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From 1 Shop to 44,000: How Subway Used Franchising to Build a Global Brand

franchise success stories Nov 11, 2024

Table of Contents

  • The Inspiring Success Story of Subway
  • What Makes Franchising a Powerful Business Model for Growth?
  • Key Lessons for Aspiring Franchisors
  • Is Franchising Right for Your Business?
  • Get Started on Your Franchising Journey Today
     

The Inspiring Success Story of Subway

In 1965, Fred DeLuca opened a small sandwich shop called Pete’s Subs with a $1,000 loan from his friend, Dr. Peter Buck. What started as a single store in Bridgeport, Connecticut, grew into the Subway franchise empire that we know today. Through franchising, Subway expanded to over 44,000 locations worldwide, becoming a household name in fast food and an inspiration for aspiring franchisors.

Fred’s journey showcases the true power of franchising to scale a business. His story, along with brands like KFC and Pizza Hut, provides valuable insights into how franchising can transform a small business into a thriving global network.

Did you know? I had the privilege of working with Fred on Subway’s international development team, helping expand the brand across five countries. This experience gave me firsthand insights into the world of franchising and business expansion.


What Makes Franchising a Powerful Business Model for Growth?

Franchising allows businesses to scale rapidly, attract new talent, and increase brand visibility by replicating a proven model. Here are a few reasons why franchising worked for Subway and can work for other businesses:

  • Scalability: Franchising allows for faster growth compared to company-owned expansion by leveraging franchisees' investment and commitment.
  • Brand Consistency: With proper franchise agreements and training, every location can maintain the same quality and standards, reinforcing brand loyalty.
  • Motivated Partners: Franchisees invest in the brand’s success, creating a network of motivated partners who are invested in their business.
  • Operational Efficiency: A streamlined system ensures each franchise can operate effectively, which is critical for multi-location consistency.

These benefits make franchising a strategic option for entrepreneurs looking to grow their business and expand their market reach.


Key Lessons for Aspiring Franchisors

Turning your successful concept into a global brand like Subway will not be easy. Here are some essential lessons for those considering franchising as a business model:

  1. Start with a Proven Model
    A scalable, repeatable business model is critical for franchising success. Document your processes and standards to ensure brand consistency across locations.
  2. Prioritise Franchisee Support
    Success in franchising relies on good support. Offer robust training, tools, and resources to empower franchisees and build a sense of community within your brand.
  3. Adapt to Local Markets
    Each new market presents unique challenges and opportunities. A flexible, adaptable approach to local preferences will increase your brand’s appeal and longevity.
  4. Ensure Brand Consistency
    Consistent customer experience is essential for brand trust. Create a detailed operations manual and uphold rigorous quality standards for all locations.

These lessons from brands such as Subway and other global franchises can help guide your franchise expansion strategy.


Is Franchising Right for Your Business?

Considering franchising? Here are a few questions to ask yourself:

  • Is Your Business Scalable? – A strong, scalable model is essential.
  • Do You Have a Clear Brand Identity? – A recognizable and consistent brand is key to franchise success.
  • Are You Prepared to Support Franchisees? – Franchising requires a commitment to franchisee training and ongoing support.
  • Do You Have the Flexibility to Adapt? – Expanding into new regions requires adjustments to local preferences and markets.

Subway, KFC, and Pizza Hut all started small but leveraged franchising to reach global recognition. If you’re ready to scale your business, franchising could be the right path.


Get Started on Your Franchising Journey Today

Franchising helped Subway grow from a single sandwich shop into a global brand. With the right tools, strategies, and execution, franchising can support the growth of your business and help you explore new markets. I created the "Convert Your Business to a Franchise" course, drawing from my experience in franchising and business development. This course includes a step-by-step guide to help you:

  • Assess your business’s franchise readiness
  • Develop a consistent brand model
  • Navigate legal and operational requirements
  • Support and grow your franchise network

Ready to begin your franchise journey? For just $170, you’ll access resources, insights, and strategies designed to guide you in building a strong foundation for your franchise franchising your business. Enrol in the course here to gain valuable tools, strategies and guidance for starting and developing your franchise network.


Final Thoughts

Expanding through franchising is about building a legacy and creating a network of motivated partners who share your vision. Whether you’re just exploring the idea or ready to make your first move, franchising could be the growth model you need to bring your business to new heights.

Your next step in your franchise journey is to see my free lesson here. If you've already seen it, then I strongly advise you to consider buying my online course...it will put you in the right direction. Check it out here

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