Subway Franchise questions

rocksolid

I have an opportunity to buy a subway from somebody selling theirs. I have been talking to the broker and the seller is looking for about 35K for the franchise. It nets about 25K - 30K a yr so according to the broker I can make back my money in a yr. He has all the numbers to prove what the business is doing. He also said it can be run without me being there. Is this too good to be true? What am I missing? The lease is also new for 5 yrs.

Ryan O'Bleness

Hello, @rocksolid. 

I'd like to point you toward the most popular discussion in our forums. This discussion asks what the average income of a Subway owner is and has 90 comments on everything you need to know about owning a Subway franchise. Let me know if you can find answers here: 

https://community.startupnation.com/discussion/8830/whats-the-average-income-of-a-subway-restaurant-owner

rocksolid

Thanks Ryan, I saw that link and I need to read through it all but I thought the info might be a bit outdated so I was looking for more recent info.

Ryan O'Bleness

I see. There are more recent posts from 2017 in there as well, but you have to navigate through the pages, particularly the last page of the discussion: https://community.startupnation.com/discussion/8830/whats-the-average-income-of-a-subway-restaurant-owner/p6

Perhaps you can go into various Subway locations in your area and ask to speak with the owners. They would be able to give you the run-down on everything you need to know. 

ItsSherryTee

What are the real reasons the franchise is for sale? What are the number of hours (and costs) total the owner would be working including receiving & making phone calls when not physically at the location and all of the coordinating, administrative hours etc. involved? Include time in transportation and associated direct and indirect costs, employee & customer issues, etc. I'd bet you'd be near the minimum wage region.

Ignoring all of the true time; effort; people, equipment, regulatory including inspections, headquarters headaches & expenditures, inventory-related & employee-turnover issues amongst others not specifically identified here, it'll be great!