#1 Franchise Opportunity - Or Is It?
Someone has posted a comment on this blog that has prompted me to write and I am so sorry to hear about your nightmare with the wonderful world of Subway - "THE #1 FRANCHISE OPPORTUNITY". To read the full comment, CLICK HERE.
I myself am struggling at this very moment with my franchise. I am currently working 2 jobs not including the subway gig and I am still in the red! I have tried the "do this - do that - do this - do that crap that Head Quarters posts for us as franchisees to use as a “sales booster” and like you, nothing is working. I know many people will read our blogs and blame it on us as franchisees for our failure - but when it's just not there it's just not there. I honestly think that the DA's (development agents) are in it for the money. They could care less if you have 1000 or 10 cars passing your store. Everyday they are the first to tell you that the "location" is great! Yes, I do realize that we as franchise business owners can't solely depend on what someone that works for Head Quarters tells us. And we as franchisees have to pull ourselves up by our big girl/boy undies and get the job done. But what happens when nothing works... and we can no longer afford to buy undies! We lose it all and that is a scary thought. I guess with any business you win some and you lose some and frankly if Subway Corporation cared so much about "their franchisees", they would step up and help. They get the WISRs every Wednesday or Thursday. Do they actually look at them? Hell no, they look at one number and that number is used to calculate how much they can draft out of your account.
Think about what would actually happen if Subway Head Quarters would see that when you have a negative in earnings something is wrong - "RED FLAG, RED FLAG" put on the Subman costume and rush off to the rescue!! Okay, that a bit crazy but hey one can wish right? Subway Headquarters should step up send someone from the lovely DA's office and I am not talking about your Subway field rep to help you. I guess the point I am getting is that the #1 franchise opportunity may not be all it's cracked up to be - yes thousands are opened but how many of those thousands actually thrive.
Very well said. One of the most important things when developing a franchise business is selecting location. Unfortunately you were misguided by the Subway development agents into believing that your location was acceptable. Just hang in there!
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Hi, I totally concur with your vision of what you think about the ROI when it comes to owning a Subway Franchise. It was a good idea a while ago, but when too much price drops happen, corporate starts to interfere with biz and deters the interests of the Subway store owners, things go down. That is exactly why I sold my store!! Glad I took that step...
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In regards to "is it the #1 franchise opportunity" - when evaluating a restaurant franchise, it is extremely important to remember the following: total investment required, franchise fee, management support, number of currently franchised units, and years in business. Those five fundamental categories are the most accurate and best ways to truly see how properly and efficiently the franchise runs. You need to be honest with yourself in regards to your financials. If the initial capital required is $100,000 and all you have is $70,000 then chances are you are looking at a franchise that is way out of your league. It’s better to look at lower costing franchises and use the extra money to focus more on your advertising and marketing efforts. I wish you the best with your Subway Franchise
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I found an article about the 10 fastest growing franchises - of course the infamous Subway is #1. Here is the article: http://ezinearticles.com/?Fastest-Growing-Franchise&id=705726
The 10 fastest growing franchises, (as listed by Entrepreneur.com) are
Subway
Having over 24,000 restaurants in 77 countries, this enterprise was started in 1965 by Fred De Luca & Pete Buck. The aim is to offer a fresh, healthy alternatives to fast-food restaurants.
Jan-Pro Franchising International
Having over 4,000 units in the US as 180 in Canada, this enterprise has established a substantial base in the commercial cleaning business. Jan-Pro was founded by Jacques Lapointe, in 1991.
Dunkin’ Donuts
Founded in 1946, by William Rosenberg, Dunkin’ Donuts has its locations in over 40 countries and serves a variety of doughnuts, muffins, bagels, coffees and fruit drinks. Dunkin’ Donuts has 5,505 franchisees in the US, 79 in Canada, and 1,856 in the rest of the world.
Coverall Cleaning Concepts
Coverall Cleaning Concepts, founded in 1985, provide a variety of commercial cleaning services to customers throughout North and South America, Australia and Asia. Coverall Cleaning Concepts has 8,994 franchisees in the US, 238 in Canada, and 303 in the rest of the world.
