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.
You cannot buy stock in Subway because it is owned by a private firm (Doctor’s Associates). However, you can invest in other large restaurant companies.
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.