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Franchise Land Stories: Subway

In 1965, a man by the name of Fred Deluca borrowed $1000 from a friend by the name of Peter Buck to start a sandwich business in Bridgeport, Connecticut, in order to pay for his medical school tuition. Pete’s Super Submarine was the name of the store, and a holding company was established a year later to oversee the store’s growth. The holding firm was given the name Doctor’s Associates. In 1968, these two individuals came up with the moniker Subway. Subway is a restaurant chain.

Fred DeLuca, founder of Subway, on his seven business lessons | The Independent | The Independent

The two men’s enduring business partnership and the high-end, made-to-order sandwiches, which gained widespread attention, were the keys to their success. Despite the brand’s increasing popularity over the years and decades, it continued to hold true to its essential ideals and principles. The first franchised store debuted in Fresno, California, on the West Coast, in 1978. By creating a location in Bahrain in 1984, the subway recognised an opportunity in the global market.

Up until 2015, Deluca was the CEO, however he passed away from pernicious leukaemia. Before he went away, having battled leukaemia for more than two years, he transferred his post to Suzanne Greco.

Biography of Subway Founder Fred DeLuca

Thus, the concept of starting a submarine sandwich shop to pay for school fees, which was launched with a meagre investment of $1,000, has seen this enormous success in the United States as well as throughout the world by becoming the most franchised outlet in the States and the most sought-after getaway snack store globally.

With 26,744 outlets in the United States, Subway has continued to enjoy unmatched success in its business even after DeLuca’s passing, surpassing the enormous McDonald’s. The most popular restaurant in the country is now called Subway, and it has been on Entrepreneur’s list of the top 500 franchises since 2007.

The business has continually reimagined itself, adding a few new elements that appeal to customers in this generation and age. A definite advantage are additions like the layout of the store, USB connections at the tables, menu cards, gluten-free bread, self-order kiosks, etc.

The Marketing Approach

When it comes to promoting their high-quality goods, Subway has always been at the top of the game, setting a high standard for its rivals. They realised early on that they needed to promote their goods, and their main focus has been on tasty, healthful quick food that doesn’t harm the body. The company’s name is connected with wholesome munchies. No other fast-food company has been able to market its products as being healthy for the body.

The choice of their advertising heroes, such as athletes, NFL players, and others, is where Subway’s marketing brilliance truly shines. The fact that KFC or Mc Donald’s can never compete in that way makes Subway stand out from its rivals for a long period. Subway’s logo hasn’t undergone much change since DeLuca created it to launch the business. Consumers are starting to develop an itch for something sophisticated, poised, and reliable. Apart from being routinely praised as the healthy snack corner, a food brand can only hope to be associated with these companies.

The Subway Franchise

The tables in the middle of the floor - Picture of Subway, Portland - Tripadvisor

The pair began to realise in 1974 that they might not be able to meet their goal by the deadline. It was getting difficult for them to achieve their lofty goals when they set a target of opening 32 locations when they had only been able to open and operate 16 subway stores across Connecticut. To increase their reach and draw in the most customers, they therefore considered franchising the Subway brand. Since that time, franchising has persisted, and franchises are chosen, trained, and regulated so that customers can always catch a glimpse of the Subway brand.

Future plans


The largest submarine sandwich shop in the world, according to Subway, is a source of great pride. The subway is a well-known brand that is connected with savoury and healthful food both in the United States and around the world. There are currently 44,000 subway locations worldwide, both franchised and company-owned. About 26,000 of these 44,000 establishments are found in the country itself. For families looking for quick, filling, and delicious meals, Subway is a one-stop shop.

Fred DeLuca had a strong vision for the future of the Subway brand and was confident in the strategy, course, and result. All of the employees, franchisees, owners, and management of the Subway brand share Fred’s passion for the submarine sandwich shop that serves great, made-to-order sandwiches. The subway community is led along the best and most efficient road for constructing brand value by their sheer will, enthusiasm, and plans. Subway is driven to give the industry of wholesome fast food a new future.

An engineer by qualification, Gaurav started his career in sales and marketing due to his affinity towards networking with people. After learning the tips and tricks of the trade, he made a fresh start as an entrepreneur in the franchising industry back in early 2018, with a vision to bring order and transparency to an unorganized sector. He founded and spearheaded Frankart Global Private Limited, where he consulted, developed, and scaled more than 120 domestic and international brands all over India ranging from different industries such as food & beverage, beauty & wellness, and FMCG retail to name a few. Post-Covid, in mid-2021, he developed FranDocX, India’s first ready-to-use franchise documentation service portal, for the MSME entrepreneurs who were severely affected by the pandemic, and wanted to avail an affordable franchise solution service. His aim is to regularize ethical business practices in the franchising sector so that a greater number of investors can participate and avail the benefits of a structured franchise framework.

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