Everything you need to know about getting onboard the largest individually franchised QSR family in Asia Pacific.

1. Subway® is a registered trademark of Subway IP LLC. © 2018 Subway IP LLC.
Franchise Opportunity
Seminar – Asia Pacific

2. Introducing
the Subway®
brand

3. History
• Founded by Dr. Peter Buck and Fred DeLuca
• First restaurant opened in Bridgeport, CT 1965
• Started franchising 1974

4. The Subway® brand is family
owned;
its shareholders are deeply
committed to its success
Its shareholders are committed to
continue to invest in the company
Long history of support for
franchisee profitability
Willing to inject cash into the business
(including significant support during COVID)
Committed to leadership excellence

5. Former CEO, Burger King
Former CEO, Avis
Former CFO, PepsiCo World
Trading Co
John Chidsey
Chief Executive Officer
Subway has a world-class leadership team
David Henry
VP, Business Intelligence & Analytics
Aidan Hay
VP, NA Operations
Robin Seward
SVP, Marketing Strat. & Planning
Former SVP, Coffee Bean & Tea
Leaf
Former VP, Pizza Hut
Former Director, Taco Bell
Former CMO, Schlotzsky’s
Former CMO, Rita’s Italian Ice
Former VP, Arby’s
Former Director, Carrabba’s
Former Director, Burger King
Former Director, Ryder
Former EVP, Zimmerman
Advertising
Former VP, Burger King
Carrie Walsh
Chief Marketing Officer
William McCane
VP, Global Development
Former CMO, Pizza Hut
Former SVP Marketing, Michaels
Former Sr. Director, PepsiCo
Former VP, Tim Hortons
Former Sr. Director, Burger King
Ben Wells
Chief Financial Officer
Former CFO, Burger
King
13 years at Subway
Former Chief Business Dev.
Officer
Trevor Haynes
President, North America
Former President,
Carrabba’s
Former CMO, Burger King
Mike Kappitt
Chief Op. & Insights
Officer

6. Subway®
APAC

7. APAC leadership team
Maiyo Hood
Country Director – Greater China
Former Director, YUM Brands
Former Managing Director APAC,
GoIndustry DoveBid
Samad Shariff
Country Director - SEA
CEO, A&W Malaysia Sdn Bhd
Director of Operations, Burger King
Malaysia
Colin Clark
Country Director - Korea
13 Years at Subway
LG Electronics
Jun Tsunoda
Country Director - Japan
11 years at Subway
Former General Manager
Cooperate planning
Geoff Cockerill
Country Director – ANZ
Extensive executive leadership experience
across blue chip companies such as Diageo
and Kirin. Worked with Global Brands
including Johnnie Walker, Smirnoff, Corona
across FMCG and Beverage categories
Eric Foo
President, APAC
Former COO, Coffee
Bean & Tea Leaf
EVP OF American
Dairy Queen
Mandy Mak
Regional Marketing
Director – APAC
4 Years at Subway
Prior Experience:
Brand management and
marketing leadership
roles at General Mills,
Fonterra and P&G
Johnson
Yohannan
Regional Operations
Director – APAC
Franchising, APAC,
Bloomin’ Brands
Former Sr. Director, Pizza
Hut Thailand
Former Country Director,
YUM Brands, Pacific
Islands
Samantha
Zietsch
FSQA Director –
APAC
Extensive food safety
and quality management
across retail and airlines
companies such as
Arnott’s Biscuits, Gate
Gourmet, Woolworths
Supermarket and HACCP
Australia.

8. APAC Restaurant
Development
Australia 1200+
Mainland China 500+
South Korea 400+
New Zealand 250+
Malaysia 240+
Japan 190+
Taiwan 130+
Singapore 130+
Thailand 70+
Philippines 30+
Hongkong/Macau 20+
Guam 18
No. of
Locations
Countries
Over 3300+
restaurants across
APAC region and it
will not stop there!

9. The potential of APAC market
Fast food market is growing from 140+ billion
USD market to 210+ billion USD by 2025. At
5+% YOY market growth.
The trend is moving towards customizable and
healthier options across APAC markets
APAC region is the second largest region for
fast food market after North America
Subway is moving in to triple the number of our
development by 2025

10. Why
Subway®?

11. Subway® restaurants have a
low-complexity operating model
Custom designed
floor plans to fit
any space
No-cooking-
necessary
operation
On-going
operational
support
Adjusting
staff
levels
Small space
requirements, low
installation costs

12. The Subway® concept
• Sandwiches made to order
• Offering dine-in, take-out, curbside and delivery
• Fresh baked bread
• Simple operations – no cooking or frying
• Restaurant Systems to Assist in Daily Operations
• Online Ordering App and Loyalty Program
• Best in Class Training – in person and e-learning
• Global, Regional and Local Support system
• Low investment
• Fresh New Décor
• New and Existing locations available

13. Note: Actual initial investment costs may vary
Source: Franchisee Direct, company websites
Initial Investment
Estimated average initial investment to open a franchise
Subway® has one of the lowest upfront investment requirements
in QSR
~1M
~2M ~2M ~1.5M ~1.5M
~0.3M

