1. Are you pleased with your investment in this franchise?
Yes, I am pleased and enjoy running this business.
2. Has the franchiser lived up to its promises?
Yes, they help me a lot when i started my franchise.
3. What was your greatest disappointment after getting into the business?
So far no.
4. How effective was the training you received in helping you run the franchise?
Our designee or manager will take part in the intensive two-week program.
5. What are your biggest challenges and problem?
Biggest challenge would be time management.
6.What is your franchise’s cash flow like?
-
7.How much money are you making on your investment?
-
8. What do you like most about being a franchisee? Least?
The franchisers always give me support when I started this franchise. I don't have to promote my product since everybody know subway.
9. Is there a franchise advisory council that represents franchises?
Yes.
10. Knowing what you know now, would you buy this franchise again?
Yes. I am enjoy running this business.
Tuesday 23 July 2013
Question to Ask Current Franchisees
1. How much does your franchise gross per year? How much does it net? Are the procedures followed to make royalty payments to the franchisee troublesome?
-
2. Are the financial projections of revenues, expenses, and profits that the franchisor provided me accurate in your judgement?
Yes.
3. Does the franchisor give you enough assistance in operating your business?
Yes, there are online seminars and hotline that you can contact the franchise sale team to help you.
4. How many hours, on average, do you work a week?
Depends.
5. How often do you get a vacation?
-
6. Have you been caught off-guard by any unexpected cost or expectations?
No
7. Does your franchisor provide on-going training and support to you?
Yes, they provide training for new staffs and new franchisees.
8. If you had to do it all over again, would you purchase a franchise in this system? Why or why not?
-
-
2. Are the financial projections of revenues, expenses, and profits that the franchisor provided me accurate in your judgement?
Yes.
3. Does the franchisor give you enough assistance in operating your business?
Yes, there are online seminars and hotline that you can contact the franchise sale team to help you.
4. How many hours, on average, do you work a week?
Depends.
5. How often do you get a vacation?
-
6. Have you been caught off-guard by any unexpected cost or expectations?
No
7. Does your franchisor provide on-going training and support to you?
Yes, they provide training for new staffs and new franchisees.
8. If you had to do it all over again, would you purchase a franchise in this system? Why or why not?
-
Question to Ask a Franchisor
Subway's Background
SUBWAY® restaurants began in the summer of 1965 when 17 year old Fred DeLuca graduated high school with aspirations of becoming a doctor. While at a cookout that July, he asked a family friend, Dr. Peter Buck, for advice on how to pay for college hoping that Dr. Buck would just give him the money. Instead, Dr. Buck suggested that Fred open a submarine sandwich shop similar to the one Dr. Buck frequented as a child in Maine so that Fred could earn enough money to pay his tuition. Dr. Buck wrote Fred a check for $1,000 and they became business partners. This was the start of Doctor’s Associates Inc.
A month later, on August 28, 1965, Fred and Dr. Buck opened Pete’s Super Submarines in Bridgeport, Connecticut. From the very beginning they established goal setting as an integral part of SUBWAY® restaurants’ growth. With a clear vision, Fred and Dr. Buck implemented a strategic plan to open 32 restaurants within 10 years. In 1974 they found themselves behind schedule with only 16 open restaurants. Fred decided it was time to give franchising a try. Today, SUBWAY® restaurants have more than 33,000 locations in approximately 90 countries. We have been rated the #1 franchise by Entrepreneur Magazine for 17 of the past 23 years.
SUBWAY® restaurants began in the summer of 1965 when 17 year old Fred DeLuca graduated high school with aspirations of becoming a doctor. While at a cookout that July, he asked a family friend, Dr. Peter Buck, for advice on how to pay for college hoping that Dr. Buck would just give him the money. Instead, Dr. Buck suggested that Fred open a submarine sandwich shop similar to the one Dr. Buck frequented as a child in Maine so that Fred could earn enough money to pay his tuition. Dr. Buck wrote Fred a check for $1,000 and they became business partners. This was the start of Doctor’s Associates Inc.
