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 money does a Subway franchise make a year?
The average location costs nearly $235,000 to start, but the expected revenue is much lower than most other franchises. Likewise, hundreds of locations have closed recently, showing demand may be falling. The average Subway franchise generates around $400,000 in revenue, with profit averaging around $41,000 per year.
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
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How much does a Subway owner make a year?
The average salary for an Owner is $121,868 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.
How much does a franchise owner make a year?
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.
What franchise is the most profitable?
Most Profitable FranchisesAnytime Fitness. Anytime Fitness is a popular gym brand with a low-cost investment and high revenue potential. ... McDonald's. McDonald's franchise program is one of the most established in the fast food industry. ... UPS Store. ... Jersey Mike's Subs. ... Dunkin' ... Sport Clips. ... 7-Eleven. ... Papa John's.
How much does a 711 owner make?
Total Pay Estimate & Range The estimated base pay is $81,982 per year. The estimated additional pay is $58,226 per year. Additional pay could include bonus, stock, commission, profit sharing or tips.
How do franchise owners get paid?
How do franchise owners get paid? Franchise owners can pay themselves a salary or depending on their business entity, they may be able to take a draw from their accumulated equity.
How often do franchises fail?
A five-year study by the franchise consulting firm FranNet reported that 92 percent of their franchise placements were still in business after two years and 85 percent after five years. Because yes, sometimes franchise businesses can rise and fall like independently owned companies.
Is owning a franchise a full time job?
Buying a franchise doesn't have to mean making a full-time commitment. Believe it or not, there are many franchises that can be run on a part-time basis, especially when you first start out.
Is it smart to buy a franchise?
If you're a fledgling entrepreneur or a seasoned business person wanting to diversify your holdings, you've probably wondered, “Are franchises a good investment?” The simple answer is yes, especially if a great opportunity presents itself. There is an obvious appeal to starting a business via buying a franchise.
What is the most profitable franchise to own in 2022?
Most Profitable FranchisesDunkin'7-Eleven.Planet Fitness.JAN-PRO.Taco Bell.Orangetheory Fitness.Great Clips.Mac Tools.More items...•
How much is a Starbucks franchise?
What are the Financial requirements for a Starbucks licensed store? You need to pay the licensing fee of between $50,000 – $315,000 and you must have over $1,000,000 in liquid assets to be considered for a licensed store by Starbucks.
How much does a Dunkin Donuts owner make?
The average Dunkin' franchise is getting around $620,000 to $1.3 million in sales per year. This results in the average Dunkin' franchise owner to have an annual salary of around $124,000.
How much does Subway make per sandwich?
According to Smart Money, Subway franchisees make a “Profit of roughly $1.20 a sandwich.” Product discounting is one of the hottest topics in franchising. Here's why: Franchisors make money off the gross sales of their franchisees, regardless of franchisee profitability.
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.
What are the requirements to own a Subway franchise?
To buy a franchise with Subway®, you'll need to have at least $40,000 in liquid capital and a minimum net worth of $80,000. Franchisees can expect to make a total investment of $150,050 - $328,700.
How much is a Starbucks franchise?
What are the Financial requirements for a Starbucks licensed store? You need to pay the licensing fee of between $50,000 – $315,000 and you must have over $1,000,000 in liquid assets to be considered for a licensed store by Starbucks.
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?
Explore Franchise Owner Salaries
Check out the latest Franchise Owner Jobs or see Franchise Owner Salaries at other companies.
How much does it cost to open a subway?
Initial costs for a store site include its real estate and construction expenses. For a Subway business, it is estimated the total cost for the initial restaurant site ranges from $150,050 to $342,400, much lower than other competing fast food franchises.
How much does it cost to franchise a McDonald's?
An initial startup licensing fee of $15,000 is required to begin the business, compared with a $40,000 to $90,000 licensing fee for Dunkin' ( DNKN) or the $45,000 fee that Mcdonald's ( MCD) charges. Annually, royalty fees are also required. Subway royalty fees are 8% of annual gross sales, which are higher than the 5% and 4% that Dunkin' and Mcdonald's charge, respectively. Additionally, the franchisee is required to pay an ad fund fee that is 4.5% of total gross sales.
Why do entrepreneurs want to own a franchise?
With franchise ownership, franchisee entrepreneurs gain the benefit of licensing an established business's procedures and processes from the franchisor. These licensing benefits give the business owner numerous advantages, including an association with an established business and the benefits of an already established branding strategy.
What are the benefits of franchise?
One of the greatest benefits of a franchised business is the ability to gain use of the company’s operational procedures, trademark rights, and branding. With these licensed business advantages, franchisees can primarily rely on the established marketing of the franchised business for its sales.
Is subway the largest fast food company?
In fact, Subway is the largest fast food company in the world in terms of store count. It is one of the most popular businesses to franchise and is also known to have among the lowest franchising costs. For 2020, it is ranked #107 on Entrepreneur Magazine's " Franchise 500 Ranking .".
