The aim of this paper is to investigate the competitiveness of SUBWAY franchising in the Macau market and what are the conditions needed to open the 3 rd franchise store in Macau. The competitiveness analysis were based on Porter’s five forces model, the stakeholders’ model, and the resource based view of the firm; while a regression analysis on customer satisfaction determinants was used to identify important factors for SUBWAY to consider for its franchising in Macau. The result found SUBWAY as moderately competitive in the industry with a positive position in the stakeholders’ view. SUBWAY’s sources of competitive advantages are derived from its reputation, human capital, and its training and support capabilities to obtain customer satisfaction. Three determinants: food taste, store location, and value for money, were found as significant predictors of customer satisfaction of the Macau SUBWAY stores. Even if 78% of the respondents to the survey knew that SUBWAY was in Macau, only 37% have been to their restaurant. Therefore, being in a strategic location in Macau is one of the most important factors for future franchisees of SUBWAY in Macau when deciding on opening a new store