Jazzercise
Founded in 1969, by Judi Sheppard Missett, Jazzercise incorporates dance moves to deliver aerobic exercise. They have 5,659 franchisees in the US, 105 in Canada, and 1,043 in the rest of the world.
Jackson Hewitt Tax Service
Started in1960, US-based Jackson Hewitt is a national tax service specializing in computerized federal and state preparation of individual returns. They have 5,802 franchisees in the US.
RE/MAX International
Founded by Dave and Gail Liniger in 1973, RE/MAX is a global network of more than 116,000 real estate agents. They have 4,299 franchisees in the US, 646 in Canada, and 1,953 in the rest of the world.
CleanNet USA
Founded in 1987, by Mark Salek, the US-based company provides a variety of cleaning services for commercial, retail and industrial facilities. They have 3,763 franchisees in the US.
Bonus Building Care
Founded in the mid-‘90s, by Arleen Cavanaugh the co-founder of Jani-King, the company provides a variety of commercial cleaning services. They have 1,675 franchisees in the US.
Jani-King
Founded in 1969, by Jim Cavanaugh, the company offers commercial cleaning service. They have 9,933 franchisees in the US, 580 in Canada, and 1,630 in the rest of the world.
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I think you give away part of the problem - you work two other jobs!I can't imagine running a successful business when your attention is s divided. There will be lean times and you are correct - the company will not bail you out - nor should they. I know a franchisee who lived in his first store - now he's a millionaire.
Good Luck - Hang in there.
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They tried to lure me into getting a franchise of them too (here in Europe). After extensive research (MBA degree here), I found this to be the problem with their "formula":
- Extremely weak DAs. DAs buy terrority and hence push for as many new Subways as possible because they get a % of your revenue (via the Royalty fee you pay to SW). They couldn't care less about how well you operate.
- SW itself doesn't care either: they take 8% out of your *revenue*, you have to pay on a weekly basis. Reads: "as long as we have our cash fast, we couldn't care less if you actually make a profit".
- They don't provide financial data so you can build a business case. You need to try to get that from current franchisees, who don't want to give it you (the bulk) or lie to you (some of them). In all ways: no independent audit done by a CPA, so informational value = zero.
No central marketing, aux contraire: you pay 4,5% to a "trust" and need to agree with your fellow franchisees on how to spend it (wasn't it your 4,5%???).
- No teritory protection: they CAN open another SW 100 mtrs from your store AND WILL DO SO. Remember: the DA wants as many revenue as possible because he gets a % of that. If you drop dead and the new store makes up for that he couldn't care less about you.
- No central financing agreements with banks.
- No housing agreements with real estate companies.
- SW determines if you can close your store on a Sunday even if you only make 30 USD (this blog). Of course: they get 8% of all revenues: revenues is all they care for, not it you make a buck.
- Weak formula: SW isn't competitive at all (SWOT-analysis done by your's truely).
- Problems in Germany (Google)
Basically, what this reads to me is: "hey, we've got a "great" formula. You take ALL THE RISK, pay us 8% + 28% + 4,5% and after that you are COMPLETELY ON YOUR OWN. Sure, we provide "sales training" on our website AFTER you've paid us the 10,000 USD, but the really important stuff we don't help you with nor care about".
Of course I could be wrong but this is my impression
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Not_a_complete_fool – Yes you are right and you did got your facts straight. However, that’s not the case in all the Subways. Let’s go over your points one by one.
(1) DAs do push for as many new Subways as possible. Correct. But, there are not building right next to each other. Legit distance between two Subways is minimum two to two and half miles.
(2) To some point, Subway does and don’t give a damn about your profit. Let’s say if you buy existing Subway and once you bought it and if sell drops then obviously, Subway will send Rep over to see why sales have dropped down? It’s not like you are out on your own. Indeed, once you buy it, it’s your responsibility but Subway does help you out improve businesses, like IPC corp. If never heard of it then go and research.