A month later, on August 28, 1965, Fred and Dr. Buck opened Pete’s Super Submarines in Bridgeport, Connecticut. From the very beginning they established goal setting as an integral part of SUBWAY® restaurants’ growth. With a clear vision, Fred and Dr. Buck implemented a strategic plan to open 32 restaurants within 10 years. In 1974 they found themselves behind schedule with only 16 open restaurants. Fred decided it was time to give franchising a try. Today, SUBWAY® restaurants have more than 33,000 locations in approximately 90 countries. We have been rated the #1 franchise by Entrepreneur Magazine for 17 of the past 23 years.
How you train and mentor your franchisees?
The training is for two weeks, 50% in class and 50% in store training. All franchisees named on each franchise agreement must satisfactorily complete training at SUBWAY® World Headquarters before the store will be allowed to open.
How does the exit process work?
Yes, you may sell your restaurant at any time after opening, provided the company approves the buyer.
In what ways do you work with a franchisee who is struggling?
Franchise World Headquarters, LLC is proud of the excellent support systems available to SUBWAY® franchisees. Ongoing support is provided before and after you open your store. As soon as you join the SUBWAY® team, you'll have access to help to get you started. Once open, systems are in place to help you operate your location effectively.
Monday 22 July 2013
A Franchise Evaluation Checklist- The Franchiser and the Franchise
1. Is the potential market for the product or services adequate to support your franchise? Will the prices you charge be in line with the market?
Yes, our service are quite different with other fast food business. We target people to eat healthier and get them to make their own choice of making their subway sandwich.
2. Is the market’s population growing, remaining static or shrinking? Is the demand of your product or service growing, remaining static or shrinking?
Subway market’s population is growing. Many people are getting health conscious. I am very sure that the demand of our products growing.
3. Is the product or service safe and reputable?
Yes of course. All SUBWAY® restaurants follow our “Gold Standard” policies regarding prepared food and produce manufacturing and inspection specifications. All franchises are provided with information on proper food handling procedures in order to properly train their crew members.
Food is prepared fresh daily and temperatures are monitored regularly. Gloves are required to be worn during all food handling procedures.
4. Is the product of service a passing “fad”, or is it a durable business idea.
-
5. What will the competition, direct or indirect, be in your sales territory? Do any other franchisees operate in this general area?
There are quite many franchisees is in the general area. General area are normally like shopping centres.
6. Is the franchise international, national, regional, or local in scope? Does it involve full- or part-time involvement?
International. Our franchise exist in more than 100 countries and territories and it is one the fastest growing franchises in the world.
7.How many years have the franchiser been in operation? Does it have a sound reputation for honest dealings with franchisees?
Subway was founded in year 1965.
8. How many franchise outlets now exist? How many will there be a year from now? How many outlets are company owned?
There are about 39,649 outlets in 102 countries and territories. There is only one company-owned unit. It runs as a testing facility by the Research and Development department.
9. How many franchises have failed? Why?
-
10.How many franchise have left the system within the past year? What were the reasons for leaving?
-
11.What service and assistance will the franchiser provide? What kind of training program does the franchise offer? How long does It last? What topic does It cover? Does the franchiser offer ongoing assistance and training?
For new franchises, the training is for two weeks, 50% in class and 50% in store training. All franchisees named on each franchise agreement must satisfactorily complete training at SUBWAY® World Headquarters before the store will be allowed to open.
12. Will the franchise perform a location analysis to help you find a suitable site? If so, is there an extra charge for doing so?
The locations approved for development by SUBWAY® will be provided to you during the qualifying process. You may also submit a location that you find. They will investigate your location and provide you with analysis of its viability for development.
13. Will the franchiser offer you exclusive distribution rights for the length of the agreement, or may it sell to other franchises in the area?
-
14. What facilities and equipments are required for the franchise? Who pays for construction? Is there a lease agreement?
You may purchase SUBWAY® equipment outright with cash or with a secure loan. The SUBWAY® franchise system also 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 or to see a sample copy of the equipment lease, please refer to the Franchise Disclosure Document.
15.What is the total cost of the franchise? What are the initial capital requirements? Will the franchiser provide financial assistance? Of what nature? What is the interest rate? Is the franchiser financially sound enough to fulfil all its promises?
