Thank you for your interest in the Subway System. We are the Subway Development Agent (DA) of Orange County operating as Grewal Foods, LLC. We are an independent contractor of Subway Corporate, responsible for development and maintaining Subway standards of quality in Orange County California. Below are frequently asked questions from people interested in becoming Orange County Subway Franchisees. Please review them to see if you qualify and understand that Subway financial requirements vary by market. Q. What are the minimum Financial Requirements to qualify? A. A minimum net worth of $500,000 and $200,000 cash. Q. I just received my offering circular after applying online, do I need to get anything notarized? A. No, we will notarize the documents when the process is completed and you purchase a franchise. Q. Does Subway offer financing? A. Financing is available from approved Subway vendors. Q. How much money can I expect to make? A. Franchising law prohibits all franchise concepts from answering this question Profitability will depend considerably upon the franchisees ability to manage the day-to-day operations and finances as well as factors specific to each location such as occupancy, costs, labor costs and the potential for sales. We invite you to speak with our current franchisees to learn about their sales and profit numbers, as well as other Subway experts Q. What are the Royalty and Marketing Fees? A. Royalty is eight (8%) percent of your gross sales, which must be paid on a weekly basis. Marketing is an additional four and a half (4.5%) percent fee is collected for advertising and marketing. Both are paid on a weekly basis. Q. I am currently living out of state/area and want to be a franchisee, can I buy a store in Orange County? A. You must live in the area to become a franchisee in Orange County. Q. Does Subway have to be my full time job? A. Yes, we require franchisees to work at their store. It is preferred you live no
more than 30 minutes driving distance in heavy traffic from the location. Q. Will I have an exclusive territory? A. Subway offers no area of exclusivity. Subway does review population radius and conducts site surveys. Q. How are Subway leases handled? A. Subway negotiates the lease, signs the master lease, and gives the franchisee a sub-lease. Q. How much training is provided before I become a franchisee? A. You will be required to attend a total of 4 weeks training (2 weeks training in Southern California and 2 weeks training at Subway World Headquarters in Milford, Connecticut). This initial training will focus on various aspects of you restaurant and include both classroom and on-the-job training. We provide this training to you as part of your Franchise Fee.
Q. What form of continued operational guidance will I receive? A. You will receive Subway’s Operation Manual which covers the many
important aspects of your business operation. As manuals are updated, revisions will be sent to you. You will also receive a monthly visit from one of our Business Consultants, who will consult you, make best practice recommendations, and offer useful advice, and counsel you on your operations.
Q. What is my next step if I want to begin the approval process? A. If after reviewing the qualifications on this sheet and feel you have the
potential to join the SUBWAY SANDWICHES Franchise System, you will need to email Jocelyn Fusaro at jfusaro@grewalfoods.com to schedule a time to take to take the required math and english proficiency tests. Q. How long does the transfer process take? Once you are an approved franchisee and have a valid purchase agreement A with the store you would like to buy, it takes approximately 10 to 12 weeks to complete the transfer.
.
Q. Can I open a brand new Subway Restaurant? A. New franchisees are required to purchase an existing Subway location.