(3) Subway doesn’t give out financial data, which is correct. But, when you said that existing Subway’s owner will give out bulk data which is bull, my friend. I will tell you why, there is a weekly sales report which will be received by each owners and it will be sent over by Subway headquarters. When you want to look for financial data, all you have look do is ask for those weekly reports for last year and you will see. You don’t need MBA for that.
(4) No central marketing? Well, if your store is in prime location then you don’t need marketing. Who needs marketing? It’s for people who newly developed their stores and whose store is in rural location. I believe that you don’t watch TV. All the different commercials that you watch on TV regarding Subways which are playing role as a central marketing. At least in States it does.
(5) No territory protection: they CAN open another SW 100 mtrs from your store! How many times have you seen one Subway located to another Subway within 100 meters? I believe legit distance is two to three miles not 100 meters.
(6) No central financing agreements with banks. This is true, I agree onto this one.
(7) No housing agreements with real estate companies. This is true, but I think this is your own responsibility as a business owner.
In a nutshell, Subway owners in America are doing pretty well. Here is my simple formula (No MBA here), if you own one store which makes roughly 7k per month and you will operating that store at the same time then you will do well off. However, you won’t become “millionaire” from one store. To see that extra bling, you will have to own more than four stores and manage them all at the same time.
Other thing I noticed on this forum is that users who bought the Subways are either unhappy with DAs or their Subway is in rural location. Which might end up losing money, which is true and I do believe that it’s Subways responsibility to research the land and location before giving out permission to open up the store out there. Indeed, I also have several issues with my DA but if one has to get the work done, then it wouldn’t hurt to kiss that butt a little bit.
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Hahahahaha
Today I had another meeting with the DA who is anxious to sell more of this "unique business opportunity":
1. I told him I need to create a business case, including a full P&L, balance sheet and cash flow statement. He says "you are focusing on the wrong point: you only need to focus on your break even point"...*sigh* break even point is another way of presenting the P&L...That's what you get when a DA has no education whatsoever (as in this case...), however is responsible for "coaching" new franchisees.
2. When I told him "I'm having concerns about the power of the formula, it's innovative capacities, the support to franchisees, etc", he said "with 28,000 SW stores sofar, what do you think: that you are right, or that SW is right?"
Hahahahahah! This is THE comedy of the year! I mean, in my previous posts I already commented on the power of the formula, but in addition, this is what you get from a DA, make no mistake: your one and only help out there, because SW corporation doesn't talk to you, they delegate it all to the DA. It's hilarious! It makes me think of Multi Level Marketing...
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I forgot
He also said "SW is opening a new store every 3 hours". So I said "and how many of them are closed again because it doesn't work (the fail rate)"? He says "I think about 1%". I said "ok, and can you give me details as to the causes? Wrong franchisee, wrong location, cost structure, competition?" He said "no, that's confidential information". HAHAHAAHAHAH!. Now, make no mistake, surely he's a moron BUT: this is what the corporate processes result in: this is how they allow a DA to become a DA. And again: the DA is all you have...
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Lemme continue
So I said "I don't particularly like SW sandwiches; I don't think they are adapted to European standards. My friends think the same. It's nothing special". So his response is "well, then maybe you are not suitable to be a franchisee, if you don't understand the unique opportunity we have here". HAHAHAHA. Now, please read up on my other comments. Like said, I hold an MBA, I have been trained to develop and evaluate business and have done so succesfully in the past. One thing I value most is: if I get criticism, I listen. Because surely, eating habits between the USA and Europe differ. There are a zillion stories of US-companies that tried to launch businesses in Europe and failed. Because? They didn't adapt (!) Example: in Europe we like our meat to be raw. In the USA people like meat to be cooked/baked/whatever, because of fear of diseases. SW doesn't want to change its formula, so over in Europe we get the same meat as in the USA, HOWEVER: we don't like that. SW's answer: "the formula is the same everywhere".
How stupid can you be if you don't even recognize this???
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Thanks for making such solid points in regards to Subway franchising, and adding great value to my blog.
