Getting Out Of My Subway Franchise
Posted by Subway Franchisee - Site Admin at 10/6/2007 4:14 PM and is filed under Subway Franchise - Getting Out Of Contract 
Does anyone know the answer to this? Once you purchase a Subway Franchise how long are you obligated?
For those of you who have read this blog, you probably know why I'm asking. I have struggled to wits end trying to make things work. Here's my latest attempt:
Subway Corporate Marketing finally came to my help and sent someone out to my location to assist me. I initially had a negative feeling that whatever they did would not help. But, I figured I would go with it. After brainstorming ideas and convincing them that I have already done every kind of marketing known to mankind, Subway Corporate decided to send out mailers (sigh). This occurred a little over a month ago. So far, 10 people have brought their Subway coupons to my restaurant for discount sandwiches. 10 people. YES, 10 PEOPLE!!! But the best part about it is that those 10 people are my REPEAT CUSTOMERS. So in actuality I'm losing more money than I would be making. It cost about $500 for the mailers and I did not gain one new customer. My biggest issue is new customers to my rural store - not repeat customers.
With all the rules and regulations of the Subway Franchise business I feel that I can increase my earnings by running my own restaurant. I can choose my own hours, set my own prices, etc. So, does anyone know how I can get out of the subway franchise?
Poor, poor Boy,
in your situation, sorry, there is no really comfortable solution. You can sell your store and you will loose your money - thats the SUBWAY - way. Read everything about the SUBWAY - game here in this blog and learn to be a poor man again. Sorry!
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I totally understand your situation. I myself am experience similar struggles. At what point do you toss in the towel and say "pheweeeeee enough is enough"? I have spent approx 3g this past year out of my pocket in hopes to increase sales in my area - but to my surprise (not) that failed miserably! I went throught the "Oh I have a brilliant marketing plan that will increase your sales by 3g a week bs. I just laughed and played along too. Lets motivate our employees.. lets create calenders..lets run this and that..lets give away a "free" cookie with each meal to keep them coming back...TOTAL CRACK POT!
I'm tired of the struggles and I am just about to the point where I am willing to GIVE my restaurant to any willing taker before I lose everything I own trying to keep it afloat.
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I understand completely Footlong. Willing to give your restaurant away? Well, so am I and so is SickOfSubway. I suggested once that we can give away 2 Subway Franchises for the price of none. Maybe 3? - Take a look here 2 Subway Franchises for the Price of None!
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Afterthought, ooopsss! the thing with subway is that they tell you how to do nothing and yet demand that you do things there way. What i mean by this is u go thru the training and leave with Nothing but a huge waste of time... you are all geared up to open your resturant for the 1st time with little to no help.. they say go getter! u have to learn how to run reports..
how to navigate the pos on your own.. basically how to run your subway on your own ever single detail. and it is extremely stressful.. then heaven forbid you do mess up they are the 1st ones there to smack you on the hand and say "no no" don't you know better! is pretty much a joke at this point.. am tired of struggling am tired of taking money out of my pocket and i'm just tired period....lets just say had i known now what i know then..i wouldn't be commenting on this site nor would i be searching for info on subway! Ps.. i found this on the arbitration issue!
check this out http://franchisepundit.com/index.php/2005/05/
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Wow you talk about getting out of your Subway Franchise, and I'm just here researching how to get in one! I understand they are once again the #1 Franchise Opportunity. I'm looking for a franchise business, so I assumed Subway restaurant was the way to go. I'm not crazy about the fast food industry as it has it's own set of issues, however it certainly is cheap to start!!
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The reason why Subways are cheap to open is because of their smallish revenue stream, with little business opportunity for meaningful revenue increase. Paying someone to work in the store would be a significant drain on an already slim margin.
Even if you didn't go with Subway, I still don't think foodservice sounds like your cup of tea. Believe me - it may not be the best business opportunity available to you out there.
So based on that alone, I'd not recommend it for you. If it really were easy to make money franchising in new locations, there'd be no such thing as franchising because the franchisor would simply own all of the locations outright.
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Hello All;
Here is my sad story...
