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Updated RecentlySubway vs Potbelly Sandwich Shop Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Subway vs Potbelly Sandwich Shop 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 | $534,950 - $874,000 |
| Franchise Fee | $15,000 | $40,000 |
| Royalty Fee | 8% | 6% |
| Advertising Fee | 4.5% | Up to 4% |
| Year Founded | 1965 | 1977 |
| Year Franchised | 1974 | 2009 |
| Term Of Agreement | 20 years | - |
| Term Of Agreement | 20 years | - |
| Renewal Fee | none | - |
Business Experience Requirements |
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| Experience | Potbelly is looking for "Potbelly People" to become franchisees. That means people that love working with a team, have solid business experience (not necessarily in restaurants), the financial qualifications, possess personal motivation and have been successful. Our franchise owner/operator model is a two person team. Whether a family partnership or a business partnership we are looking for an operating team that wants to be owners of the neighborhood sandwich shop within their community. | |
Financing Options |
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| In-House/3rd Party | In-House/3rd Party | |
| Franchise Fees | Yes/Yes | -/Yes |
| Start-up Costs | No/Yes | -/Yes |
| Equipment | Yes/Yes | -/Yes |
| Inventory | No/Yes | -/Yes |
| Receivables | No/No | -/Yes |
| Payroll | No/No | -/Yes |
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 | All new franchisees participate in a 10-12 week training program. This consists of real life experience in one of our company-owned training shops. In addition, we will train your key holding employees for 6 weeks at one of our company-owned training shops. Once completed, franchisees receive regular updates to their training along with our company-owned stores, including regular on site reviews. On-The-Job Training: 355 hours Classroom Training: 80 hours |
| Support | Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform | Purchasing Co-ops Newsletter Meetings/Conventions Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform |
| Marketing | Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app | Ad Templates 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)
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Expansion Plans |
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| US Expansion | Yes | Yes |
| Canada Expansion | No | - |
| International Expansion | Yes | Yes |
Company Overviews
About Subway
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.
Veteran Incentives Franchise fee waived if opening on a military/government location; 50% off franchise fee if opening on non-government location but receiving government financing
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