The cost of the franchise could cost from RM406,200 to RM886,650. . Subway also offers finance programs for leased space and construction programs through Subway affiliates, and may loan money to franchisees in connection with a Subway restaurant. In addition, Subway may guarantee a loan for a franchisee in connection with a Subway restaurant. Subway may change or eliminate these loan programs and equipment leasing program without any prior notice to franchisees.
16. How much is the franchise fee? Exactly what does it cover? Are there any confining fees? What additional fees are there?
The franchise fee is RM30,000. Other fees such as the 8% royalties and 4.5% promotion fee for advertising.
17. Does the franchiser provide an estimate of expenses and income? Are they reasonable for your particular area? Are they sufficiently documented?
-
18. How risky is the franchise opportunity? Is the return of the investment consistent with the risk?
Subway is actually ranked as one of the safest franchise with only 7% of failures while other franchise companies can easily have double digits failure percentage.
19. Does the franchiser offer a written contract that covers all the details of the agreement? Have your attorney and your accountant studied its term and approved it? Do you understand the implications of the contact?
-
20. What is the length of the franchise agreement? Under what circumstances can it be terminated?
If you terminate the contact, what are the costs to you? What are the costs and terms of renewal?
The length of the franchise agreement is 20 years. Franchise will automatically renew for additional 20 year periods, unless either party chooses not to renew. Subway has the right to refuse renewal if the franchisee is not in full compliance.
21.Are you allowed to sell your franchise to a third party? Does the franchiser reserve the right to approve the buyer?
Yes, you may sell your restaurant at any time after opening, provided the company approves the buyer.
22. Is there a national advertising program? How is it financed? What media are used? What help is provided for local advertising?
-
23.Once you open for business, exactly what support will the franchiser offer you?
Your local representative will help you get started and provide ongoing operational evaluations. Besides, Franchise World Headquarters, LLC is proud of the excellent support systems available to SUBWAY® franchisees. Ongoing support is provided before and after you open your store. As soon as you join the SUBWAY® team, you'll have access to help to get you started. Once open, systems are in place to help you operate your location effectively.
24.How does the franchise handle complaints from and disputes with franchisees? How well has the system worked?
-
Yes, our service are quite different with other fast food business. We target people to eat healthier and get them to make their own choice of making their subway sandwich.
2. Is the market’s population growing, remaining static or shrinking? Is the demand of your product or service growing, remaining static or shrinking?
Subway market’s population is growing. Many people are getting health conscious. I am very sure that the demand of our products growing.
3. Is the product or service safe and reputable?
Yes of course. All SUBWAY® restaurants follow our “Gold Standard” policies regarding prepared food and produce manufacturing and inspection specifications. All franchises are provided with information on proper food handling procedures in order to properly train their crew members.
Food is prepared fresh daily and temperatures are monitored regularly. Gloves are required to be worn during all food handling procedures.
4. Is the product of service a passing “fad”, or is it a durable business idea.
-
5. What will the competition, direct or indirect, be in your sales territory? Do any other franchisees operate in this general area?
There are quite many franchisees is in the general area. General area are normally like shopping centres.
6. Is the franchise international, national, regional, or local in scope? Does it involve full- or part-time involvement?
International. Our franchise exist in more than 100 countries and territories and it is one the fastest growing franchises in the world.
7.How many years have the franchiser been in operation? Does it have a sound reputation for honest dealings with franchisees?
Subway was founded in year 1965.
8. How many franchise outlets now exist? How many will there be a year from now? How many outlets are company owned?
There are about 39,649 outlets in 102 countries and territories. There is only one company-owned unit. It runs as a testing facility by the Research and Development department.
9. How many franchises have failed? Why?
-
10.How many franchise have left the system within the past year? What were the reasons for leaving?
-
11.What service and assistance will the franchiser provide? What kind of training program does the franchise offer? How long does It last? What topic does It cover? Does the franchiser offer ongoing assistance and training?
For new franchises, the training is for two weeks, 50% in class and 50% in store training. All franchisees named on each franchise agreement must satisfactorily complete training at SUBWAY® World Headquarters before the store will be allowed to open.
