Subway Franchise Business Profit in India

Introduction to Profit in Subway Franchise Business in India (Cost to Start)

The fast-food business is increasing at a fast pace and traders are gaining good profit from it. Other than this, starting a restaurant or a cafe is also worthwhile. Food franchises are also thriving well in the market, and among all, Subway stands as the top among franchise companies.

A Guide to Subway Franchise Business in India

The subway franchises are starting in large numbers in India, there are around 353 stores. Therefore, Subway has become a famous brand, and so, traders are planning to get subway franchises and open business. However, the Subway franchise is analogous to the KFC Franchise and McDonald’s franchise.

History about Subway  

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 starting stage, Fred borrowed $1000 to avail of a loan of 65 thousand rupees. With this, he started his sandwich shop that shaped into the world popular ‘Subway.’

The 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 popular one. Apart from this, salads and pizzas are worthy of tasting from Subway wherever you go, the shop in the world.

Details about the Subway Franchise

Franchise businesses are offered by Subway throughout the world to let franchisers open a branch of Subway and expand its business. To start with Subway’s franchise business, one has to take permission from Subway. With this, the franchiser will be provided the approval to use Subway’s brand name along with a set of food products. Also, it shall aid the franchiser in detail about the food recipes. However, the Subway will provide all its tactics and recipe of a food item by obtaining fees from the franchiser.

Market Potential for Subway Franchise Business in India

Massive growth in the business

As you start the business being a franchiser, you will be a part of this chain. In the whole world, it is known that all franchise workers work together, and hence, it becomes easy to deal with the franchisers. However, the franchisers altogether will contribute to the worldwide growth of the brand.

Unique food items in menu card

The popularity of Subway is because of its delicious sandwiches, salads, and other foodstuffs that it provides. The foods have gained admiration throughout the world. One unique feature of Subway is that it switches to changing food tastes based on customer feedback. This way, Subway restaurants can simply get the responsiveness of the target group by adapting to their desired taste.

Supportive network all around the world

Subway provides outstanding support to its large network of employees. The support is stretched even to the ones who have just begun with a franchise business under Subway. Apart from this, the workers will be provided with training on each minute aspect. These will support in expanding the business and aid in its growth.

Marketing strategies, promotion, and training

While starting the franchise, Subway makes preparations for imparting top-notch training. This helps them clench better insight into the business pattern and run the franchise feasibly. This way, the franchiser will know about the strategies of running the business. Also, advertising for the business is executed excellently, and so the franchiser so not have to worry about promoting the business. These days, social media channels will be very helpful to use big brands in marketing.

Procedure to Start a Subway Franchise Business

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Procedure to Start a Subway Franchise Business.
Procedure to Start a Subway Franchise Business.
Get the Franchisee Voucher

First, you must request for franchise voucher. Through this, you will know significant details related to the business. The franchiser has to fill up the required details in a form. The company will approach you to make specific verification. Therefore, you must enter the accurate details in the application form.

Submitting the Application

After filling up the application form, you should submit it carefully. The application form contains various sections, and in the first section, you must enter details such as your name, house number, fax number, and other useful information.

In the next part, you should fill personal information like address, details of citizenship, date of birth, and other associated details.

The third part of the application must have educational qualification-related information of the franchisor. After this, the business details will be provided in the third and fourth parts of the application.

Following this, in the fifth part of the form, you must provide your income-based details along with bank information. This will be necessary to check whether you are eligible for opening the business or not.

After this, you should provide information on the location where you desire to open the franchise. This section will also include details about the investment needed in starting the business.

However, in the residual part of the application details of restaurant actions, the region of the restaurant, investor information, disclaimer, and signature information is provided. So, you must provide relevant details in the application form before its submission.

The Role of a Local Development Agent

When thinking to start the franchise business, you should first talk with the subway agent and know about the specifications of the application process. Some more steps while applying for a franchise business is provided in the following section of the article.

Conducting Market Research

Only after doing detailed market research and knowing about the situation of the market, you must start with the franchise business. Moreover, you should get the information regarding the market value before you start the business.

Getting Funds for Starting a Subway Franchise Business

This is one of the important things to arrange when starting not only a subway franchise business but also for any business. You must secure an adequate source of funds that shall support you to run the business easily. As the risk factor is high with the kind of business you have opted, try to know about how can overcome the risk problems of the franchise. This way, you can lower the possibilities of loss in your business.

Signing Subway Franchise Business Sgreement

Before beginning the business, both the franchiser and higher authorities from Subway must sign in the Franchise Disclosure Document. Here, the terms and conditions of the business are stated. The fees charged by the company to the franchiser is also included in detail in the agreement paper.      

The Training Sessions for Starting a Subway Franchise Business

Every individual who desires to open a franchise business with Subway is provided with training before they initiate the business. They must attend a training program which is provided at the Subway headquarter of Subway. This way, the trainee will attain confidence in the business they start. Approximately 53 hours of training is provided to the individual, and only after knowing about the business strategies any individual can start the franchise business.   

Area or Location for Starting Subway Franchise Business

It is very essential to open the store in a secured location as you can run the business without any havoc. Also, common people must route there comfortably. So, it is recommended to open the franchise shop in the center of the market. This way, more people will be aware of the franchise and will regularly visit it. This way, by selecting a proper location, you can attract the target group of customers effortlessly.

The Opening of Subway Franchise Business

On the inaugurating day of the franchise, attract the visitors by providing free food items. Additionally, you can organize a special opening event/ program on the first day for publicizing the store.

Investment to Start a Subway Franchise Business in India

If you start the Subway franchise in India, you must keep about rupees 50 lakh to 65 lakh rupees. Besides this, you should pay a franchise fee, that could be somewhere around 6 lakh or so.

Among various expenses in a franchise business, the marketing charges and royalty fees should be considered. The Subway franchise should pay 12.5% tax, and from this 8% is paid for royalty fees, and the rest 4.5% is used for advertising.

Profit Margin in Subway Franchise Business in India

In a food business, individuals can gain good income. But the profit of the business is mostly based on marketing, promotion, and food quality that you serve. It also depends on the factor in which area the franchise is set up. However, the average money of the Subway franchise monthly could reach about rupees 20 lakhs. If you take for a year, chances are there to earn near about rupees 3 crores. The margin of the business is based on how much you could gain from the business. So, you must be aware of business strategies well before you start getting income.

Contact Details to Start a Subway Franchise Business in India

For acquiring a Subway Franchise, you approach the Gurgaon office. You can also reach out by contacting over the phone directly and know how to seek the franchise of the business. There is also a possibility to contact them through email.

License, Registration, and Permission Required for Subway Franchise Business

While thinking to start the Subway franchise business in India, you must opt for a license and permission from the Indian Food Ministry department. Also, you should take permission from the state government. This should be done based on Shop Establishment Act. So, for beginning the business, you must get NOC from municipality authorities. By doing this, you can avail GST number which can be used in the franchise business. After you apply for registration and acquire certificates of the franchise business, you can operate the business in a hassle-free manner.

Precautionary Measures in the Subway Franchise Business

One of the important measures that should be taken in this business is that you have to take care of the food quality. Along with this, you must maintain proper service to customers. Any negligence in the business will pose a negative impact on the brand name. 

You should begin with the Subway franchise business only after having sufficient savings in the backup. Also, you must gain proper knowledge about the market along with some business strategies. These will aid you to run the business without any disturbances. By using proper business tactics, you can gain better than what you invest in the business.

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