On average, each franchise unit makes $422,000 a year. The estimated Subway franchise Subway is an American privately held fast food restaurant franchise that primarily sells submarine sandwiches and salads. Subway is one of the fastest-growing franchises in the world and, as of June 2017, has approximately 45,000 stores located in more than 100 countries. More than h…Subway
What is the average income of a Subway franchise?
There was a survey of several hundred owners performed by a Subway owners association that showed the average store profit is in the $28,000 per year range. Any loans taken to purchase the store (ave. store cost to build is in the $200K range) needs to be subtracted from this number.
How much does it cost to start a Subway franchise?
Subway is one of the most ubiquitous and successful global fast-food chains. Those looking to franchise a Subway store can expect to shell out around $200,000 in startup costs plus a $15,000 initial licensing fee. Subway's franchise fees tend to be lower compared to its competitors. Subway has a long history in the fast food business.
Can you make money with a Subway franchise?
Well, becoming a Subway owner can bring the exact opposite. If you are planning to own a single-unit of a Subway franchise, unless you spend your time running the business, you will make very little money out of it. So you will need to be involved, and that means actively managing a business operation that is open 7 days a week, for long hours…not very appealing…
How can I become a franchise partner of subway?
Lease space to an experienced Subway® franchise owner who will invest, build out, staff, operate the restaurant and pay a monthly rent. Work with a Food Service Management Company -The Food Service Management Company (or FSMC) may already be our franchise owner, or we can help it become one.
How much did subways sell in 2015?
How much cash flow does 200k make?
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How much does a Subway owner make a year?
The average salary for an Owner is $121,945 per year in United States, which is 35% higher than the average Subway salary of $90,272 per year for this job.
Is owning a Subway franchise profitable?
In 2021, Subway saw a 21.3% increase in revenue, growing from $634 million in 2020 to $769 million in 2021. Based on the average sales calculated above, at an average of a 15% profit margin, it will take approximately 7.3 years to recoup your investment, which is longer than most franchise opportunities.
Which franchise makes the most money?
What is the most profitable franchise to own? According to the Franchise 500 list of 2021, Taco Bell is the most profitable franchise to own. The food chain has been franchising for nearly 6 decades and is still seeking franchises worldwide. As of 2021, they have 7,567 open units.
How much does a 711 owner make?
However, if a particular franchise is not making the given amount, 7-Eleven adjusts the monthly charge to cover this minimum gross income. In terms of profit, the franchise owners can draw $50,000 – $75,000 on an average for their salary.
How much does a Subway earn?
The average Subway salary ranges from approximately £12,159 per year for Sandwich Maker to £32,151 per year for Area Manager.
What is Subway's royalty fee?
How much are the royalty and advertising fees? Subway® Franchisees pay 12.5% every week (gross sales minus the sales tax); 8% goes toward the franchise royalties and 4.5% goes towards advertising.
How much can you make as a franchise owner?
According to a survey done by Franchise Business Review involving 28,500 franchise owners, the average pre-tax annual income of franchise owners is about 80,000 dollars.
How much does a Starbucks owner make a year?
Starbucks Franchise Costs and Profits An average Starbucks franchise owner makes $120,000 in a year with one outlet and $2.4 million with 20 outlets. Of course, the success of your franchises depends on plenty of factors that affect sales and profits.
What is the initial investment required to open a Subway franchise?
Opening a Subway franchise requires an initial investment of $150,050 – $328,700
What is the average revenue of a Subway?
Subway makes an average of 11 billion annual sales through its entire franchise system.
How many Subway franchises Outlets are there?
Subway has more than 44,852 outlets worldwide.
Whats the average income of a subway restaurant owner?
just checked with a very smart friend of mine whose sister is a major subway franchisee in the southeast. here`s what he said: average cost to open a store is $150k - $180k depending on the geography and the ROI is 3-5 yrs, but having one store is like buying yourself a job...you need 4+ good stores to have a nice income and spread the people and risk around.
Subway Franchise Owner Salaries | Glassdoor
The estimated total pay for a Franchise Owner at Subway is $108,295 per year. This number represents the median, which is the midpoint of the ranges from our proprietary Total Pay Estimate model and based on salaries collected from our users.
Subway Salary FAQs
How does the salary as a Franchise Owner at Subway compare with the base salary range for this job?
