How to Start Subway Franchise business in India?

Step by step about how to Start Subway Franchise business in India

Table of Contents

Fast food business is increasing at a fast pace and traders are making good profit from it. Other than this, opening a restaurant or a café is also profitable. Food franchises are also operating well in the market, and among all, Subway is the best among franchise companies. The subway franchises are opening in large number in India, there are near about 353 stores. Therefore, Subway has become a popular brand, and so, traders are trying to get subway franchises and open business.  However, Subway franchise is similar to that of KFC Franchise and McDonald’s franchise.

Digging deep into Subway’s history

  • Initial step – Subway allows franchise business throughout the world, and it came into being in August 1965. It was launched by Fred Dulekea at a tender age of 17. In the initial stage, Fred borrowed $1000 to get a loan of 65 thousand rupees. With this, he opened his sandwich shop that turned into the world famous ‘Subway.’

  • Second largest franchise distributor – Subway has been ranked among the second fastest franchise distributing company during 2012. By 2017, almost 45000 shops came up in around 100 countries. 

  • Popular food item – Among the list of food items that Subway offers, sandwiches are the famous one. Apart from this, salads and pizzas are worthy of tasting from Subway wherever you visit the shop in the world.

What do you understand by Subway franchise?

Franchise businesses are offered by Subway throughout the world to let franchisers open branch of Subway and expand its business. To start with Subway’s franchise business, one has to seek permission from Subway. With this, the franchiser gets the provision to use Subway’s brand name along with a list of foods. Also, it shall guide the franchiser with the food recipes. However, the Subway will share all its tactics and recipe of a food item by taking fees from the franchiser. 

Reasons to choose Subway for franchise business

  • Massive growth

As you start the business as a franchiser, you become part of this chain. In the whole world, it is known that all franchise workers work together and therefore, it becomes easy to deal with the franchisers. However, the franchisers together are a contribution to the worldwide growth of the brand.

  • Unique food

The popularity of Subway is due to its delicious sandwiches, salads and other food items that it offers. The foods have gained popularity throughout the world. One unique feature of Subway is that it tries changing food tastes depending on customer feedback. This way, Subway restaurants can easily get the attention of the target group by catering to their taste.

  • Large and supportive network

Subway provides excellent support to its large network of workers. The support is extended even to the ones who have just started with a franchise business under Subway. Other than this, the workers will receive training on every small thing. These will help in expanding the business and help in its growth.

  • Top-notch promotion, marketing and training

When opening the franchise, Subway makes arrangements for providing top-notch training. This helps them grasp better insight into the business structure and run the franchise smoothly. This way, the franchiser gets to know about the tactics of running the business. Also, marketing for the business is done in an excellent way, and so the franchiser does not have to worry about marketing the business. These days, social media channels are helpful to use big brands in marketing.

What are the steps required to start with the Subway franchise business?

Ask for franchisee voucher

First, you have to request for franchise voucher. Through this, you get to know about vital details relating to the business. Franchiser has to fill up necessary details in a form. The company will contact you to make certain verification. Therefore, you should enter the correct details in the application form.

Submitting the application

  • After filling up the application form, you have to submit the same. The application form contains different sections, and in the first section, you have to enter details like your name, tax number, house number and others.

  • In the second part, you have to enter personal information such as an address, details of citizenship, date of birth and other relevant information.

  • The third part of the application shall contain education details of the franchisor. After this, the business details will be given in the third and fourth part of the application.

  • Following this, in the fifth part of the application form, you have to provide your income-related details along with bank details. This will be required to check whether you are capable of opening the business or not.

  • After this, you have to provide information on the location where you wish to open the franchise. This part will also contain details about the investment required in opening the business.

However, in the remaining part of the application details of restaurant operations, area of the restaurant, investor details, disclaimer and signature information is given. So, you should provide relevant information in the application form before you submit it.

What is the role of local development agent?

When planning to start the franchise business, you have to first talk with subway agent to know about details of the application process. Some more steps in applying for a franchise business is given in the following part of the article.

Conduct thorough research

Only after conducting thorough research and knowing about the condition of the market, you should start with the franchise business. Also, you need to know about market value before you start the business. 

Secure funds for business

This is one of the vital things to consider when starting with a subway franchise business. You should have an adequate source of fund that shall help you to run the business smoothly. As the risk factor is high in this kind of business, try to know about the ways in which you are come out of the risk problems of the franchise. This way, you can reduce the chances of losses in your business.

Sign business agreement

Before starting the business, both the franchiser and higher authorities from Subway should sign in the Franchisee disclosure Document. Here, the terms and conditions of the business are mentioned. In addition, the fees charged by the company to the franchiser are also mentioned in detail in the agreement paper.      

Attend training for starting the business

Every individual planning to open a franchise business with Subway is given training before they start the business. They have to attend a training program that takes place at the Subway headquarter of Subway. This way, the trainee can get confidence in the business they start. A total of 53 hours of training is given to the individual, and only after knowing about the business tactics, the individual can open the franchise business.   

Choose a secured location for business

This is also important when starting the business as you can run the business smoothly in a secured location. Also, common people should be able to locate the place easily. So, it is advisable to open the franchise shop in the middle of the market. This way, more people will get to know about the franchise and visit it. This way, by deciding the correct location, you can grab the attention of the target group of customers easily.  

Celebrate the opening of a franchise store

On the inaugurating day of the franchise, try to provide free food items to visitors. Other than this, you can organise a special opening party on the first day as a means of promotion.

How much cost is involved in the franchise business?

When planning to open a Subway franchise in India, you should have a fund of about rupees 50 lakh to 65 lakh rupees. In addition to this, you will be charged franchise fee, and for this, you have to pay near about rupees 6 lakh or so.

Among the costs involved in a franchise business, the promotional costs and royalty costs are also considered. The Subway franchise pays 12.5% tax, and from this 8% is paid for royalty fees, and the rest 4.5% goes for advertising.

How can a Subway franchise business earn profit in India?

In a food business, individuals can earn good money. But the profit of business depends on marketing, promotion and quality of food that you provide. It also involves the factor of the location where the franchise is located. However, the average income of the Subway franchise every month is near about rupees 20 lakhs. There are some that can earn near about rupees 3 crores within a year. The margin of the business depends on how much you can earn from the business. So, you should know business tactics well before you start earning.

What are the ways to contact Subway franchise business in India?

For getting a Subway Franchise, you have to contact in its Gurgaon office. You can also call up the company directly and know about how you can get the franchise of the business. In addition, you can also mail them.

How to get a license and permission for a franchise business?

When planning to start the Subway franchise business in India, you should op for license and permission from the Indian Food Ministry department. Also, you should get permission from the state government. This should be done on the basis of Shop Establishment Act. So, for starting the business, you have to get NOC from municipality authorities. By doing this, you can get a GST number that can be used in the franchise business. After you opt for registration and get certificates of the franchise business, you can run the business hassle-free.

Precautionary measures in the business

One of the important precautions to be taken in this business is that you have to maintain the quality of the food. Along with this, you have to maintain quality service to customers. Any faults in the business will have a negative impact on the brand name.  

You should start with Subway franchise business only after having adequate fund storage for it. Also, you should have proper knowledge about the market along with business tactics. These will help you run the business without any interruptions. By using proper business strategies, you can earn better than what you invest in the business.

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