NUMBER ONE FRANCHISE *

Transcription

1 GET ON BOARD WITH THE WORLD S NUMBER ONE FRANCHISE * *SUBWAY is the number one QSR brand by total store count (as at January 2014) Doctor s Associate Inc. SUBWAY is a registered trademark of Doctor s Associate Inc.

2 MORE THAN 42,000 SUBWAY LOCATIONS THROUGHOUT THE WORLD USA and Canada 29,000+ stores Europe 4,300+ stores Asia 1,800+ stores Latin America and South America 2,900+ stores Middle East and South Africa 400+ stores Australia and New Zealand 1,600+ stores

3 WORLDWIDE BRAND PERFORMANCE The first SUBWAY store was opened in 1965 by Fred DeLuca and Dr Peter Buck. It was the first of over 42,000 locations in more than 105 countries. Today, in the UK and Ireland alone, there are more than 1,800 locations. The SUBWAY brand is the Number One Quick Service Restaurant (QSR) brand worldwide by total store count, as at January The first SUBWAY store opened in the UK in Since then the SUBWAY brand has grown at an exceptional rate and continues to expand we are actively seeking new franchisees to become part of the success story. 43,000 * 40,885 35,769 38,351 32,199 33,749 30, *Projected growth Worldwide franchises growth chart

4 OUR COMMITMENT The SUBWAY brand is committed to making a positive impact in everything it does from providing great tasting food choices, to reducing its carbon footprint and creating a positive influence in the communities it serves around the world: l We encourage SUBWAY franchisees to contribute to their communities, promote diversity and environmentally friendly options and business practices l Focus our sustainability initiatives on energy efficiency, water and resource conservation, waste reduction, sustainable sourcing and supply chain management The SUBWAY brand is a nutritional leader in the QSR industry. To date the SUBWAY brand has endorsed all six of the nutritionrelated UK Government s Responsibility Deal Pledges, committing to: l Reducing salt l Reducing saturated fat l Eliminating trans fats l Displaying calorie information on menu boards l Reducing calories across the product range l Improving access to fruit and vegetables as part of a healthy, balanced diet l l Ensure our food meets the highest quality and safety standards Find sustainable and cost effective solutions that service the business needs of our franchisees For more information about the SUBWAY brand s commitments visit

5 CHOOSING AND BUILDING YOUR STORE It is the franchisee s responsibility to find the location of the franchise; however SUBWAY Development Agents and Subway Realty Limited are on hand to help. The décor of a SUBWAY store is in-keeping with the brand s values, ensuring the stores are inviting and comfortable for customers. The décor integrates natural building materials, comfortable furniture and careful lighting to create a warm, inviting, family environment. As a franchisee, you will receive assistance with your store design and equipment ordering. GREAT PRODUCTS SUBWAY Sandwich Artists use a variety of breads freshly baked in-store daily, and an array of meats, cheeses, salads, vegetables and sauces to create tasty made-to-order Subs, flatbreads and salads. With a focus on making quality, delicious Subs and offering customers real choice, the SUBWAY brand has built up a vast and loyal customer base.

6 FOR ALL NEW SUBWAY FRANCHISEES, THE COMPANY PROVIDES: l l l l l l l Access to formulas and operational systems Store design and equipment ordering guidance Training programme Operations manual Representatives on-site during opening Periodic evaluations and on-going support Informative publications

7 GREAT TRAINING All new SUBWAY franchisees are required to attend a two-week training course in Cambridge ahead of opening their own stores. This intensive training programme provides you with an overview of operating a SUBWAY store and running a business, including classroom and in-store sessions. On completion of the training, franchisees are well-equipped to take the next steps in opening their own store. Similar training programmes are available for SUBWAY store managers as well. In addition to face-to-face training, the SUBWAY brand also runs the University of SUBWAY, a well-established online training programme coordinated by the worldwide headquarters in Connecticut, USA. Offering over 400 online courses for franchisees and store staff, the University of SUBWAY has brought on-demand learning to more than one million individuals, and has surpassed 15 million course completions since its launch in 2007.

8 SUPPLIERS AND EQUIPMENT European Independent Purchasing Company Limited (EIPC) is a non-profit making organisation owned by SUBWAY franchisees in Europe. EIPC was created by SUBWAY Regional Development Agents in 2001, to manage the purchasing and supply of food and equipment to SUBWAY franchisees. To date, EIPC has delivered over 147 million worth of benefit to SUBWAY franchisees across Europe. HOW WE MARKET YOUR STORE The aim of our marketing campaigns is to drive profitable sales for SUBWAY franchisees. SUBWAY franchisees in the UK and Ireland actively participate in the running of the Franchisee Advertising Fund (FAF). National and regional advertising boards, consisting of franchisees, are elected each year; it is their role to make marketing decisions and ensure franchisee funds are used to benefit all franchisees. SUBWAY franchisees pay a 4.5% advertising fee to the Franchisee Advertising Fund.

