Investing in a franchise is a wise choice if you’re looking to break free from the tediousness of the corporate career and to become your own boss. Subway is a popular franchising option that enables you to capitalize on a well-known brand name. But you can’t just jump in and start running a franchise. There are key questions you need to ask yourself and resources you should access prior to jumping in headfirst. This guide will provide the answers to some of the most frequently asked questions about investing in a Subway franchise.
Before we dive into the various FAQs on Subway Franchising opportunities, let’s have a look at what it takes to buy and run a Subway franchise. Subway is the world’s largest submarine sandwich chain with 46,000 locations in 111 different countries. The food chain prides itself on delivering freshly-prepared sandwiches, using only the finest ingredients. It has also established itself as a leader in the franchising world, featuring one of the lowest franchise fees, startup costs, and royalties.
FAQs on Investing in a Subway Franchise
What are Subway’s Franchise Requirements?
Subway states that the ideal franchisee should have a passion and drive for success, a strong business acumen, and have at least $80,000 in liquid assets and a net worth of at least $310,000. Additionally, potential franchisees should be willing to commit to the Subway brand and to working closely with the company throughout the ownership and operation of the franchise. Additionally, Subway requires all franchisees to complete a personal financial statement and provide three professional references.
How Much Does It Cost to Own a Subway Franchise?
The total cost of a Subway franchise varies, as a few of the factors that come into play include the size of the restaurant, location, taxes, permits, and other fees. Typically, the franchise fee is anywhere between $10,000 to $15,000, with additional investment reaching around $270,000 — including the cost of build-out.
What is the Average Revenue of a Subway Franchise?
The exact average revenue of a Subway franchise is difficult to determine, as it is highly dependent on each individual franchise’s location, size, and management. According to Subway, the average store nets anywhere from $75,000 to $175,000 in revenue in a year, but franchise owners can and do generate much more.
What is the Subway Franchise Fee?
The initial Subway franchise fee ranges from $10,000 to $15,000, depending on the size and location of the store. Additionally, franchisees are typically required to pay an ongoing royalty fee of 8% of the store’s gross sales.
What Additional Services Do Subway Franchisees Receive?
Subway provides all of its franchisees with extensive training and support, from the initial startup and build-out of the restaurant, to ongoing operational support. It also provides its partners with a variety of marketing support, such as local radio and television campaigns, as well as print, billboard, and web advertising.
Are There Any Special Promotions or Discounts Offered With Subway Franchise Opportunities?
Subway occasionally offers special promotions or discounts for potential franchise partners, so it’s always a good idea to keep an eye out for those. It also offers a veteran’s discount that essentially waives the franchise fee for veterans who are interested in opening a Subway restaurant.
The core message
Subway is a great option for investin in a franchise. Its low startup costs, fees, and royalties make it an attractive option for those looking to break away from the corporate grind and become their own boss. As with any business venture, though, potential franchisees must be thoroughly prepared and educated on the various aspects of franchising with Subway. By answering all of your questions beforehand and taking advantage of any available discounts or promotions, you can make the most of your Subway franchise investment.