An In-Depth Look At Owning A Subway Franchise
An In-Depth Look At Owning A Subway Franchise
The first Subway franchise was founded in 1974 by Fred DeLucu even though his first store was opened 9 years earlier. Today, spanning the globe in over 85 countries, there are approximately 29,000 Subway franchises. Entrepreneur magazine has ranked Subway the number one franchise 13 out of the last 17 years thus making it a very good investment choice.
Even though the numbers and popularity don't lie, the real question is whether or not owning a Subway franchise is the right decision for you and your family. There's a lot of things to consider when making a big choice, so let's take a look and identify the positives and negatives of owning a Subway franchise.
The total cost of entry and total investment ranges anywhere from $101,000 to $285,000. The reason for the big difference is due to the scenarios buying an existing franchise or having to start one from the ground up. Starting a new one would require finding a location, building or remodeling, leasing equipment, etc. The down payment you need must come from your personal resources and can NOT be borrowed or come from a loan. That fact right there might eliminate some potential franchise owners.
Every Subway franchise pays a 8% royalty fee to the company, and it's calculated on gross revenues, not net profits. This is very important to understand because losing 8% right off the top before you pay for any rent, equipment, inventory, marketing, employees, etc can make a difference in whether or not you're profitable. On the other hand, that 8% goes towards benefiting from the strong brand recognition and national advertising campaigns.
What's really good to know about the sales is that 2800 sandwiches and salads are sold every 60 seconds. That's pretty amazing. This provides a real good flow of customers and sales that can be somewhat predictable. As a franchise owner, knowing that will give you somewhat of a relief to know that your store has a great chance of getting good customer traffic.
On the contrary, when owning a Subway franchise, you are at the mercy of the store location. If you think about it, no matter if you are open 24/7, you can only serve so many customers and sell so much product. You are limited by the amount of volume you can do. You can't sell sandwiches and salads online so the only way to make sales is to get traffic to the store. On that fact alone, a Subway franchise is NOT scalable meaning that owning just 1 franchise most likely will not produce the type of income that you desire.
On top of that, in order to buy the franchise you must have outstanding credit, have a considerable net worth and you have to get approval by the company to have a franchise. Once again, these barriers might eliminate some potential franchise owners. In the end, buying a Subway franchise is a great way to have a great chance of success but you must understand that to really make a lot of money, you're probably going to have to own multiple franchises. Discover Gauteng in South Africa Great Beach Theme Party Supplies And Invitations To Choose From Keeping the rules in mind in a strip club The best and easiest way to become a strip dancer Wanderlust: Ireland Swings Travel First Aid Kits Five Unbeatable Reasons To Buy African Mango Plus Flexible Air Freight from the UK to Lagos, Abuja, NewYork, Washington, Ghana etc Comparison of Materials of Bags Tibetan Festival Guide Best News For Golfer About Discount Golf Clubs TaylorMade Tour Burner Driver Five Fab Salsa Shoes To Watch Out this Spring 2011 Rocket French Torrent-Rocket French Review