9 ON-GOING SUPPORT LOCATION PERFORMANCE Franchise World Headquarters prides itself on offering an excellent support network for all franchisees. The head office for the SUBWAY brand in the UK and Ireland is based in Cambridge, offering a local team of support staff focused on operations, R&D, leasing, customer service, training and franchisee services. Across the UK and Ireland we have a network of 20 regional Development Offices that are on hand to offer advice, support and guidance throughout the process of becoming a franchisee. Your local Development Office also provides continued support and mentoring once you have opened a SUBWAY store. Generally, the most important factors for performance are the location of the franchise and how well it is run. Because these key factors are unknown, SUBWAY International B.V. cannot predict your results. In fact, to eliminate possible misunderstandings, the company has a policy that no employee or agent can provide you with projections as to potential sales, earnings and profitability. SUBWAY International B.V., the franchisor, is a Netherlands-based limited liability company.

10 YOUR INVESTMENT The SUBWAY brand has some of the lowest start-up costs in the industry for a franchise of its size and stature. The total amount of investment will depend on the location, size and extent of any renovation work required. The estimated costs outlined on the right represent a wide range of possible locations. Remember that costs will vary in relation to the physical size of the store. A lower cost store is one that would require fewer leasehold improvements, less seating and fewer equipment expenditures. Higher cost stores may require extensive interior renovations, extensive seating and additional equipment. The figures listed do not include extensive exterior renovations. SUBWAY franchisees pay 8% royalties to the SUBWAY brand based on gross sales minus sales tax. A 4.5% advertising fee is paid to the Franchisee Advertising Fund. RE-SALES Another option for those wishing to buy into the SUBWAY franchise is to buy a re-sale store. On occasion, there is the opportunity for those interested in buying a franchise to purchase an existing store from a current franchisee. This can often result in lower set-up costs, as the store and all its equipment are often included in the purchase price. To find out more about any re-sale opportunities, speak to your local Development Agent. General breakdown for: Initial franchise fee... 8,500 Property acquisition fees... 3,500-10,000 Leasehold improvements... 20,000-80,000 (store fit out and service utilities) Equipment purchase cost... 30,000-70,000 (lease to buy optional) Security system... 1,000-5,000 (not including monitoring costs) Freight Charges... 2,000-3,500 Opening inventory... 2,500-4,000 Insurance... 1,000-2,000 Supplies ,000 Training expenses... 1,500 (including travel and lodging) Legal and accounting... 2,500-5,000 Opening advertisement ,000 Misc expenses... 2,500-4,000 (business license, utility deposit, small equipment and surplus capital) Additional funds three months... 10,000-25,000 (wages, training and rent) Estimated total investment ***... 86, ,500 ***These figures are estimates of the complete investment in setting up a SUBWAY store and operating it for three months. It is possible to exceed costs in any of the areas listed. Final costs will depend on matters including, but not limited to, location, amount of renovations required, type and size of premises and local laws.

11 NEXT STEPS Apply: Simply complete the application form included in this brochure or online at There is no obligation by completing the application form, it simply indicates your degree of interest and enables us to send you our disclosure document that includes more information about the franchisor. Development Office: Once your application has been submitted, you will be contacted by your local Development Office. Be sure to make the most of their skills, experience and knowledge because many Development Agents are franchisees themselves. SUBWAY Development Agents work to build franchise sales by building the SUBWAY internationally recognised brand. A Development Agent is an independent contractor who sees the big picture. The Development Agent develops a territory by helping franchisees own and operate SUBWAY stores in that territory. Research:: The SUBWAY brand encourages you to talk to other franchise owners to learn more about the brand and benefits. Ask them why they chose the SUBWAY franchise and spend time in stores to familiarise yourself with the store operation and managing a team of staff. Talking to other franchise owners can really help you understand more about the franchise, alongside the day-to-day operations, as well as speaking to customers about what they most like about SUBWAY Subs. A list of contact details for current franchisees is available in the disclosure document, which will be sent to you when we receive your completed application form. JOIN THE TEAM! It s as easy as that! Once you have finished your investigation and have secured approval to become a SUBWAY franchisee, don t wait. There is a world of opportunity waiting for you once you make your decision to join us.