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How much does it cost to franchise a subway?
You need at least US $40,000 in working capital and approximately US $80,000-310,000 in net assets. Subway charges a $15,000 franchise fee and provides third-party funding to help you get started.
How Much Money Does Subway & Owner Make?
Subway franchise generates approximately 11 billion annual sales through its entire franchise system, of which 7.5% of the annual sales, the corresponding profit is 31,000 US dollars, while the average annual sales of McDonald’s restaurants are US $2.7 million. Subway also charges high recurring fees to its franchisees.
How does a subway franchise impact the community?
The community and surrounding area of the Subway franchise have a significant impact on annual revenue. For example, if you find that your area has a lot of people and there are no similar fast-food restaurants or submarine sandwiches, you will definitely attract many customers.
How much is the profit margin of a subway franchise?
The profit margin of the Subway franchise stores is only about 7.5% of annual sales, which is approximately US $31,000. It doesn’t sound like a lot, and it’s definitely not. There are other franchises that generate higher annual revenue, although start-up costs may be higher. However, the profitability of Subway franchise is not so high, and there is a reason for the decline in recent years.
How many subways are there in the world?
Subway has more than 43,000 outlets around the world and is one of the largest fast-food chains in the United States with international influence. This is a restaurant that specializes in comfortable submarine sandwiches (also known as sabas), including salads, fries and drinks.
Does the minimum wage affect subway prices?
The cost of supplying raw materials and even the minimum wage fluctuates. However, this will not necessarily affect the price of sandwiches sold by Subway, especially in the $5 life cycle. This did not bring much profit to franchisees. On the other hand, prices can be offered in certain locations, for example, you can see prices from airports or busy business districts with a lot of pedestrians.
Does McDonald's own subways?
All Subway stores are franchises. The company itself does not own any subway restaurants. McDonald’s owns 20% of restaurants, and the remaining 80% is owned and operated by independent franchisees.
How To Acquire A Subway Franchise
Much like other franchises, applying is relatively simple. However, there is a process. To start, there is a form you have to fill out in order to apply for a location. The form is quite expensive and requires a considerable amount of information. For example, the form asks for both your and your spouse’s personal information.
The Associated Costs
In terms of costs, there are quite a few. However, Subway provides a PDF that gives an in-depth analysis of how much money you will approximately need to invest. However, this is only for the initial investment. Some of the costs include franchise fees ($15,000), equipment, and insurances.
How Much You Can Earn
Lastly, we will take a look at how much you can potentially earn from owning a Subway franchise. Unfortunately, according to Subway, their franchisees are not allowed to disclose how much money they earn. However, we can conjure up some numbers from external sources.
Is Subway A Good Investment?
Whether or not Subway is a good investment is completely up to you. There are definitely times where it is. For example, if you find a good area where there aren’t many Subways around, you can definitely earn more than the average franchise. This is due to the fact that you will have a mini monopoly on the area.
What is the problem with franchising?
Massive market saturation (The problem in franchising is the brands that are most visible get the most people applying for a franchise. But it is that exact visibility that hurts you financially as a franchisee with so many locations vying for business.
Do subway franchises have disclosure documents?
Now as Franchise brokers and consultants we are in a unique position in that we have access to every Franchise Disclosure Document out there. We also speak regularly with existing Subway franchise owners selling their locations and we hear the reasons why they want to sell. One of our partners here at franchise.city was also a multi units Subway owner for a number of years before selling his stores.
How much did subways sell in 2015?
This 2015 post states the average sales were about $437,000 - The rise and fall of Subway, the world’s biggest food chain.
How much cash flow does 200k make?
So for a 200k investment in an existing store with reasonable rent, you will probably see sales of $6500 a week translating into about $60,000 cash flow in your pocket as an owner operator working 40 hours a week. Usually therefore people like two such stores for a decent income. All this is before debt service.
How much did subways sell in 2015?
This 2015 post states the average sales were about $437,000 - The rise and fall of Subway, the world’s biggest food chain.
How much cash flow does 200k make?
So for a 200k investment in an existing store with reasonable rent, you will probably see sales of $6500 a week translating into about $60,000 cash flow in your pocket as an owner operator working 40 hours a week. Usually therefore people like two such stores for a decent income. All this is before debt service.
