Subway Franchises

[SouthAustralia]

Does anyone know if they are very profitable, I can imagine they would have huge buy in costs and commisions.


We are looking at one in a shopping centre. Any help or info would be great. Cheers.

 

[Pornstar]

I think they were doing well early in the decade, but McDonalds have pegged back a lot of the market share with their healthy food menu over the last 5-6 years.

 

[Embers]

Does anyone know if they are very profitable, I can imagine they would have huge buy in costs and commisions.


We are looking at one in a shopping centre. Any help or info would be great. Cheers.

From my understanding Subways operated in shopping centres tend to depend entirely on the amount of people ya can get in on the weekends. I know the Subway at my local shopping centre rakes in over half of its intake on the one Saturday. Its entirely dependant on the weekend takings on whether you will succeed or not. Have a look around, how busy it gets, what people in that food court are buying, whats the competition. IMO if theres a McDonalds near by I wouldnt bother. Theyd have ya covered fairly easily and from what I understand the Subway franchises dont exactly come cheaply.

If ya looking into a franchise I cant recommend a Wokinabox highly enough. The costs compared to the prices are almost insulting. They charge 10.50 for something thatd cost no more than 2.00 to make. Big problem is finding good commited chefs at a reasonable price. Get that sorted and you got a very healthy business. Most owners of these stores are raking in very big profits in the West atleast especially those who outsource the chef job to family members or themselves.

 

[ben_cats_fan]

Does anyone know if they are very profitable, I can imagine they would have huge buy in costs and commisions.


We are looking at one in a shopping centre. Any help or info would be great. Cheers.

Hahaha coincidentally, my parents own one in Tasmania and are looking at buying another. I'm their accountant so I can assure you that if run properly these can be very profitable little franchises.

Having said that, my parents franchise was placed in a developing area during summer and posted massive returns for that period of time. Now, these returns have dropped and it took a while for my parents to get stock/staff levels at a profitable amount so they were infact losing money.

My parents love it. The lifestyle is different to working an office job, but the type of people they are really fits in with this type of franchise.

As with any business, there's always so many risks involved. Subway swipe their royalty amount fortnight I believe it is, whether or not the business actually has the money Get some good advice from your accountant - as it's an established business already, there should be figures for you to get your accountant to analyse and work out whether the business is actually worth what they want for it.

Good luck. If you've any specific questions about the franchise, I'm more than happy to answer

 

[ben_cats_fan]

IMO if theres a McDonalds near by I wouldnt bother. Theyd have ya covered fairly easily and from what I understand the Subway franchises dont exactly come cheaply.

Sorry mate, but this is completely unfounded. The area my parents put their subway was crying out for an alternative to McDonalds a long time ago. To be perfectly honest, McDonalds did everything in their power to delay the opening of the store (they achieved one week!) and when it opened McDonalds worst fears were realised. People just weren't eating at McDonalds!

Franchises are expensive because the building needs to be fitted out and the royalties paid to subway are by no means cheap. But you'll find that with any franchise.

The cost of purchasing an already established Subway franchise won't be stipulated by Subway itself, rather the value placed on it by the owner. The one cost that the OP will encounter though is training. All franchise owners undergo 2 weeks (iirc) of intense in-store training before they can proceed with opening their store!

 

[Invigoration]

Hahaha coincidentally, my parents own one in Tasmania and are looking at buying another. I'm their accountant so I can assure you that if run properly these can be very profitable little franchises.

Having said that, my parents franchise was placed in a developing area during summer and posted massive returns for that period of time. Now, these returns have dropped and it took a while for my parents to get stock/staff levels at a profitable amount so they were infact losing money.

My parents love it. The lifestyle is different to working an office job, but the type of people they are really fits in with this type of franchise.

As with any business, there's always so many risks involved. Subway swipe their royalty amount fortnight I believe it is, whether or not the business actually has the money Get some good advice from your accountant - as it's an established business already, there should be figures for you to get your accountant to analyse and work out whether the business is actually worth what they want for it.

Good luck. If you've any specific questions about the franchise, I'm more than happy to answer

What's Subways take out of interest?

 

[HigginsHawk]

Talking to the franchisee of one a little while ago and he has 3 now. His most recent store opened about 3 months ago. It set him back just under $500k.

I'm not sure but I assume it would vary from store to store based on the size of the store, location etc.

 

[JHF1870]

I guess if you have no debt your going to be making money.

 

[FishingRick04]

Talking to the franchisee of one a little while ago and he has 3 now. His most recent store opened about 3 months ago. It set him back just under $500k.

I'm not sure but I assume it would vary from store to store based on the size of the store, location etc.

fasta pasta franchises all up cost about 500k, minimal franchise fees too, just a stock commitment with mark up

 

[Chief]

Unfortunately Fasta Pasta serve horrible pasta.

 

[FishingRick04]

Unfortunately Fasta Pasta serve horrible pasta.

Really, I don't mind some of their pasta.

It does seem popular with alot of people.