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Whats the average income of a subway restaurant owner?

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    mrfranchisemanmrfranchiseman subscriber Posts: 0 Member
    Response to nevadascul and jenncug above
    You actually do not need, should not need 400k to cover negative cash flow for one year; if you are projecting that bleed rate, do not buy that store. If you are not sure of the projected cash flow based on Sales and Rent, contact me , as others have done, to find a reliable projection of actual cash flow and buy the store at a reasonable price. Most people get rich on Subway with 2 or 3 stores or more, not on one store. For new prospective owners-you can usually buy only one store at a time.
    mrfranchiseman.com, Subway specialist
    949-253-4610
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    Want2BsubwyownerWant2Bsubwyowner subscriber Posts: 0
    Subwayowner...... I want to talk to you can I get your email?
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    mrfranchisemanmrfranchiseman subscriber Posts: 0 Member
    Anyone needing Subway information can contact me. I have the latest cash flows and [url=mailto:valuations...fayaz@mrfranchiseman.com]valuations...fayaz@mrfranchiseman.com[/url]
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    shringicshringic subscriber Posts: 0
    Mrfranchiseman

    I am looking at starting a new venture and I have been through this entire post. I am from India and am planning to own a Subway franchise.I have my own location which according to me is a traditional location as of now, but has a lot of scope. Initial expenditure including franchise fee is 90000 $ and the rest of maths u know. Before reading this post i had in mind a good profit margins of around 30-40 % but now i am sceptical of opening a Subway with so much expenditure , though the location is self owned but can fetch me a decent return later. What do think?? I should go ahead and open a subway franchisee, keeping in mind the manpower is cheaper in India compared to US and I mite not have to work as many hours as you have mentioned. Also being orthodox I am assuming a weekly sale of 1700 $ initially to start with.
    Please advice.
    Thanks
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    subwayndassubwayndas subscriber Posts: 1
    what if the owner does not provide combo report but wants to give only 52 week report?
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    mrfranchisemanmrfranchiseman subscriber Posts: 0 Member
    My website posts what I have access to at www.mrfranchiseman.com
    Subway discourages such postings from brokers
    Not all stores that are for sale are identified as such for internal reasons. The ones that are on the Subway website are of poor performance and you take your chances.
    I have developed methodology to access some of these hidden gems that are out there, and have some success at it, but it is time consuming, requires discipline and an ability to talk to owners. As a previous owner of 9 Subway stores and as a former Development Agent, I know how to achieve this as long as you are a qualified and approved buyer.
    Fayaz Karim, mrfranchiseman
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    TimBTimB subscriber Posts: 4
    By reading all the posts and and the answer of the Subway Owner I have got many ideas for opening my new restaurant. Thank you all.
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    CambycamCambycam subscriber Posts: 1
    Subway Owner-I know this post is nearly 6 yrs old, but if you are out there, or another subway franchisee, would like to know a little more, going to the seminar this week. When you say you pulled 20% profit, do you mean for your buisness or in your pocket? assuming some of profits after labor/costs you put into development, emergencies,etc. that come up.
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    fcmonteirofcmonteiro subscriber Posts: 0
    When someone says: "I am making 15% profit"
    this is after they pay the royalty fee, right?
    Lets say the average profit margin is 15%, if you still need to pay the 12,5% (royalty+advertising) , you are having around 2,5% net profit, which is not a good business investment
    can someone clear this for me?
    thanks,
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    cogee94cogee94 subscriber Posts: 0
    Hi, I'm in New Orleans and presently a self employed contractor with my own building and thinking of investing into the Subway Brand. 1st, I just newly renovated the building from scratch from Hurricane Katrina damage, but unfortunately didnt build out to Subway specifications, so the new building would have to be practically ripped up, moving bathrooms, walls tearing up new ceramic and so on, but I figure since the building is mine with a very minimal mortgage, I can do my own buildout at a fraction of the cost, and I would not have to pay myself rent, but I do not want to work full time in the store because my schedule is pretty demanding as it is. So do you think it can be successful with only working there 10-12 hours per week and keeping my construction company running full time? Secondly, is it possible to buy the franchise, do the buildout and then soon after sell the franchise and just benefit off the rental portion? Is this just a pipe dream or could turn out to be a decent investment? Just trying to find out if it would be worth tearing my newly constructed building apart and gambling on a new franchise with no restaurant experience except Taco Bell 20 years ago as a 16 year old (lol). Thanks
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    GotleoGotleo subscriber Posts: 0
    Looking at opening a subshop. Near a highschool. With fair amount of traffic. What would the costs be for food, rent(what would you recommend for square footage) utilities, insurance etc. A footlong would sell for $5 and 6" for 3.50. How many subs would sell on average. Open from 10:00 til 10:00 Mon-Sat. Any other info would be greatly appreciated.
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    mrfranchisemanmrfranchiseman subscriber Posts: 0 Member
    I have been absent off this forum for a while and busy with life as you all are. But just wanted to mention that Subway wants to open 8000 more stores in USA if they can. They can and will!
    Talk about Saturation from the franchisee perspective!......big debate going on.
    It is time for some Subway owners to sell and cash out some of their portfolio. I am already seeing some movement in the market, but they are usually the least performing in their portfolio. To be expected.
    Great time for first time buyers looking for a decent job and getting ready to pounce on new opportunities as they come along. They will all sell someday.....

    Over the years I also wandered what people buy or do if they cannot buy a Subway or other franchise, and found an amazing solution. And it is free of all the franchise headaches I have heard over the past 20 years, yet it operates like a franchise with no limits. Subway is matured and getting to be a tired brand , or so I am told. They are even doing $4 subs in a few areas........

    fayaz@mrfranchiseman.com
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    subwayfranchiseesubwayfranchisee subscriber Posts: 0
    Inquirer,


    I own 3 franchises in the United States and my break down is this:

    Food-33% (lowest store 30% highest store 33%)
    Labor-22% (lowest store 19% highest store 22%)
    Rent-9% (lowest store 3% highest store 9%)
    Subway-12.5%
    Utilities/Misc-8.5%
    Profit-15% (lowest store 15% highest store 22%)

    I highly suggest keeping your food/labor 55% or less and rent less than 10% to maximize profits. Mrfranchiseman and SubwayOwner have the most accurate posts on this site. I would also suggest financing your equipment instead of leasing. The average subway lease comes out to +20% interest where as a traditional loan would be in the 5-8% range. Hope this helps!
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    BridgewaterNJBridgewaterNJ subscriber Posts: 0
    Great info Albert, thanks.
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    ZorroZorro subscriber Posts: 0
    Hi Biagitec,
    I found a post from you regarding your interest to get into the franchise business. I have a similar interest to step back and venture out of the corp world to become a franchisee.

    Did you get into the franchise world? Did you try Subway?
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