12 PHILIP TOUT SUBWAY Franchisee Philip Tout owns and operates four Budgens convenience stores across the South West. Philip opened his first SUBWAY store, as part of a re-fit of his store in Cheddar, Somerset. Following its early success, Philip opened a second SUBWAY store in his Budgens in Nailsea, Somerset. We have been delighted with the way that the SUBWAY brand has complemented our existing c-store business in Cheddar and Nailsea, and are enjoying that it is attracting new customers into the stores. We have tried other food-to-go offerings in the past within our c-stores, but have found that SUBWAY stores provide the best option for customers wanting food and snacks made fresh in front of them. We re looking forward to developing our relationship with the SUBWAY brand further. The SUBWAY brand has complemented our existing c-store business... it is attracting new customers into the stores.

13 RAAJ TUTT SUBWAY Franchisee Raaj Tutt owns and operates a SUBWAY store at Crystal Peaks Shopping Centre in Sheffield. Raaj now employs nine full-time and two part-time members of staff. Running my own business had always been an ambition of mine and I was keen to get started in a secure environment, which is why I chose franchising. I moved from a marketing background into the catering industry, which was a huge diversion within my career path. Taking on the management of 11 staff and having the extra responsibility of being in charge of my own business was always going to be a challenge but I knew I was up to the task. At the beginning, I found myself working long hours, however the rewards and satisfaction gained from it were well worth it! I moved from a marketing background into the catering industry, which was a huge diversion within my career path.

14 RACHEL SHAW SUBWAY Franchisee Rachel Shaw owns and operates two SUBWAY stores in Thornton Heath and West Wickham, South London. With a wealth of experience working in the fast food industry, Rachel decided to open her first SUBWAY store and hasn t looked back since. I knew I had a good understanding of quick service restaurants, having worked in the sector for 16 years. I love the product and the fact that the operation is very transparent. It s clear to customers that the SUBWAY brand operates at a very high standard. I was intrigued by the brand after a trip to Australia in 2004 for a work conference the SUBWAY brand was everywhere down under! I was particularly interested in this franchise as I ve always been an advocate for healthy eating and it has great credentials in this area. I ve always been an advocate for healthy eating and the SUBWAY brand has great credentials in this area.

15 RACHANA PANCHOLI SUBWAY Development Agent and Franchisee Rachana Pancholi owns five franchises and is responsible for the SUBWAY brand development in Derbyshire and South Yorkshire. Rachana has previously won SUBWAY franchisee of the year twice in a row and is a busy working mother. At the SUBWAY brand you are given a lot of training and support as you set up your franchise, and afterwards on an ongoing basis. As a Development Agent for Derbyshire and South Yorkshire I have become part of that support system, working with franchisees to ensure they are getting the most out of their business. The high quality of training given to all new franchisees and the continued support from field consultants, development agents and access to online training resources and the University of SUBWAY all contribute to the SUBWAY brand being a world-leader when it comes to franchising. At the SUBWAY brand you are given a lot of training and support to set up your franchise, and afterwards on an on-going basis.

16 TESH PATEL SUBWAY Development Agent and Franchisee Tesh Patel comes from a retail background. Along with his two brothers, Tesh became a franchisee with the SUBWAY brand in 2000, and in May 2004 became a Development Agent. Tesh is now responsible for the brand s growth in line with consumer demand across much of the Thames Valley and East Midlands regions. The SUBWAY brand has developed a franchise system which is both efficient and effective. We work tirelessly to ensure that the transition for our franchisees is as easy as possible and that they head into their new ventures with confidence and the knowledge that they have a global brand backing them. The SUBWAY brand has built up the support and loyalty of millions of customers worldwide by offering great value products and a recognised health platform. New franchisees can rely on the fact that demand for our wide range of great value Subs and salads, including a Low Fat Range, is unwavering. New franchisees can rely on the fact that demand for our wide range of great value Subs and salads... is unwavering.

17 SUBMIT YOUR COMPLETED APPLICATION FORM IN ONE OF TWO CONVENIENT WAYS: Online: By mail: Subway Realty Ltd., Chaston House Mill Court, Hinton Way, Great Shelford Cambridgeshire, CB22 5LD, UK Subway Realty Ltd UK & Ireland Head Office Chaston House Mill Court Hinton Way Great Shelford Cambridgeshire CB22 5LD Tel (UK) Tel (Republic of Ireland)

18 *SUBWAY is the number one QSR brand by total store count (as at January 2014) Doctor s Associate Inc. SUBWAY is a registered trademark of Doctor s Associate Inc.