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You're most welcome
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How do you hold MBA? Is it degree or cooking pan? Here in US, we don't user term HOLD. HAHAHAHAHAHAHAHAHAHAHAHAHAHA
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???
Looking at the quality of your spelling, I doubt you ever finished high school, did you?
Yes, in the USA the term "hold" is used.
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I just found another interesting blog, and wanted to add it here. It seems the owner is an - by now ex- franchisee as well and he shares our thoughts:
http://subwayfranchisee.blogspot.com/
Be sure to check the archives; he goes way back
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Ow, btw, did you ever actually read all the contracts they send you, before you sign? I did that some time ago, and it is, again, hilarious. They use the strategy of completely confusing people with all the addenda the put together. But what it boils down to is: you have NO rights whatsoever, the contracts completely cover their asses but not yours. You are obliged to do this, do that, padadee, padadom, etcetera. They even (laugh; laugh!) claim the right to any SW sign *you pay for* once you close/sell your store. I mean: c'mon, this isn't a franchise relationship where two parties join forces for their mutual interests, is it? This is modern slavery which differs from classic slavery because of one thing: here you pay first to become a slave...
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Hello, MBA "Holder", Subway Hater guy. First off, why do you want to own Subway? Looks like you are the one and only one with MBA, haha. Second, did Subway DA didn't give you an option to become franchisee? Is that why you are hating on Subway this much? OR are you just simply envy with other Subway owner who are making millioans (without the MBA), hahaha LAUGHS hahahaha.
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Funny I get comments about my spelling from somebody who can't write decent English
But to answer your question: I hope many people who consider starting a Subway read mine - and other people's comments - so they can use the information we've already learned: helps them not to reinvent the wheel/waste time on research/be prepared for the pitfalls that are ahead. So it's actually a service to the community because I just can't stand dishonest people try to lure honest people that try to start a business.
As to your "I'm jealous of the SW franchisees "making millions"" or "couldn't get a franchise": first, I doubt *any* franchisee over in Europe makes millions. Aux contraire, they should be lucky if they make 100K EUR net profit before taxes, which will be damn hard taking into account the weak formula, and could only be done by not hiring (much) staff but putting in 16 hours a day (and that includes the wife). Of course, if you don't calculate normal salary for yourself and only look at the 100K profit at the end of the year, you're fooling yourself: the 100K net profit isn't net profit: it's salary.
About the "couldn't get a SW": yes I could; they offered me 5 at once "if I'd sign within 3 days"/"had to hurry, because there were more people wanting those 5 because of the formula, the hottest thing in ages". I turned their offer down: the 5 are still available...
It's a lot of blabla, and I hope new candidates will use our information to avoid stepping into the trap that will cost them a couple of hundreds of thousands investment that just doesn't make sense.
Ow, "you_are_fool": what's your email adres over at SW, btw? I take it you are a DA out there, somewhere...
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Hello to my European "MBA Holder" buddy from America! No, I am not DA. I am subway owner. I don't know about the situation in Europe but I have heard that it's pretty bad.
Anyways, some of your information is right but NOT ALL. You want absolute dynamite business. Well, face it...every business has pros and cons. One of the cons about Subway is DAs and their stubborn system. Indeed, some of the DAs are pain in the butt but you will have to work with them in order to accomplish your goals.
"They offered you 5 stores at once", haha, again I am LAUGHING, by the way I laughed for 10 mintues and now I am writing again, hahahaha.
First of all, Subway won't offer multiple stores at once to a new owner, THATS BS. Who knows what's the system in Europe but that's not the same in US. Do you have $$ available to purchase five stores at once? Let's not talk about 100% amount but atleast 25% amount required for loan. Who are you trying to fool here?
Last but not least my European friend! I am not claiming that I have MBA, second I am not using MicroSoft Word for spellings and grammer. Third, indeed my grammer is poor but my Europeam friend with so called MBA, I make way more than you do thanks to Subway.
