Posted by: Violet7 September 21, 2011
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If you want to open a Subway, you must first meet the financial requirements of this franchise. I don't know exactly how much money and liquid assests you must have in order to qualify. You can call them up and ask. If you meet the requirements, then only can you move on.
You will need 15k just for franchise fees.
You will also need another $100,000 - $250,000. This money is used to renovate the place, buy equipments such as bakery proofers, ovens, freezers, coolers, cash registers, chairs, tables, microwaves, soda machines, chips rack, cookie holder, etc.
Weekly:
You will need to write checks for the food that you order. They usually deliver at night so you will need to stick the check on the freezer or something.
You need to send your inventory info to the headquarters. This is usually done at night after closing the register.
You will also need to pay your employees. (Don't be cheap, pay at least the minimum wage.)
Monthly:
You need to pay the rent, electricity bills, advertisements fees (those ads you see about Subway on tv, it's not free, you have to pay for it), you might also have to pay some other franchise-related fees but the main one is advertisement.
There might be other maintenance bills too. Your oven might stop working. You might have to call rodent control because there are rats in the basement. Who knows...
Yearly:
You will need to pay royalty fees. This is 8% of gross sales.
Oh another thing, if you open a Subway and realize that you are not making any money, you cannot just close it. Once you open it, you must operate it for at least 3 months before you can even thinking of closing it down. This is one of the rules.
I think Subways make a profit of $70,000-$80,000 a year. I am not totally sure though and your profits might also depend on your location and another thing that I have noticed is that Subways make the majority of their money during lunch time.
This info is based on what I have seen and heard in NYC. It might be different in other states. Overall, if you have the money, I think a Subway Restuarant is a pretty good investment. It is a lot of hard work but what isn't. And if you can open 1 Subway, it's gonna be lot easier for you to open another one. The only hard thing about this is coming up with the money and even though Subway is considered one of the low cost franchises, you will still need some money.
You will need 15k just for franchise fees.
You will also need another $100,000 - $250,000. This money is used to renovate the place, buy equipments such as bakery proofers, ovens, freezers, coolers, cash registers, chairs, tables, microwaves, soda machines, chips rack, cookie holder, etc.
Weekly:
You will need to write checks for the food that you order. They usually deliver at night so you will need to stick the check on the freezer or something.
You need to send your inventory info to the headquarters. This is usually done at night after closing the register.
You will also need to pay your employees. (Don't be cheap, pay at least the minimum wage.)
Monthly:
You need to pay the rent, electricity bills, advertisements fees (those ads you see about Subway on tv, it's not free, you have to pay for it), you might also have to pay some other franchise-related fees but the main one is advertisement.
There might be other maintenance bills too. Your oven might stop working. You might have to call rodent control because there are rats in the basement. Who knows...
Yearly:
You will need to pay royalty fees. This is 8% of gross sales.
Oh another thing, if you open a Subway and realize that you are not making any money, you cannot just close it. Once you open it, you must operate it for at least 3 months before you can even thinking of closing it down. This is one of the rules.
I think Subways make a profit of $70,000-$80,000 a year. I am not totally sure though and your profits might also depend on your location and another thing that I have noticed is that Subways make the majority of their money during lunch time.
This info is based on what I have seen and heard in NYC. It might be different in other states. Overall, if you have the money, I think a Subway Restuarant is a pretty good investment. It is a lot of hard work but what isn't. And if you can open 1 Subway, it's gonna be lot easier for you to open another one. The only hard thing about this is coming up with the money and even though Subway is considered one of the low cost franchises, you will still need some money.