Is subway a licensor?
These licensing benefits give the business owner numerous advantages, including an association with an established business and the benefits of an already established branding strategy. In the fast food industry, Subway is an extremely well-established licensor of its sandwich stores. In fact, Subway is the largest fast food company in ...
Is subway a privately owned company?
Subway has a long history in the fast food business. It is a privately owned company that opened its first restaurant in Connecticut by founder Fred DeLuca in 1965 under the name "Peter's Super Submarines.". Its deep roots have allowed the company to build a strong strategic brand around its sandwiches and ...
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.
How much does it cost to license a subway franchise?
In comparison, Subway franchises are much more affordable to the average small business owners in the United States. Their licensing fee is at $15,000, much cheaper than other popular food brands like McDonald’s.
How much did the subway franchise make in 2012?
In 2012, prior to Subway’s decline, the average Subway franchise generated $482,000 in revenue. By 2016, that had dropped to $422,500. These numbers have to do with the fact that more Subways are opening but are not earning as much thanks to the increased competition.
How much does subway royalty cost?
Subway’s royalty fees are at 8%, which is twice of what McDonald’s charges its franchisees at 4%. It’s a small number, but for small business owners it can mean significant thousands of dollars that could be the difference between profitability and loss.
How many subways are there in 2020?
As of 2020, there are over 41,500 Subways worldwide, all of them independently owned.
Why is the subway so fast growing?
Arguably, the reason for Subway’s fast growth and appeal to potential franchise owners is its low-cost high-return model.
How much does it cost to open a subway?
The total cost of opening a Subway is estimated at $150,000 to $300,000. In terms of franchising, that’s the cost of a less popular restaurant franchise. Yet, Subway’s popularity rivals the big names of the fast-food industry yet keeps its franchising costs low.
What is the subway's open kitchen?
Unlike other fast food restaurants like McDonald’s, you can see the fresh ingredients put into your sandwich and see to it that the Subway staff are making it according to your directions . This has allowed Subway to gain the “healthy” fast food advantage in an industry where health is a hard-to-reach advantage.
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.
Overview
- In the small business industry, many entrepreneurs favor franchise ownership over starting uniq…
In the fast food industry, Subway is an extremely well-established licensor of its sandwich stores. In fact, Subway is among the largest fast food company in the world in terms of store count. 1 2 It is no surprise, then, that it is also one of the most popular businesses to 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: An Overview
- Subway has a long history in the fast food business. It is a privately owned company that opened its first restaurant in Connecticut by founder Fred DeLuca in 1965 under the name "Peter's Super Submarines." 3 Its deep roots have allowed the company to build a strong strategic brand around its sandwiches and the overall fast food experience. Between 2013 and 2017, the company was …
The Cost of Franchising a Subway Restaurant
- One of the leading selling points for a Subway sandwich shop is the low cost of opening a franc…
Other costs are involved in franchising the business. An initial startup licensing fee of $15,000 is required to begin the business, compared with a $40,000 to $90,000 licensing fee for Dunkin' ( DNKN) or the $45,000 fee that Mcdonald's ( MCD) charges. 5 Annually, royalty fees are also requ…
The Procedure for Franchising a Subway Restaurant
- An in-depth due diligence process is required for a franchise, and the franchisee must pass a nu…
Upon gaining site approval and passing the capital requirements, next the franchisee enters into a licensing agreement with the franchisor. 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…
The Sales From a Subway Franchise
- Subway sandwiches and the Subway business are both well-known, which helps Subway be a leading revenue producer in the fast food sandwich industry. As of the latest available figures from 2021, Subway had its strongest sales in that year since 2013. 7
How Many Subway Locations Are There?
- According to the company, Subway has more locations worldwide than any other restaurant chain. 1 As of 2020, there are more than 40,000 locations spread across 116 countries. In the United States alone, there are nearly 21,000 Subway locations. Canada comes in second place with almost 3,000.
Who Own Subway?
- Subway, Inc. is owned and run by the DeLuca family. Subway was founded in 1965 by 17-year old Fred DeLuca. Headquartered in Connecticut, each Subway franchise is independently owned and operated. 8 Because it is privately-held and stores are owner-operated, Subway is not listed on a stock exchange.
What Is Subway's Most Popular Menu Item?
- This will vary depending on the country that a Subway is in. In the U.S., the most popular menu item at Subway is often the turkey breast sandwich, tuna, or Italian B.M.T. 9 In Australia and New Zealand, the Greek lamb with tzatziki comes in first, and in Japan the shrimp avocado sandwich. In the U.K. the Indian-inspired chicken tikka sub is most popular.
The Bottom Line
- With the benefits of an established business, low startup costs, and parent company support, a Subway franchise is a good option for entrepreneurs interested in opening a franchise business .