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And a happy new year to you too
Ad1: yes, I hold the cash. To be exact, 2.1 million EUR (with the current exchange rate that is about 3.5 million USD). Sufficient? The entry fee is 5.000 USD (3.500 EUR) per store, so, as I take it you know the cost estimates SW gives for opening a store (which are incredibly high level - and therefore full of errors, but hey, that's part of the system of luring people into it, isn't it
Ad2: you just proved you either aren't into the business yourself or you are but don't know a thing about how SW operates. But I'll clue you in on one trick (the easy one, there are more tricks): I open 1 store, the DA opens four more himself, after 6 months I take over the other 4 from him. It's called "a favor to a friend" by the DA (provided "I sign now" hahahahahahahaha).
Finally, I don't think anything about what you make from your store, so nice for you if you can pay your rent from your profit. That's not the issue here: the issue is the formula is weak, will not survive (at least not in Europe), and beyond that, just like the founder of this blog says, it is one big scam. Read up on my previous comments (business analysis, yes, MBA
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hahahahaha, can't stop laughing after reading your ignorance comments on how much you own. If you own that much, then why do you want to buy Subway?
Let me break it down for you.....
You got your socalled MBAs for online college or university with D- average, that's why you couldn't find any job whatsoever.
Then, you tried into Subway but DA rejected you simply because you are absolutely fool. With the anger, no where to go, you came here with your socalled weak forumla and start bashing Subway as a weak formula.
If Subway has weak formula, then why these many people own it individually and make a decent living off it?
Get your act straight and stop fooling around people on here.
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One more thing about me: I have been in Subway business for over 10 years. I own more than five stores. But, it took me 10 years to by these stores. And this guy is claiming that Subway offered him five stores at once? hahaha, let's talk about honesty here.
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[quote]Ad2: you just proved you either aren't into the business yourself or you are but don't know a thing about how SW operates. But I'll clue you in on one trick (the easy one, there are more tricks): I open 1 store, the DA opens four more himself, after 6 months I take over the other 4 from him. It's called "a favor to a friend" by the DA (provided "I sign now" hahahahahahahaha).[/quote]
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Why even look into these smalltime businesses with 3.5 mil sitting in the bank?? You could make more just off of the interest in a savings account with that money. I had consideration in your thoughts until I read that comment. You have proved yourself to have no logical sense. Argue with me if you will ...
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Yea dude, that guy is fool and he is lying. He is making it look like he has 3 mil in assests and still he wants to buy Subways. If he is real business man, he would invest it in high profile stocks or earn money off the interests rather than risking it in Subway.
Average rate of return for subways store (if you are working as an owner operator) is four to five years. Why would he wants to risk that money while he already has that much money in hand?
I have my goal and once I reach it, I am going to sell my stores and live by some sea or nice area where I can retire with peace. That guy is scam NOT subway.
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Sigh, this is getting boring. Let me explain something to you and touch on the subprime crisis that is currently hitting the USA. I doubt any of you has some real economic education, so I'll explain it easy: the world knows, as do all the great economists the USA has, that the USA is near a bankruptcy. People from the USA (note how I don't write "America"; you're only a small part of what constitutes "America"
But, I guess that's the difference between you and me: you want 1 million dollar and "retire", I am a business man...
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Read below. 5% on 3 million is nothing. Can I charge the both of you a tuition fee? For education you in the basics of business administration?
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look I am getting very confused by this blog. It seemed very interesting at first and did discourage me for a moment. I am in the process now on opening up a sw store but now having second thoughts. are the Da's really that bad and are the formulas bad, if you know the truth please respond to this blog. I donot have 3.5 million to waste. I am using me and my 3 children whole life savings and as a single parent, this blog has discouraged me a bit, but after hearing some responses I am kind of thinking someone is hating on sw because they were not approved. One thing I would like to know if you need assistance on problems you may occur, will there be someone to assist you at all times??????????????
