Buying A Subway® Franchise
Today we will be talking about subway franchise cost and profit and how to start up if you want to get into this business and buy Subway franchise. If you, too, are interested in the topic, keep reading.
Subway is the largest fast-food network in the world. Under the company’s brand, there are more than 44,800 restaurants in 112 countries around the world. This is more than the establishments of other well-known networks, including McDonald’s. At the same time, Subway remains a company with one of the lowest initial cost levels in the restaurant business.
SUBWAY FRANCHISE BENEFITS
Subway franchise review. Most of the franchises, so the Subway has lots of advantages over starting a business from zero. That’s why people tend to buy franchises of famous companies to assure that people will already be familiar with the company and willing to spend money, and to get rid of all the processes that they would otherwise go through for starting a business from scratch.
- A business model that has proven its relevance around the world;
- High business resilience to economic crises;
- High recognition of the Subway brand among the target audience;
- Growth of sales in the fast food segment in the last two years;
- Low rental load when opening due to a quick start-up business;
- The lowest amount of investment among international fast food brands;
- Return on investment within a reasonable time;
- No requirements for the presence of potential franchisee experience in the business.
- Franchisor support
- Comprehensive consulting
- Mandatory staff training
- Approved vendor system
- Marketing support
- Ongoing support after the opening of the restaurant
WHAT IS THE START- UP COST?
The rush fee or license cost is 15 thousand dollars, after which the franchisee must pay the company 8% of the profits monthly, excluding taxes. The initial capital is on average 120 thousand dollars. This includes the establishment of the institution, the purchase of necessary equipment, furniture, etc. When opening a new restaurant you will need to hire at least 10 people. Practice shows that the institution pays for itself in 1.5-2 years, depending on where it is located.
Consider the fact that buying an existing subway franchise rules may be different; you have to get in touch with the owner for more information.
WHAT ARE THE CRITERIAS YOU HAVE TO MEET?
The company does not impose strict requirements for the selection of the location of the restaurant, it can be opened in a large supermarket in a small town and beyond. The main condition is to visit the restaurant. With a fairly reasonable rent or if you have your own premises, even 200 visitors per day can consistently bring profit.
Interior Subway Room can be found independently, or you can use the database of the nearest Subway center, which receives commercial offers from landlords. Having chosen a suitable room that meets all requirements (an area of at least 30 sq.m., a location near a restaurant, a power consumption of 35 kW), the franchisee submits information about it to the franchisor.
The franchisor analyzes information about the selected premises, assesses its economic potential, as well as possible effects on the business of the neighboring franchisee. After consideration, the entrepreneur is issued a certificate of approval for the premises, and the restaurant can be opened. If there are any problems with the same restaurant located in the neighborhood, all disputes are considered by the approval center of the company – the franchisor.
If you go to Subway franchise website, you can find the subway franchise owners list in your state and get in touch with some of these people and ask your questions about the start up process.
HOW MUCH PROFIT CAN YOU GET ?
The profit you can earn from Subway Franchise change a lot according to your country, location and how much time you spend on your job.
- According to statistics, an average subway franchise earns $5000 weekly.
- That makes $5000×4=$20000 a month.
- And $20.000×12=$240.000 in a year.
- It is a very good amount of money to be earning from a franchise.
CONTACT INFORMATION OF SUBWAY FRANCHISE
The contact information of Subway Franchise in the USA is given below:
Subway franchise contact number: +1 (305) 883-3966
SUBWAY Development Office is located in Miami, Florida USA
HOW MUCH ARE THE ROYALTY AND ADVERTISING ROYALTY OF A SUBWAY FRANCHISE?
What are the basic royalty and advertising royalty of a subway franchise?
There is a 12.5% payment to be made evey week by franchisees of Subway in total. This total payment consists of sales taxes substracted from gross sales. Part of it goes to the royalties of franchise and another part to advertising.