12. Will the franchise perform a location analysis to help you find a suitable site? If so, is there an extra charge for doing so?
The locations approved for development by SUBWAY® will be provided to you during the qualifying process. You may also submit a location that you find. They will investigate your location and provide you with analysis of its viability for development.
13. Will the franchiser offer you exclusive distribution rights for the length of the agreement, or may it sell to other franchises in the area?
-
14. What facilities and equipments are required for the franchise? Who pays for construction? Is there a lease agreement?
You may purchase SUBWAY® equipment outright with cash or with a secure loan. The SUBWAY® franchise system also 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 or to see a sample copy of the equipment lease, please refer to the Franchise Disclosure Document.
15.What is the total cost of the franchise? What are the initial capital requirements? Will the franchiser provide financial assistance? Of what nature? What is the interest rate? Is the franchiser financially sound enough to fulfil all its promises?
The cost of the franchise could cost from RM406,200 to RM886,650. . Subway also offers finance programs for leased space and construction programs through Subway affiliates, and may loan money to franchisees in connection with a Subway restaurant. In addition, Subway may guarantee a loan for a franchisee in connection with a Subway restaurant. Subway may change or eliminate these loan programs and equipment leasing program without any prior notice to franchisees.
16. How much is the franchise fee? Exactly what does it cover? Are there any confining fees? What additional fees are there?
The franchise fee is RM30,000. Other fees such as the 8% royalties and 4.5% promotion fee for advertising.
17. Does the franchiser provide an estimate of expenses and income? Are they reasonable for your particular area? Are they sufficiently documented?
-
18. How risky is the franchise opportunity? Is the return of the investment consistent with the risk?
Subway is actually ranked as one of the safest franchise with only 7% of failures while other franchise companies can easily have double digits failure percentage.
19. Does the franchiser offer a written contract that covers all the details of the agreement? Have your attorney and your accountant studied its term and approved it? Do you understand the implications of the contact?
-
20. What is the length of the franchise agreement? Under what circumstances can it be terminated?
If you terminate the contact, what are the costs to you? What are the costs and terms of renewal?
The length of the franchise agreement is 20 years. Franchise will automatically renew for additional 20 year periods, unless either party chooses not to renew. Subway has the right to refuse renewal if the franchisee is not in full compliance.
21.Are you allowed to sell your franchise to a third party? Does the franchiser reserve the right to approve the buyer?
Yes, you may sell your restaurant at any time after opening, provided the company approves the buyer.
22. Is there a national advertising program? How is it financed? What media are used? What help is provided for local advertising?
-
23.Once you open for business, exactly what support will the franchiser offer you?
Your local representative will help you get started and provide ongoing operational evaluations. Besides, Franchise World Headquarters, LLC is proud of the excellent support systems available to SUBWAY® franchisees. Ongoing support is provided before and after you open your store. As soon as you join the SUBWAY® team, you'll have access to help to get you started. Once open, systems are in place to help you operate your location effectively.
24.How does the franchise handle complaints from and disputes with franchisees? How well has the system worked?
-
A Franchise Evaluation Checklist- Myself
1. Are you qualified to operate a franchise successfully? Do you have adequate drive, skills, experience, education, patience and financial capacity? Are you prepared to work hard?
Yes. I have all the qualities that mention above and I am willing to work hard.
2. Are you willing to sacrifice some autonomy in operating a business to own a franchise?
I will answer Yes if for a stable franchise like Subway. I am willing to sacrifice and put all my effort in my business.
3. Can you tolerate the financial risk? Would business failure wipe you out financially?
Yes, for sure. I will bear the failure and have a backup. If not, I will sell my business to the next buyer.
4. Can you juggle multiple tasks simultaneously and prioritize various projects so that you can accomplish those that are more important.
Yes. We need to sacrifice somethings in order to complete a task.
5.Are you genuinely interested in the product or service you will be selling? Do you enjoy this kind of business? Do you like to sell?
Yes, I am interested with the product and service which thats why I started this business. I do enjoy this business.
6. Do you enjoy working with and managing people? Are you a “team player”?
Yes, I like working with people. I am a team player, the relationship between me and my staff are very important in order to make the business successful.
