Subway, the name most likely associated with sandwiches is one brand which can be franchised especially if you have plans to enter the F&B market because of its low cost startup and good profitability.
Among the fast food franchises in the world, Subway stands among the top. To this extent, Subway is actually the largest where it is operating in more than 110 countries worldwide. Within these countries, Subway is present in more than 44000 locations. In Malaysia alone, there are almost 200 Subway outlets. If you have been a fan of Subway sandwiches and has the knack to start your own outlet, then this franchise could well be your best decision.
Why Subway Franchise?
Offering fresh and healthy meals, Subway is known for its submarine sandwiches. Besides that, its salads and other snacks are extremely popular with its customers as well. This business is one of the most recognized brands in the F&B industry for its simplicity and variety. It offers 7 subs with fats below 6 grams. This makes Subway’s food to be very healthy which is very much demanded among consumers in present day.
What makes Subway such a successful name among consumers is that there is no cooking involved and it is easy to operate. If you own an outlet, it makes this very easy because it is small and requires very few manpower. In other words, all you need is an area of about 300 square feet and you are ready to go. It is in the quality and the concept that customers can customize their sandwiches that make Subway such a hit with their customers.
Offering a wide range of Halal sandwiches, Subway can be run from practically any states within Malaysia. To start this business, the average start up cost depends largely on your location. As mentioned, anywhere from 300 square feet would be sufficient. That is where you will need about RM300,000 to start. The larger your space, the higher the cost would be.
To start this business, the franchise fees is about RM36,000. On top of that, you need to pay 8% royalty from your sales and an additional 4.5% for advertising and promotions. This makes franchising Subway one of the lowest in terms of costs and startup capital. For an international brand like Subway, this is truly a sound investment considering that it is far lower than the likes of McDonalds’ and other global brands. Remembering that this is one business that does not need a lot of manpower, managing is a lot easier and more efficient.
Once your application is approved, Subway will train you in terms of running your own outlet. This includes buying the right equipment for the business, training of staff and food preparation. On top of that, you will be trained on operations, cost planning as well as sustaining the business. As this is a franchise business, advertising and promotions are done by the master franchiser.