Franchising: Subway Bulgaria
1. History, activities, and the franchising characteristics of Subway Bulgaria Ltd
Entering the business
The experience, which Subway has on various markets around the world, proved that the master-franchise methodology is not beneficial for the brand. Master franchise means that when one person or company receives the rights for a franchise, he can operate on the territory of the whole country – to organize all training and marketing activities. On the contrary – Subway is using the development-agent method. The agent doesn’t organize the trainings but sends the future franchisee in specialized training centers. The course is obligatory for each franchisee and lasts 2 weeks. All expenses are to be covered by the franchisee.
Subway Bulgaria Ltd. was established as in November 2008, its executive manager, Ivan Todorov, was appointed at the position of development agent of Subway for Bulgaria. To receive the franchise Todorov’s restaurant in a mall in the city of Varna had to compete with just one other restaurant. He won the franchise and Subway opened its first outlet in Varna. The goal of Subway was to have at least 10 000 restaurants in Europe and at least 27 of them to start operating on the territory of Bulgaria in the next 7 years - by 2015. Before setting up Subway Bulgaria, Todorov has been working as manager of clubs, restaurants, immovable property.
Franchising conditions, and development of Subway Bulgaria Ltd.
The procedure to obtain franchising rights for Subway is simple. Subway Bulgaria gives franchise rights to other individuals. The application is online and right after that Subway sends a detailed package with information on the contracts and everything that should be known about the way the system works. After 10 days the contract can be signed, in order the franchisee to have enough time to review all conditions.
Subway requires a proof of stable finances in order to give the rights for a franchise. The company doesn’t cover any part of
Entering the business
The experience, which Subway has on various markets around the world, proved that the master-franchise methodology is not beneficial for the brand. Master franchise means that when one person or company receives the rights for a franchise, he can operate on the territory of the whole country – to organize all training and marketing activities. On the contrary – Subway is using the development-agent method. The agent doesn’t organize the trainings but sends the future franchisee in specialized training centers. The course is obligatory for each franchisee and lasts 2 weeks. All expenses are to be covered by the franchisee.
Subway Bulgaria Ltd. was established as in November 2008, its executive manager, Ivan Todorov, was appointed at the position of development agent of Subway for Bulgaria. To receive the franchise Todorov’s restaurant in a mall in the city of Varna had to compete with just one other restaurant. He won the franchise and Subway opened its first outlet in Varna. The goal of Subway was to have at least 10 000 restaurants in Europe and at least 27 of them to start operating on the territory of Bulgaria in the next 7 years - by 2015. Before setting up Subway Bulgaria, Todorov has been working as manager of clubs, restaurants, immovable property.
Franchising conditions, and development of Subway Bulgaria Ltd.
The procedure to obtain franchising rights for Subway is simple. Subway Bulgaria gives franchise rights to other individuals. The application is online and right after that Subway sends a detailed package with information on the contracts and everything that should be known about the way the system works. After 10 days the contract can be signed, in order the franchisee to have enough time to review all conditions.
Subway requires a proof of stable finances in order to give the rights for a franchise. The company doesn’t cover any part of