Parker

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The Proposal

• Subway
• Location Analysis
• Intersection of Longmire and Birmingham
• Market Analysis
• Demographics, Market Size, Employment Trends
• Financial Feasibility
• Pro-Forma Projections, Sensitivity Analysis

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• Started in 1965 by Fred DeLuca
• Decided to franchise in 1974
• Today, over 17,500 in 74 countries

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Voted 1

• 2nd in market share only to McDonalds
• Goal is to be the largest fast food chain
• 7 subs consisting of 6 grams of fat or less
• Subway has been voted the 1 franchise
  opportunity by Entrepreneur Magazine in 2003.
  11th time in past 15 years!
• Sources Subway.com Nytimes.com

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The appeal of a Subway franchise is universal
with low investment, a simple operation, and
unparalleled support for the franchisees.

- Don Fertman

Director of Franchise Sales
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Location Analysis

• South-central College Station, TX
• Lot 8, Block 3, of L.O. Ball Memorial
  Subdivision, Phase II.
• Plat recorded at Brazos Co. Courthouse
• Access via Longmire and Birmingham
• Zoned C-2
• 2.75 acres, can be subdivided into .5 acre tracts
• Free-standing restaurant
• No environmental problems (BCAD)
• Not in 100-year flood plain (BCAD)

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College Station P Z Commission Highest Best
Use to be a hotel, restaurant, or strip center
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Market Analysis

• Demographics
• Employment Trends
• Market Study

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Brazos Co. 2000 Census Data
Largest target market is 18-29 age group because
they comprise largest of population in Brazos
Co. Important to remember that Subway products
are marketed to all age groups. Subway marketing
strategy is based upon a growing trend to eat
healthier.
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College Station 2000 Census Data
According to this data, approx. 58 of population
is in their college years.
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Competitive Edge

• College Station is 3rd fastest growing restaurant
  market in Texas.
• Avg. anticipated growth in restaurant market is
  11.
• COMPETITION in target area
• Papa Johns
• McDonalds
• Cotton Patch
• Jack-in-the-Box
• Double Daves Pizza

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Financial Feasibility

• Capital Expenses
• Purchase
• Re-platting Fee
• Building Construction
• Parking Construction
• Restaurant Equipment Outfitting
• Signs
• Miscellaneous
• Debt Financing

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Financial Feasibility

• Operating Expenses
• Franchise Fee
• Royalties
• Advertising
• Security System
• Freight Charges
• Utilities
• Maintenance
• Insurance
• Salaries
• Inventory
• Real Estate Taxes

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Best Case Scenario
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Worst Case Scenario
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Expected Case Scenario
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QUESTIONS?