Subway, which opened its first restaurant in 1955, now has over 26000 locations in the US and over 44000 locations in over 100 nations, making it the globe’s largest fast-food chain by the number of locations.
Franchise Business Model: Investing in A Subway Franchise
An investor must pay $15,000 in cash to own a Subway franchise in the United States or Canada. Depending on the type of location, the estimated cost of opening and operating a Subway shop for the first three months range from $100,050 to $342,400.
Subway is privately held and has not issued stock; hence, it does not have a stock price or ticker on any exchange. Subway’s management has more control over the company because it does not issue stock.
Starbucks Corporation (NASDAQ: SBUX) is one of the most profitable franchises in the world. In the fiscal fourth quarter, Starbucks made a net profit of $1.76 billion, or $1.49 per share, increasing from $392.6 million, or 33 cents per share, in the previous year.