FRANCHISING - MARKETING

Introduction
1. Why did you choose this franchise? (e.g. demographic/psychographic appeal)
I chose this franchise because to start off Subway is a place I love to eat at. Also Subway is known very
well nationwide. Having the opportunity of having a subway franchise would mean that I will be able to
gain knowledge about how to run a business, I will not have to go through it alone, by building this
franchise I will confident for generations, generate a lot of profit and lastly I will be able to partner up
with other companies slowly once my business gets going.
Name of Fee
Initial Franchise Fee
Real Property
Leasehold Improvements
Equipment Lease Security Deposit
Security System, but optional
Transport Charges
Outside Signage
Opening Inventory
Insurance
Supplies
Training Expenses (including travel & lodging)
Legal and Accounting
Opening Advertising
Miscellaneous Expenses
Additional Funds three months
Estimated Total

High
$15,000
$12,000
$134,500
$7,500
$6,000
$5,800
$8,000
$6,050
$5,000
$1,300
$4,500
$3,500
$4,000
$8,000
$42,000
$263,150

Financing
2. Using information from the franchiser,
calculate the total cost for starting the
franchise

Place
3. Describe exactly where your franchise will be located. Include any and all maps of the area/region,
population figures, etc., which support your decision.
My franchise would be located in Vancouver BC, because that is where most of the population is.

4. Explain why this location is best for your franchise. (e.g. large target market population, high
foot traffic).
This location is the best for my franchise because there is a nearby high school, park and University of
British Columbia. This will revenue a huge profit due to the large population. There is always high foot
traffic in Vancouver.
5. Summarize the real estate costs of starting a franchise operation in this location. If possible,
include exact costs.
The real estate costs of starting a new franchise would be a lot because Vancouver is a growing and
expensive city. Most of the franchises must have to pay over a million for a space to place their business.
It will be expensive, but the expenses will be paid off fairly quickly due to amount of people that will
come to the restaurant.

People
6. Give an in-depth description of the franchises target market, including a complete analysis of
the most important demographic and psychographic variables.
The target market is adults between the ages of 16 and 39. Overall most of the people of all ages enjoy delicious
and healthy sandwiches. Majority of the population lies in between these groups. Subways target market is
known as The youngsters who like to have nutrition food rather than pizzas burgers and fries.

7. What does your marketing research state about the breadth and depth of the demand for your
franchises product?
My marketing research states that Subway is in great demand when it comes to making healthy choices.
Mc Donalds might have a higher chance in getting more customers due to all the junkfood which
attracts a lot people, but Subway is great to have. People prefer Subway after games, exercise, light
dinner or even a cheap dinner out.

Competition
8. Describe where your competition is located in relation to your chosen location.
Where I have chosen my location I will many potential competition stores like Mc Donalds, Pizzeria,
Cafs and even A&W. The reason why my franchise is the best, is because it serves the healthiest
amongst the listed above, and in todays world a lot of people are health conscious.
9. Describe pertinent history related to the franchises market, product and competition. How is
your franchise different from the competition?

There are many food competitors, that deal with fast food, but Subway is a healthy and
convenient way to eat. There are not a lot of healthy known nationwide brands, Subway is the one of the
most known brands around the world regards the health business. Subway have changed their
sandwiches, and the layouts of their restaurants over the past few years.

Product/Price/Promotion
10. Give a comprehensive and complete description of the franchise brand name, logo, products, etc.
This should include both tangible and intangible features.

The original Subway logo was designed in 1968. It featured black, white and yellow colors, and was used till
2002. The new logo was introduced in 2002 with yellow and green colors and a slight change in the font which
perfectly matched their slogan eat fresh.
The first letter S and the last letter Y feature arrows which show the entrance and exit of a subway. The green
color used in Subway logo produces a great effect and plays a great role in convincing consumers that the
company is a healthy fast-food option as compared to KFC and McDonalds. The Subway logo is one of the most
popular and memorable food logos, with a very attractive, eye-catching and fresh look.
With a loan of $1,000, the friendDr. Peter Buckoffered to become Freds partner, and a business relationship
was forged that would change the landscape of the fast food industry.
The first store was opened in Bridgeport, Connecticut in August, 1965. Then, they set a goal of having 32 stores
opened in 10 years. Fred soon learned the basics of running a business, as well as the importance of serving a
well-made, high quality product, providing excellent customer service, keeping operating costs low and finding
great locations. These early lessons continue to serve as the foundation for successful SUBWAY restaurants
around the world

11. What wants and/or needs does the franchise satisfy? This should include a description of
extended product features, including values, emotions and images. Be specific.
For new franchisees, the SUBWAY System offers an equipment leasing programmer. For existing franchisees, the
SUBWAY System offers remodeling, relocation and expansion loans. Subway wants to bring customers into the
stores and keep them coming back! In other words, the SUBWAY Stores wants to make all potential customers
aware of its products, convince them to try it, and by providing good value, and great fresh food, turn them into
regular satisfied customers. They try to make sure they have the best prices, best ads and great customer service.

12. Describe what factors can impact the franchise products prices. Estimate your expenses.
The factors would be the sales have decreased for Subway, which would cause the product prices to
decrease to gain the customers back or the economy itself might have fell, which effects all businesses.
People might not have enough money to buy the food, due to money issues.

13. What role will the franchiser have in promoting the franchise?
Most of the promoting is done through Subway itself, but you can self-promote it around your store or
on social media to make more people aware of your franchise.