Subway Franchise...

Amit92

Hey all,

Basically I am 17 years-old, studying A-levels in Economics, Maths and Politics with an AS-level in Philosophy. Been offered University places at Russell/1994 Group Universities to study Economics.

I am thinking of declining my University offers and going into employment for about 2years and then hopfully gaining business finance and buying a re-sale Subway Franchise that turnsover about £4-10k a week and start my rich dreams from there?

Or should I just continue in education?

Also if anyone has experience/advice on Subway Franchises..all offerings are appreciated!

Thanks

pitkin2020

first of most franchise require you put in a set figure, (40% plus) of your own money and find the rest from finance sources, so if the franchise is 100k to buy you will need 40k of your own money before you can even look at it, and you would borrow the remaining 60%.

I would continue your education as you are not likely to go back to it later in life

Amit92

pitkin2020 wrote: »

first of most franchise require you put in a set figure, (40% plus) of your own money and find the rest from finance sources, so if the franchise is 100k to buy you will need 40k of your own money before you can even look at it, and you would borrow the remaining 60%.

I would continue your education as you are likely to go back to it later in life

Hmm thanks...but University is 3years..and the costs are high from loans!?

pitkin2020

but you dont have pay back the loans until your earnings reach a certain amount (or atleast thats how i believe student loans to work). I would always encourage anyone who has started down the long path of additional education to continue whilst you have no responsibilities, i decided to take some time out and thought about going back by the time i decided to go it was too late, i couldnt get funding and i couldnt afford it from my own pocket, then children came along so even less money.
I run my own business now (last 3 years) and its very hard work and very demanding, your life when you start a business is just that the business is your life to begin with as you have to keep your foot on the gas and hold on tight.

Where did you get the 4-10k a week figure from for a franchise?? from subway marketing i bet, do forget that whilst they say that is an achievable figure its the expenditure they dont tell you, 4-6 full time staff (8 part time) is going to take around 1k a week from that figure, the rent, bills, suppliers and subways cut themselves could you leave you with very little, so your rich dreams maybe further on the horizon than you think!!

ukbill69

Get the costs of sales, direct costs e.g. expenses and profit for the business and see if its worth it. But good luck.

ramenkid

I know someone who was a Subway franchisee for 5-6 years. He sold his shops last year because of the recession. He thought by now he'd be a millionaire but no, he's gained good practice of running his own business but financial-wise, there was not much gain. Not worth it with all the time & hard work put in anyway. It's stressful, you need to learn all aspects of business to manage the shops & staff. You have to go to US to pass the Subway qualification before you even open your shop. Then there are loads of guidelines & standard to follow plus regular shop valuations. If you borrow a bank loan then you'll probably be paying yourself a low wage (not better than doing a normal job but with more stress) for the first few years just to keep the business moving, and it doesn't always make profit. If your shop don't perform as expected then Subway development agent will give you pressure. Basically if you don't do well, they can buy your shop or even close you down.
At 17, I advise you stick to higher education and get a professional qualification for the time-being.

wuckfit

The only people who get rich from franchises are the ones who 'sell' them. those who purchase a franchise often end up slaving to make ends meet.

If you want to get into the sandwich business you'd be better off starting off with a mobile service. Find some offices, or better still a business park / industrial estate, and go round them of a morning with a basket of fresh rolls, sandwiches, baguettes, wraps, home made soups etc. After a few weeks once you become established, you'll get to know your regulars, be able to take orders and things.
You have to start pretty early in the morning to prepare everything, but by mid-day, your run is finished and you can head off to the supermarket for the following day's supplies.
The advantages are: few overheads, no premises, cash transactions (no costs for merchant services), captive market, afternoons off, all your profit's yours. All you need is a reliable-ish car to get you to where you need to be.

Amit92

I was thinking of buying a re-sale like this one for about £100k in a few years.

http://www.rtaonline.co.uk/business/26199.htm

The Business

Enjoying all the considerable commercial advantages of its outstanding trading position among other complementary
outlets on the busy main central High Street of the premier seaside resort of Margate on the popular Kent coast and with
excellent access to major road links (A28, A254 and A259 etc) this thriving Subway franchise currently serves a full and
varied in-house and takeaway menu of classic hot and cold Subs, wraps, salads, muffins, cookies and beverages
prepared freshly to order to its customers’ specific requirements in its extensively equipped catering facilities.

