Case Study – Subway

Why become a Subway franchisee?

Track Record: 91% of franchises reporting profitability,
according to the 2008 bfa/NatWest survey.
Franchises are more likely to survive challenging economic times
than a completely new business
 
“The SUBWAY® chain’s franchise system has widespread
appeal. The low investment, simple operation and
unparalleled support make i it an attractive proposition for
entrepreneurs across the world,” says Neil Black,
Development Agent for the SUBWAY® chain.
 
The SUBWAY® chain is perfect for those that have had experience running a successful business, or
have benefited from a flourishing career. SUBWAY® franchisees benefit from operating in a tried
and tested system with great training and a solid support structure with aspects such as site
selection, leasing, purchasing, marketing and more.
 
Definitions

Franchise: A form of business in which a firm which already has a successful product or service sells
the rite to do business under the franchisor's trade name and usually with the franchisor help.

Franchisee: the person who buys the rite to do business from the franchisor.

Franchisor: the person who sells the right to use their business to the franchisee.

Questions:

1) Describe what Subway as a franchisor offers? It offers a tried and tested system with great
training and a solid support structure.
2) Describe the role of the franchisee To run the business to the best of there ability and be a
good representative of Subway.
3) List 5 reasons why you might want to buy a subway franchise
4) What are the advantages and disadvantages of being a fanchisee