I excelled in data processing and desktop networking for years until I was laid off in January 2002. At that point, my wife and I decided to OPEN AND RUN OUR OWN BUSINESS! We often fantasized about owning a Subway franchise since we did get those flyers in our sub bags every once in a while. Soooo, after tons of red tape from Subway and local municipalities (I never wrote so many multi-thousand dollar checks in my life) to fix plumbing codes, and fire codes, etc for a pre-exisitng restaurant. We took a pizza place and turned it into Subway. Construction took forever. Initially, we would be open by July after signing in January. Nope. Then we were set to open by Christmas....nope. Finally, we opened March 15, 2003. No customers. My 5 employees, Subway rep, and me - all standing around and at the end of business, 300.00 in sales. Never got much better. In 100 weeks of operation, we hit $5,000+ in sales only 8 times. My wife and I needed $6,500 a week in sales EVERY WEEK to make it work. Supposedly, we wer ein an "A" location...hahahha my butt. I marketed on my own, I took coolers of subs to construction areas, I catered. Nothing worked. Eventually, my wife and I lost our dream home to foreclosure, two cars, and much more as we were basically forced to move out of state. We owed back state sales taxes, Subway royalties, and of course rent (to Subway Leasing). We got no help and closed without even getting a bid on a purchase. We basically walked away from it....
Now, in South Florida, I am a successful restaurant manager (for a major Corporation) and we finally have furniture in our apartment. We lived on plastic chairs in the living room for 1.5 years. Times were tough but we stuck it out. Now, I'd love to write a book on The Subway Screwjob I and many others have encountered. I miss my store and my employees - it was a dream, but like any dream, it can and did turn into a nightmare.
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I heard Pizza has a great profit. Sorry to say you probably should have just stayed with the pizza place,instead of turning it into a Subway.
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WELL FOOT LONG WE ALL HAVE DREAMS OF GETTING RICH QUICK.BUT HANG IN THERE IT WILL GET BETTER AND IF IT DONT YOU CAN SAY YOU TRIED.LIKE MARRIGE RUNNING A BIZ TAKE SACRFICE AND TIME. IF WAS ALL THAT EASY WE ALL WOULD OWN A SUB WAY
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At Mike Koz:
I feel for you, and your story only confirms what I wrote here:
http://subwayscam.com/2007/11/11/not-best-franchise-opportunity.aspx#comment-690921
Good to see at least you're out of it now.
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I am saddened to hear of continuing trauma from owners -I used to be a multi unit Subway franchisee and Development Agent. I now help byures get in and sellers get out of their stores, with caveats and advice that is truthful to everyone.
I know all the ins and outs of transfers and DA motivation and their contracts.
If anyone needs help getting out , e mail me for a one on one session
I am even a member of NAASF !
Talk to me
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I want to sell a store, what can you do for me please?
hibitola@gmail.com
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The best help I can give you is phone advice to see your situation
call me 949-253-4610
Before I diagnose a problem nd give solutions, I will need:
Combo report
Rent and CAM
Hours worked, and min wage rate
Remodel needed or not ?
Loans outtanding on business
other minor questions.
I am really here to help, but you must contact me . I do not do this on a blog
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Guys, I am planning to open a Subway and shocked to read all this now.
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Have you already begun the process of opening your Subway franchise?
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what does CAM stand for?
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CAM stands for "Common Area Maintenance". Most retail leases enable the landlord to pass on ALL the costs of running the property directly to tenant, pro-rated by the square footage of the space being leased. These costs include property taxes, insurance, painting, any utilities paid by the landlord, and even the salaries of the bookkeepers assigned to collect your rent.
These costs can wipe out any profits you might otherwise accrue. For example, last year my landlord resurfaced our parking lot, which was cracked and filled with potholes, and had not been maintained for 20 years. The cost was $25K, and the useful life will probably be another 20 years. The landlord just sent me a bill for $8,500 for my pro-rata share.
Let me know if you'd like more information about the dangers of leases and CAM charges.
Mark Leonard (www.YourFranchiseMentor.com), mark@YourFranchiseMentor.com, 415-354-2388
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