create success. What franchising offers is a business format that allows you to capitalize on the results of others. It affords the opportunity to be fully equipped to launch and grow within a proven concept. Sandwich tree provides a full service of tools, training, and support to compliment your efforts. The level of independence and success you achieve will be up to you. The benefits associated with Sandwich Tree and the information needed to make an informed decision about your business future are available for the asking. For further information, simply call 604-220-4566