Subway(Margate) also provides a recently introduced and increasingly popular local delivery service and would naturally
furnish any enthusiastic hands-on purchaser with ample scope for continued growth and increased profitability not least
with regard to further development of its outside catering services in order to improve on already excellent turnover and
profitability the business has achieved since being established just two successful years ago by the current proprietor
with the aid of an experienced and motivated team of full and part time assistants who would be an asset to any
purchaser.
2. Ref: C3602 cont….

Financial Information

Current average weekly takings in the region of £4,000 with huge scope to increase. GP circa 70%.

Lease

The premises are being offered with the benefit of a long secure 15 year lease issued in 2006 with reviews every five
years.

Rent

The current rent stands at £18,000 per annum.

Business Rates

We are advised that the Business Rates currently stand at approximately £5,000 per annum

Trading Hours

Monday to Thursday 7.30am to 9.00pm: Friday & Saturday 7.30am to 10.00pm: Sunday 10.00am to 6.00pm

Amit92

ramenkid wrote: »

I know someone who was a Subway franchisee for 5-6 years. He sold his shops last year because of the recession. He thought by now he'd be a millionaire but no, he's gained good practice of running his own business but financial-wise, there was not much gain. Not worth it with all the time & hard work put in anyway. It's stressful, you need to learn all aspects of business to manage the shops & staff. You have to go to US to pass the Subway qualification before you even open your shop. Then there are loads of guidelines & standard to follow plus regular shop valuations. If you borrow a bank loan then you'll probably be paying yourself a low wage (not better than doing a normal job but with more stress) for the first few years just to keep the business moving, and it doesn't always make profit. If your shop don't perform as expected then Subway development agent will give you pressure. Basically if you don't do well, they can buy your shop or even close you down.
At 17, I advise you stick to higher education and get a professional qualification for the time-being.

In them 5-6years do you know how much he roughly made? Im sure its better than the standard £20-30k a year?

wuckfit

Amit92 wrote: »

I was thinking of buying a re-sale like this one for about £100k in a few years.

http://www.rtaonline.co.uk/business/26199.htm

The Business

Enjoying all the considerable commercial advantages of its outstanding trading position among other complementary
outlets on the busy main central High Street of the premier seaside resort of Margate on the popular Kent coast and with
excellent access to major road links (A28, A254 and A259 etc) this thriving Subway franchise currently serves a full and
varied in-house and takeaway menu of classic hot and cold Subs, wraps, salads, muffins, cookies and beverages
prepared freshly to order to its customers’ specific requirements in its extensively equipped catering facilities.

Subway(Margate)

also provides a recently introduced and increasingly popular local delivery service and would naturally
furnish any enthusiastic hands-on purchaser with ample scope for continued growth and increased profitability not least
with regard to further development of its outside catering services in order to improve on already excellent turnover and
profitability the business has achieved since being established just two successful years ago by the current proprietor
with the aid of an experienced and motivated team of full and part time assistants who would be an asset to any
purchaser.
2. Ref: C3602 cont….

Financial Information

Current average weekly takings in the region of £4,000 with huge scope to increase. GP circa 70%.

Lease

The premises are being offered with the benefit of a long secure 15 year lease issued in 2006 with reviews every five
years.

Rent

The current rent stands at £18,000 per annum.

Business Rates

We are advised that the Business Rates currently stand at approximately £5,000 per annum

Trading Hours

Monday to Thursday 7.30am to 9.00pm: Friday & Saturday 7.30am to 10.00pm: Sunday 10.00am to 6.00pm

basically, what you're buying for £100k is the right to use the name 'subway'.

You could set up a sandwich shop and advertise it for a good deal less than £100k

Amit92

wuckfit wrote: »

basically, what you're buying for £100k is the right to use the name 'subway'.

You could set up a sandwich shop and advertise it for a good deal less than £100k

Hmmm but that name attracts many people...it has a high reputation and good marketing!?