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.
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 much cash to open a Subway franchise?
- Initial Franchise Fee – $15,000
- Real Property – $2,000 to $12,000
- Leasehold Improvements – $29,900 to $77,000
- Equipment Lease Security Deposit – $4,500 to $7,500
- Optional Security System – $2,450 to $3,550
- Freight Charges – $3,000 to $4,000
- Outside Signage – $1,600 to $8,000
- Opening Inventory – $4,400 to $6,050
- Insurance – $1,200 to $5,000
What is the average Subway franchise profit?
The profit of an average Subway franchise owner is around $50-60,000 per year. Return on investment ranges from 10 to 13%, which is not very good compared to other food franchises. For a better understanding of how one can calculate return on investment, watch the given video:
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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.
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?
Subway is one of the cheapest restaurant franchises to enter. Total initial investment can run between $150,000 and $328,000 for a traditional location (and $89,550 to $209,400 for a non-traditional location), assuming you lease your equipment from Subway, according to the Franchise Disclosure Document. As a comparison, McDonald's charges a franchise fee of $45,000 and startup expenses can cost up to $2.2 million, according to the McDonald’s Franchise Disclosure Document. A Subway restaurant, on average, generates $422,000 in sales annually, compared to $2.6 million in average annual revenue for McDonald's restaurants, according to QSR magazine.
How much do subway franchises have to contribute to the total sales of the franchise?
Subway franchisees are required to contribute 12.5% in gross total sales each week to cover the costs of royalties (8.5%) and advertising (4.5%).
How Do You Become a Subway Franchisee?
There are no company-owned Subway franchises. Like the original owners, you don’t have to be a sandwich artist or have owned a restaurant to become a Subway franchisee. There are financial requirements, which include having liquid assets between $30,000 to $90,000 and a net worth between $80,000-$310,000. You must, however, participate in a two-week long training course that teaches business concepts, methods of operation, and basic management skills. The training time is spent in a classroom and on-site at a local Subway franchise for a "hands-on" experience. At the end of the two weeks, each potential franchisee must pass an exam to become a Subway franchisee.
What Are Some Other Sandwich Franchise Alternatives?
If you are interested in owning a quick service franchise, but don’t believe that a Subway franchise is right for you, fortunately there are many other options available. The quick service food franchises listed below are all award-winning brands that have been rated highly in FBR franchisee satisfaction surveys.
How many checkers and rally restaurants are there?
With more than 900 restaurants in 29 states and Washington, D.C., the 30-year-old Checkers & Rally’s brand stands out thanks to its black, white and red checkered design. Milkshakes, burgers, chicken wings, and seasoned fries make up the menu, and customers can choose between eat-in, drive-through, and delivery options. Buildings could include stand-alone restaurants, converted spaces, or non-traditional locations, giving franchisees leeway to lower their real estate investments, according to the Checkers & Rally’s website. A recent Franchise Business Review survey shows it ranked among one of the best opportunities for franchising by its franchisees, citing it as “very good” for training and support, financial opportunity and general satisfaction.
What do you need to sell on a subway?
As a Subway franchisee, you are required to sell six-inch and foot-long specialty sandwiches, salads, wraps and other food items. You must also offer a breakfast menu that offers egg sandwiches, bacon, sausage, muffins, coffee and juice if you operate your franchise in the United States, according to Subway’s Franchise Disclosure Document.
How much is subway worth?
It’s brand value is in the millions worldwide: $18,766 according to Statista.
What is franchise grade?
Franchise Grade is dedicated to providing research and education that can help you make confident franchise investment decisions.
Are there any Subway franchise opportunities near me?
Based on 2020 FDD data, Subway has franchise locations in 50 states. The largest region is the South with 8902 franchise locations.
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.