7. Will the business generate enough profit to suit you?
I might not earn back the profit in first few months or even a year. But I am very sure my business will generate enough profit for me.
8. Has the franchiser investigated your background thorough enough to decide if you are qualified the operate the franchise?
They will investigate my personal information such as education background, financial information as well as some professional references. The local development office will guide me through the process while evaluating my skills to meet the challenge of becoming a successful SUBWAY® franchisee.
9. What can this franchiser do for you that you cannot do for yourself?
The advertising and promote part.
Yes. I have all the qualities that mention above and I am willing to work hard.
2. Are you willing to sacrifice some autonomy in operating a business to own a franchise?
I will answer Yes if for a stable franchise like Subway. I am willing to sacrifice and put all my effort in my business.
3. Can you tolerate the financial risk? Would business failure wipe you out financially?
Yes, for sure. I will bear the failure and have a backup. If not, I will sell my business to the next buyer.
4. Can you juggle multiple tasks simultaneously and prioritize various projects so that you can accomplish those that are more important.
Yes. We need to sacrifice somethings in order to complete a task.
5.Are you genuinely interested in the product or service you will be selling? Do you enjoy this kind of business? Do you like to sell?
Yes, I am interested with the product and service which thats why I started this business. I do enjoy this business.
6. Do you enjoy working with and managing people? Are you a “team player”?
Yes, I like working with people. I am a team player, the relationship between me and my staff are very important in order to make the business successful.
7. Will the business generate enough profit to suit you?
I might not earn back the profit in first few months or even a year. But I am very sure my business will generate enough profit for me.
8. Has the franchiser investigated your background thorough enough to decide if you are qualified the operate the franchise?
They will investigate my personal information such as education background, financial information as well as some professional references. The local development office will guide me through the process while evaluating my skills to meet the challenge of becoming a successful SUBWAY® franchisee.
9. What can this franchiser do for you that you cannot do for yourself?
The advertising and promote part.
Subway's Progress in Malaysia and Asia
Subway Malaysia plans to expand its reach in Malaysia by expanding the number of outlets from 123 to 150 by the end of the year. "Our goal this year is to identify potential prospects nationwide and widen our reach to other states," said Subway Malaysia development agent Datuk Vincent Choo.
He notes that the brand value of Subway has been growing steadily in the past three years with customer satisfaction exceeding the company's expectation.
Subway Outlet
39, 649 Subway Restaurants in 102 countries as at June 2013.
Subway currently have 133 outlets in Malaysia.
SUBWAY® brand is the world’s largest submarine sandwich franchise, and has become a leader in the international development of the quick service restaurant industry.
SUBWAY® restaurants first ventured outside North America when the first location opened in the small Middle Eastern island nation of Bahrain in December of 1984. Since then, the SUBWAY® concept has gone around the world, with restaurants opening from Argentina to Zambia.
Wherever SUBWAY® restaurants are located, the core menu stays relatively the same — with the exception of some cultural and religious variations. World travelers can expect the same high quality of ingredients regardless of what nation they are visiting. You can enjoy a footlong Turkey Breast Sub, with your choice of a variety of vegetables and condiments served on bread baked right in the restaurant in Jamaica, then travel to New Zealand and get the same footlong Turkey Breast Sub!
Sunday 21 July 2013
Subway Malaysia Menu
SUBWAY® sandwich is made-to-order, exactly the way you want it. Bread is baked in each and every restaurant, daily. Crisp vegetables are provided though local suppliers and a wide assortment of cold cuts are available, topped with your choice of our special sauces and condiments. Every order is prepared right before your eyes.
SUBWAY® restaurants are committed to offering high quality food and exceptional service. The SUBWAY® brand is famous for its made-to-order sandwiches and salads. Sandwiches are made right before your eyes and are served on Italian, Wheat and a variety of seasoned breads, baked daily in each restaurant.
SUBWAY® restaurants are committed to offering high quality food and exceptional service. The SUBWAY® brand is famous for its made-to-order sandwiches and salads. Sandwiches are made right before your eyes and are served on Italian, Wheat and a variety of seasoned breads, baked daily in each restaurant.