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Do NOT invest your life savings in SW, especially not if it also involves your kids (!) There is a reason this blog is called like it is... The owner of this blog has posted a link to a franchising book: I don't know what it contains because I don't buy it (know enough about franchising agreements already). Alternatively, you could look up some good books on Amazon. Buy those, they are you life insurance (!) Then read on up about my extensive review of the SW-formula and the crap they tried to sell, and read others reviews as well. Look at it like this: investing in SW is like investing in stocks on Wallstreet: only do that with money you can afford to loose...! Aside from looking around on the net, go sit at some different SWs for a full day. Count the number of sales, count the number of customers, see how many people are working there and for how many hours, and do the math (read on up on my "math"). Trust me, there's a zillion companies that offer better franchising agreements than SW. But it's always the same: if you have criticism on a formula, those that are locked into it are bound to come back at you saying you sell crap
Your's,
MBA
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WELL I APPRECIATE YOUR ADVICE LIKE YOU SAID ESPECIALLY WHEN MY KIDS ARE Involved AND THEY NEED THIS MONEY FOR COLLEGE AND I WOULD HATE TO RUIN THEIR FUTURE FOR A DUMB MISTAKE I MADE BUT THINGS ARE GETTING Ruff I NEED AN INVESTMENT I CANNOT WORK FOR SOMEONE ELSE I AM AN ENTREPRENEUR. I HAVE A STORE IT'S NOT WORKING OUT TO GOOD SO I KNOW VERY SOON I WILL HAVE TO LET GO AND MOVE ON TO BIGGER AND BETTER THANKS TO MY CHRISTMAS RUSH I GOT A CHANCE TO SAVE A FEW AND I WILL HAVE TO MAKE A QUICK CHOICE BEFORE I SPEND IT ALL IF SOMEONE CAN GIVE ME MORE POSITIVE Incite IT'S VERY WELL APPRECIATED. WELL YOU Definitely STOPPED SW FROM FUC..N' OVER ANOTHER INNOCENT TAX PAYER BECAUSE I WAS Definitely IN THE PROCESS OF FINALIZING. SUBWAY KISS MY A.S AND I MEAN IT I WILL NOT PUT JELLY ON TOP BUT NOW I NEED ANOTHER OPTION SO YOU TURNED ME AWAY FROM SUBWAY LEAD ME IN ANOTHER POSITIVE DIRECTION. HAVE YOU EVER HEARD THAT SAYING IF YOU HAVE SOMETHING NEGATIVE TO SAY ABOUT SOMEONE GIVE THEM SOMETHING POSITIVE TO REPLACE IT. HOLLA BACK MISS MISSY
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Mind the caps: it's considered shouting
I am not going to direct you to another franchise formula since that may lead some people to think I am advocating a different formula at the expense of SW.
Since you are "an entrepeneur" as you write yourself, for sure you can find a better franchise formula yourself: after all, that's what entrepeneurs do
Do the homework: entrepeneurs do
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hey European man - shoot me an email on patelfamily91@gmail.com, I want to talk with you.
This forum won't let me express my American feelings on this forum. Please don't forget to send me an email.
Admin - This isn't against the forum rules, DO NOT delete this.
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But given your hostile style I don't want to talk to you ...
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yea, let's go ahead and listen to this European Dr. Phil, he is the great advocate. He is only MBA in this world who researches formula of different fast food place.
Let's all sit tight and listen to him. Also, don't forget to pay his fees.
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Funny to see how people who can't "win" in a debate always turn to these styles...
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Ok I will do that. i am an entrepreneur and i do have one more option but as any one else it is a gamble. By the way, what is this formula that supose to be so bad about sw. I would really like to know so that I can way my options.
holla back
MISSY MISS BABY
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Read on up in this very blog on what is so bad about this formula. Me and others have provided loads of comments (no need to repeat myself
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Ok I hear all the comments but know one mentioned any figures or what formula was so bad or did I miss something?