14. Our brand
strategy

16. Why Subway®? System Support

17. A Business Development Agent (BDA) model drives field support
Franchise World Headquarters
Franchisees
Business Development Agents
Create territory-
level plans
to grow Subway
market share
within their region
Manages physical
footprint and
portfolio within
territories
Provides
franchisees in
their territories
with
tailored coaching
Growing market share
Managing physical
footprint
Driving operational
excellence

18. Restaurant supply chains are powered by an independent,
franchisee-owned purchasing co-operative
IPC members receive dividend checks each year based on purchases made:
Since 1996 we have given back $1 BILLION to franchisees
Committed to quality High service levels Guaranteed low costs
IPC follows Doctors’ Associates LLC’s
strict Gold Standard Specifications,
purchasing only top-quality products
that meet or exceed current federal
food safety guidelines
With 77 distribution centers in North
America, IPC gets you
what you want when you need it
IPC-authorized service companies
have agreed to IPC’s set pricing and
high service standards: initiate service
tickets from IPCcoop.com
IPC performs audits monthly to
ensure your distributor is being
charged the correct price from the
manufacturer and that you, in turn,
are getting the lowest possible prices
Save on replacement equipment parts
through IPC parts express to help you
avoid costly repairs

19. Subway® Fresh Forward
Where taste and technology come together!

20. We have developed a low-cost remodel package: exterior, service area,
customer area, and restroom all for around $20k in materials.
Franchisees have committed to remodel 10,000+ stores

21. Different formats for different investors
Lowest
investment
Highest
investment
Convenience
store
Shopping
center
Drive
thru
End-cap
Transport
Hub
In-line Standalone
Express
Kiosks

22. …and are exploring ways to grow revenue in new places and spaces
where others can’t compete
Branded program
designed to
increase sales in
existing accounts by
selling pre-made
sandwiches
Grab & Go
Grow sales in
existing accounts
by adding an
Express Kiosk –
able to serve install
in existing locations
Express Kiosks
Fit into areas where
most brands can’t.
Vending Machines
Partner with offices
in hyper-urban
areas to deliver
product
Office Outposts Branded Vehicles
Enhance catering,
support Grab & Go
execution and
increase local
branding with a
refrigerated vehicle

23. Investment
& Initial
Requirements

24. Estimated Initial
Investment
Roughly 150k USD
– 200k USD
includes 20 years
renewable
franchise license
and training
expenses.

25. Investment flow – New franchise
Franchise fee Security deposit
for location
Equipment Order Renovations/
Build out
costs
Pre-opening
costs & Opening
Costs

26. Citizenship Requirements
For most countries in APAC,
we require local
citizenship/partnership with
local citizens.

27. Franchise Agreement
• Franchise Fees (USD)
- $10,000 - $12,500 Initial Franchise Fee
- $5,000 - $6,250 for additional franchise
purchases
• Terms of Franchise Agreement
- 20 years renewable

28. Royalties
Royalties - 8%
Advertising - 4.5%
• Allocation
- Overhead
- National
- Local
Royalties are paid on sales minus sales taxes collected

29. Financing
Franchise owners are to
engage their own financing
options. We encourage at
least 50% of the restaurant
investment to be in ready
liquid assets.

30. Before
your
opening day

31. • Franchise Owner
- Responsible for finding a location
• Company
- Provides training to identify potential
locations
- Responsible for approving the site
- Lease and sublease same terms as
Master Lease
Site Selection
Assistance

32. Restaurant placement
Factors we consider in evaluating sites
• Potential customer base/sales
• Traffic patterns
• Strong population back-ups
• Visibility
• Trade area cannibalization

33. Restaurant design
• Company provides
custom floor plans free
• Local laws may require
plans either redrawn or
certified

34. After lease is signed
Order
Equipment
Hire
Contractor Prepare to open
Order food and
supplies from
approved suppliers

35. Operations and
Support Structure

36. Support every step of the way
Operational Manuals
Our in-depth manual covers
a full range of topics important
to running your own business including
information on human resources guidelines
and training for your restaurant’s team
members. Operations Manual

37. • Proven control methods
• Developed standards
• System of controls
• Key Performance Indicators
• If you can’t measure it, you can’t manage it!
Operations

38. • Two weeks in one of our
Global/Regional Training Center
• “on-the-job” local restaurant
training
Training*

39. Continuing Education: You’ll receive full
access to The Feed, e-mails, and access to
our online training classes on the
University of Subway.
• Culinary Innovation: Our executive chefs,
baking specialists, and product
development team continually strive to
make our excellent food even better.
• Field Support: You will have regional
local support who will help you get
started and provide ongoing operational
and marketing support.
Support every step of the way

40. Conducting
your research
• How To Conduct Your Research
• Opportunities
• Questions to ask franchise owners

41. Franchise Disclosure
Document (FDD)
• Describes in detail how the
Subway franchise relationship
actually operates.
• Specifies how the company is
organized.
• Various programs we offer.
• Provides list of franchise owners.

42. Steps to purchase a new Subway® franchise
1. Complete Franchise Application
2. Receive Franchise Disclosure Document
3. Conduct Your Research
4. Meet with local Business
Development Agent
5. Receive a passing score on
the standardized test
6. Application evaluated for
approval
7. Receive approval from the FWH LLC
8. If approved purchase franchise
9. Site selection (New or existing)
10. Schedule training
11. Begin your
new career!
.

43. Non Traditional locations from A to Z

45. subway-franchise.com