Subway Menu.
Subway Mission and Vision
Subway Mission Statement:
Delight every customer so they want to tell their friends – with great value through fresh, delicious, made-to-order sandwiches, and an exceptional experience.
Subway provide the tools and knowledge to allow entrepreneurs to compete successfully in the Fast Food industry worldwide, by consistently offering value to consumers through providing great tasting food that is good for them and made the way they want it.
Subway® ’s Vision:
Be the #1 Quick Service Restaurant (QSR) franchise in the world, while delivering fresh, delicious sandwiches and an exceptional experience.
Family – We build our business relationships by serving each other, our customers and our communities, much as we do within our own families.
Teamwork – We challenge ourselves and each other to succeed through teamwork, against shared goals and to be accountable for our responsibilities
Opportunity – We create an entrepreneurial, ever-growing SUBWAY® community, increasing the opportunity for everyone.
SUBWAY® Eat Fresh Live Green
The SUBWAY® brand is committed to making SUBWAY® restaurants and operations as environmentally and socially responsible as possible. The brand strives to conduct business in a way that creates profit for franchisees while minimizing the impact the business has on the environment and improving the lives of SUBWAY® customers, employees, franchisees, vendors and communities worldwide.
Delight every customer so they want to tell their friends – with great value through fresh, delicious, made-to-order sandwiches, and an exceptional experience.
Subway provide the tools and knowledge to allow entrepreneurs to compete successfully in the Fast Food industry worldwide, by consistently offering value to consumers through providing great tasting food that is good for them and made the way they want it.
Subway® ’s Vision:
Be the #1 Quick Service Restaurant (QSR) franchise in the world, while delivering fresh, delicious sandwiches and an exceptional experience.
Family – We build our business relationships by serving each other, our customers and our communities, much as we do within our own families.
Teamwork – We challenge ourselves and each other to succeed through teamwork, against shared goals and to be accountable for our responsibilities
Opportunity – We create an entrepreneurial, ever-growing SUBWAY® community, increasing the opportunity for everyone.
SUBWAY® Eat Fresh Live Green
The SUBWAY® brand is committed to making SUBWAY® restaurants and operations as environmentally and socially responsible as possible. The brand strives to conduct business in a way that creates profit for franchisees while minimizing the impact the business has on the environment and improving the lives of SUBWAY® customers, employees, franchisees, vendors and communities worldwide.
About subway
Subway International website: www.subway.com
Subway Malaysia website: mys.subway.com
Subway Facebook Page: https://www.facebook.com/subway
Subway Malaysia website: mys.subway.com
Subway Facebook Page: https://www.facebook.com/subway
With more than 39,000 locations in 102 countries, the SUBWAY® brand is the world’s largest submarine sandwich franchise, and has become a leader in the international development of the quick service restaurant industry.
SUBWAY® restaurants first ventured outside North America when the first location opened in the small Middle Eastern island nation of Bahrain in December of 1984. Since then, the SUBWAY® concept has gone around the world, with restaurants opening from Argentina to Zambia.
_w4_06-08.JPG)
Wherever SUBWAY® restaurants are located, the core menu stays relatively the same — with the exception of some cultural and religious variations. World travelers can expect the same high quality of ingredients regardless of what nation they are visiting. You can enjoy a footlong Turkey Breast Sub, with your choice of a variety of vegetables and condiments served on bread baked right in the restaurant in Jamaica, then travel to New Zealand and get the same footlong Turkey Breast Sub!
Welcome!
Hi, I am Lim Yee How. Student of Tunku Abdul Rahman College. This blog is created for assignment purpose under the subject of ABDM 4223 Entrepreneurship.
My choice of franchise is subway. I will posting question and answer about this franchise.
My choice of franchise is subway. I will posting question and answer about this franchise.
Subway offers a great variety of foot-long sandwiches. Customers can choose their own bread and own filling in their sandwiches - Meatballs, turkey ham, chicken slice, etc and top it with cheese, vegetables, pickles and so on. Subway is also perfect for a quick bite.
Subscribe to:
Posts (Atom)