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Whats the average income of a subway restaurant owner?

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    DamianDamian subscriber Posts: 1 Member
    I've been reading all these comments and they are all really insightful. However, there is one major question I still have for all the Subway owners here... How much did you have to invest in your own money to open up your first restaurant?
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    Ryan O'BlenessRyan O'Bleness administrator Posts: 1,137 Site Admin
    @samluke or @FutureBowner, do you have any answers for @Damian?

    You can also look here: 
    http://www.subway.com/en-us/ownafranchise/franchisingfaqs 

    It appears that franchising fees will cost about $15K, and your total investment to open a store will cost anywhere between $116K and $260K. 

    But I am not speaking from experience here, so others can better answer the question. 
    Ryan O'Bleness
    Community Manager
    StartupNation, LLC
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    Mary GMary G subscriber Posts: 1 Member
    I have a question for Subway Owner. I explain the situation. 
    There's a Subway here in Lake Isabella. The owner doesn't honor advertised specials. Many people, locals and tourists are dissatisfied with the owner. Do franchise owners have to honor advertised deals or can they make and regulate their own prices? Theres quite a debate in my 4TH group on this subject nd is like to just clarify things and it would be nice coming from another franchise owner. Thnk you Mry
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    Joe MartramJoe Martram subscriber Posts: 1 Member
    Thx Rich for your input....does all this information applies when you have 1 employee besides yourself ??
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    PravinkumarPravinkumar subscriber Posts: 1 Member
    Hello everybody, 

    I've been reading all these comments and yet there is one major question I still have for all the Subway owners here... How much do you actually make after paying 12.5% of total sales to Subway as fee and royalty, then rent, utilities, salaries, etc? I could see some subway owners say that they make 20-25% profit but do they get this profit after paying 12.5% to Subway, bills, rent and salaries? I request someone to be crisp and clear. Thanks a lot. 

    Pravinkumar. 
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    SweepoutSweepout subscriber Posts: 1 Member

    I may not have been the owner but i was a manager of a Subway for several years. It was in Indiana. It was the busiest in town by far, we would do 13,000 to 16,000 a week in sales. Right around the holidays it would dip down to 8,000 to 12,000 but it was by a college, hospital, middle school, high school, and the largest factory in town. So we didnt experience the slump in sales that most Subways in town did during the winter. Labour was normally between 19 and 24 percent, my cost of goods was generally between 26 and 30 percent. Royalty's to Subway were 8%, we never did local advertising, and there was something on my paperwork that was normally at 6% that said "FAF" but i dont know what that was actually. So with just what i could see it was normally 30-45% profit. The owner owned the building but my papers didnt show the cost of utilities so I imagine it was a bit lower than that.

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    LifeRevivalUniverseLifeRevivalUniverse subscriber Posts: 76 Silver Level Member

    The average income in the US is usually $8,000/week. So, the annual income is approximately $400k.

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