EXPOSING the TRUE cost of owning a Subway Franchise Restaurant! 🥪

This is the TRUE cost and operating costs of buying and owning a Subway restaurant. The numbers behind this will surprise you! WATCH NOW to learn how!
#subway #restaurant #franchise #business #businessideas #businesstips #entrepreneur #entrepreneurship
Subway is a popular franchise business that operates in the quick-service restaurant (QSR) industry, specializing in submarine sandwiches, salads, and other fast food items. Let's explore the Subway franchise business model, including the costs of buying, operating, owning, and the potential income for the owner.
Franchise Fee and Initial Investment:
To become a Subway franchisee, you need to pay an initial franchise fee, which is currently around $15,000. However, this fee can vary depending on factors such as the location, size, and market conditions. In addition to the franchise fee, you will need to make an initial investment that includes costs such as equipment, leasehold improvements, signage, training, and inventory. The estimated initial investment for a new Subway franchise ranges from $116,000 to $263,000, excluding real estate and leasehold improvements.
Royalty and Advertising Fees:
Once you become a Subway franchisee, you are required to pay ongoing fees to the franchisor. These include a weekly royalty fee and an advertising fee. The royalty fee is currently set at 8% of gross sales, while the advertising fee is around 4.5% of gross sales. These fees are typically deducted from your gross sales on a weekly basis.
Operating Costs:
As a franchise owner, you will have various operating costs to consider. These costs include rent or lease payments for the restaurant space, utilities, employee wages, insurance, supplies, marketing, and ongoing training. The specific costs will vary depending on factors such as the location, size of the restaurant, labor market conditions, and other factors.
Revenue and Profitability:
The potential income a Subway franchise owner can make per year depends on several factors, including location, sales volume, operational efficiency, and cost management. It is essential to note that the profitability of a franchise can vary significantly from one location to another. However, Subway provides average sales figures for its franchises, which can serve as a rough estimate.
According to Subway's Franchise Disclosure Document (FDD), the average annual sales for a traditional Subway location in the United States are approximately $425,000. However, it is important to note that this figure represents gross sales, and the actual profit will depend on the deducting the operating costs mentioned earlier.
The profitability of a Subway franchise will also depend on factors such as the local market competition, customer demand, and the effectiveness of your marketing efforts. It's crucial to analyze the local market and carefully manage costs to maximize profitability.
It's challenging to provide an exact figure for the income a Subway franchise owner can make per year as it varies significantly based on multiple factors. It's recommended to conduct thorough research, review Subway's FDD, and consult with existing franchise owners or financial advisors to get a clearer understanding of the potential income in a specific location.
Remember, owning a franchise involves both risks and rewards, and success depends on factors such as your dedication, management skills, market conditions, and local competition.
Disclaimer:
The content of this video is for informational and entertainment purposes only and should not be considered as financial or investment advice. Any financial decisions you make should be based on your own research and consultation with a licensed financial professional. The creators of this video and its contents will not be held liable for any financial losses incurred as a result of following the information provided in this video. Always conduct your own due diligence and seek professional advice before making any financial decisions.

[@Mysterykingdom]

Bruh they need to raise the startup fee subway by me fr has no quality control it's like a 1 in 3 chance of food poisoning 💀

[@JelfriTorres]

Where’s that?

[@Mysterykingdom]

@@JelfriTorres chicago

[@NikoBellaKhouf2]

You really think raising the fee is going to stop that? I've gotten food poisoning from McDonald's. Do you know what they charge to start up?

[@NikoBellaKhouf2]

$400K per year isn't worth it. After you deduct expenses, you'll be in the red.

[@papap7509]

So have roughly $115,000/ $415,000 in the bank and then purchase a subway franchise.
*what lovely advice*

[@JelfriTorres]

Not advice just sharing how it is

[@iamshakes6672]

How funny that this video hit YT when the company was just sold.
Don’t come to South Philly - There is a sandwich shop on ever corner.

[@JelfriTorres]

I’ve been there many times, it’s tough

[@whiteeyeterro5910]

Nah north got the best food and and a safer environment to enjoy it in, especially at this cool spot called the KNA

[@holiday-mm1xs]

Subway jus sucks too bad firehouse way better

[@brick343X]

So, depending on the situation, would a loan be a good idea?

[@JelfriTorres]

Seek advice from a professional, This video was only educational

[@brick343X]

@@JelfriTorres Fair enough.

[@MariaTavarez-k5x]

Good thanks ❤