In 1965, seventeen-year-old Frederick DeLuca of Bridgeport, Connecticut, borrowed $1,000 from a family friend, Dr. Peter Buck, and opened Pete’s Submarine Sandwiches in Milford, Connecticut. The first shop floundered, but DeLuca tried again, and when a second shop did well, the partners began expanding their operation. The flagship product was the “submarine” sandwich, composed of a variety of cold cuts, including ham and turkey, and salad vegetables. They changed their name of the restaurant to Subway (its corporate name is Doctor’s Associates Inc.). DeLuca and Buck began franchising in 1974. Subway expanded its operation through “development agents,” who sold Subway franchises—a system that has led to abuses and numerous lawsuits. The costs of setting up a Subway outlet, however, are comparatively low, as are the franchising fees. By 1979 Subway had one hundred stores. A large number of franchisees are immigrants, who work long hours to make their businesses succeed.
