Thursday, September 20, 2012

Jessica Ritacco blog #2


   Subway is one of the most well-known sub shops today, it is a franchise that tends to do very well. The fact that the Subway franchise stores are all very popular and do well is what makes the idea of owning one very appealing to people. Subway commercials are all over the television and I have even heard some advertisements over the radio. It is a very popular food chain and a great way to make money.
   Each Franchise is expected to pay an 8% royalty to the main company for using their brand name and their supplies. The startup fee for a Subway is depends on the size of the building and the location. However it usually falls between $100,000 and $150,000 to open a Subway Franchise. The headquarters offers support from the time Subway is franchised all the way through the process of opening, until and if the store closes down. Each store has a system in place from HQ to help each and every store run efficiently.
     The subway franchise plays a huge role in each store. Each manager and designated person go through a two week training course to teach them how to properly run the store. At the opening there is a rep from headquarters there to make sure everything runs smoothly. Each store is provided with access to all the formulas and employee training and operations manuals. Also each store gets informative publications from HQ occasionally letting each store know about any new items or changes.
     The store owner however, is responsible for all hiring and firing done at theit location(s). Also each franchise is responsible for staying up to date with menus and equiptment, headquarters does not provide these things. Each owner is responsible for keeping their franchise going and if they fail the headquarters has no responsibility to the franchise to help them at all.

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