Subway, the quick-service sandwich brand, is expanding its international footprint as it continues to negotiate with potential suitors on the sale of the brand.
Subway, which is based in Milford, Conn., and has offices in Miami, said it has completed 15 new master franchise agreements since 2021.
The privately held sandwich franchise company on Feb. 14 confirmed reports that it was putting itself on the block, seeking a sale price of $10 billion. It hired J.P. Morgan Chase as an adviser in the sale process, and officials said they would not be making any further public comments until the sale process was completed.
Earlier in June, Subway entered into a master franchise agreement with Shanghai Fu-Rui-Shi Corporate Development Co., Ltd. to expand its presence in mainland China, calling for nearly 4,000 restaurants over the next 20 years.
Subway has also executed agreements for developments in Bahrain, Georgia, Mainland China, Uruguay, Costa Rica and Panama. The deals will add more than 4,000 restaurants across three regions: Europe, Middle East and Africa (EMEA), Asia Pacific (APAC), and Latin America and the Caribbean (LAC) within the next 20 years, the company said.
The master franchisees will have exclusive rights to manage and develop Subway locations in their respective countries and have committed to remodeling existing locations as well as opening new restaurants in the brand’s contemporary image.
“There is significant opportunity for Subway to expand its presence around the world, and the new master franchise agreements are a reflection of the confidence that operators have in Subway and our transformation journey,” said John Chidsey, CEO of Subway, in a statement. “As we continue to execute against our international expansion strategy, we are excited to grow the brand with new and existing international multi-unit and multi-brand operators to serve more guests around the world.”
An agreement in Bahrain will reestablish Subway’s footprint in that Middle Eastern country, where the company opened its first restaurant outside the U.S. in 1984. Food Innovation Company, the new master franchisee, is one of the oldest, family-owned companies in Bahrain.
In Georgia, Subway’s agreement with Wissol Group will increase the number of restaurants in the country and expand the brand’s presence into new cities, the company said in a press release.
Bahrain and Georgia mark the sixth and seventh new master franchise agreements in the Europe, Middle East and Africa region.
In Latin America and the Caribbean, Subway is partnering with Grupo Vierci, a multi-unit, multi-brand operator with experience in the quick-service restaurant industry as well as retail brands, to more than double its presence in Uruguay. In addition, Subway signed master franchise agreements in Costa Rica and Panama with operators that are familiar with Subway’s business model.
Subway said that the brand has opened more than 1,000 new restaurants globally in the past year and a half, with more than 40% of those driven by master franchise agreements.
Subway has nearly 37,000 restaurants worldwide.
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