Miss Missy Baby
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Yes, I am afraid you missed something then; the information is all contained in this blog. Check again
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Ok I will do that, and yes, I am an entrepreneur. I have one more option, just like sw it's a gamble and by the way, what is the sw formula that is so bad? This is an option I need to way.
holla back
MISS MISSY
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missy:
I own a store in long island new york and would love to give you some info on the franchise....first of all, to get a hi volume store is very rare. There are 62 stores in suffolk county long island, thats only 1/2 of long island. There are only a handful that do hi volume numbers. Hi volume is 7-15k a week. I'm talking maybe 10-15 stores make this type of money believe me. I was lucky to have very low rent so I don't have to make as much...Missy the truth is it is a complete nightmare from beginning to end, just get a job or start a different business other than this. Go from store to store and ask the franchisee if they are happy and profiting. You'll see what I'm talking about. Here are the facts and thats all that matters: If you make 7k a week here are your expenses:1000 for your new loan (assuming you borrowed 150k to build it, It's usually more than that)750 franchise fees...550 for taxes...800 for rent...1500 for food...300 for electric...800 for employee pay...240 for employee taxes...25 for phone...plus misc fees of about 100...I might even be forgetting some things but this adds up to 5065...leaves you with 935 minus taxes which would be roughly $670 a week...If I'm off it's not off by much..This is INCLUDING profit...trust me, I know many franchisees and these are facts...even if you make 10k a week its not really great money, its better but not great..also, be ready to work 55-70 hours per week or add a few hundred more in labor and food cost if you plan on working less. When you are there less the food cost goes up. So let's say its 65 hours per week...your pay is 935 before taxes, so its about 14 per hour...get a job. These numbers are different of course if its a very hi volume store but good luck getting one. Don't forget, thats if you make 7k a week!!! Most stores make about 3500-5000. I don't even want to get into the d.a. thing that part is scary. Good luck!
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Sorry, I added the numbers wrong...The expenses add up to $1065...
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6065....I'm typing too fast!!!
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Hi, I am doing a project for my business class and was wondering if any one could help me by answering the following questions. Thank you so much.
1. Did you consider any other franchises?
2. How long have you had this franchise?
3. Would you ever consider starting you own business after owning a franchise?
4. What is something that surprised you about the franchise process?
5. What is the biggest disadvantage of owning your franchise?
6. What is the biggest advantage of owning your franchise?
7. Would you recommend owning this particular franchise to someone else?
8. Who is your target customer?
9. Do you believe that because you are a franchise you get more business than a non-franchise store similar to yours?
10. What is the most important thing to consider in owning a franchise?
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1.Absolutely, I did a lot of research on various franchise opportunities that are available. However, the determining factor for purchasing into the Subway franchise was the cost.
2.I am currently still in business – so that would put me at almost 3 years.
3.Yes, because knowing what I know now I could definitely make a decent living on my own without shelling my hard earned money to Mr. Deluca.
4.The additional cost which was unbelievable and The Golden rules you have to abide by its either there way or no way!
5.The Royalty fees and their rules!!!
6.Branding – Advertising
7.NO
8.Everyone!
9.NO, franchise (subway) in particular have higher priced food. Non-franchises don’t have to pay the BIG GUY portions of their earnings.
10.DO YOU HAVE THE AND EXTRA 40+grand to use for disposable cash? Are you willing to put in 100 hours a week for nothing?
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thank you so much, your answers are very helpful. where is your restaurant located??
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my subway restaurant is located in florida - about an hour north of miami
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Hey Lesson Learned - If you don't mind, would you please tell me your weekly volume, rent, foodcost and labour % and other monthly expenses.
Thanks
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labor 6.50 manager 7.50, wv = approx $3500. rent/owning $2300 fc =$800-1200 wkly taxes and ext $3g rough estimate..
you wouldnt happen to know what one has to do to get out of the franchise would you?
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Lesson Learned - I feel your pain dude. With weekly volume of 3k, it's almost impossible to affoard any employee. Did you start the brand new store or bought an existing one?
Chances are, if you open brand new one at rural location then your weekly volume will be much lower like yours, in this example. Rent of $2300 is way too much, why is it so high?
I don't know a way to get out of Subway the easy way. Yes, there are easy way, but for that you will have to change the state you are living in and your identity. Which I would not prefer. Also, that option is only available for people who owns money to bank. If you invested all your money, then you will have to stay there until you will get your investment back.
How did you get into this store? Didn't you consult with someone before buying or opening this store?
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