Subway Franchise...

wuckfit

Amit92 wrote: »

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

if you're in all the hours that the premises are open (i.e.a 70-80hr week), you'll find that your equivalent hourly rate of pay is probably less than minimum wage.

Running a business is many hours of hard hard graft, often for little reward. If your takings are down, the staff still need paid, meaning that you might have less to take out of the business to pay yourself.

You've got rent, rates, refuse collection, electricity, possibly gas, staff costs (and all the associated headaches that come with staff) ingredients and other supplies all to pay for, wastage, etc.

If you're doing this purely because you think you'll earn more money, then I think you might be in for a bit of a shock, I'm afraid.

wuckfit

Amit92 wrote: »

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

does it? I've never been impressed either time I've bought stuff from subway. Underwhelmed, I think is how I'd describe it. I prefer small independant sandwich shops. My experience has been that generally they offer better value for money, and an all round better product.

Is it really worth £100k to be part of a faceless chain pumping out junk? wouldn't you rather have your own name above the door, supplying a product you're proud of?

Amit92

wuckfit wrote: »

does it? I've never been impressed either time I've bought stuff from subway. Underwhelmed, I think is how I'd describe it. I prefer small independant sandwich shops. My experience has been that generally they offer better value for money, and an all round better product.

Is it really worth £100k to be part of a faceless chain pumping out junk? wouldn't you rather have your own name above the door, supplying a product you're proud of?

Hmmmm true, But the rewards in Business are great. The thing I hate about the smaller independent sandwich shops are that they don't turnover as much as a Subway in the same area for example. But don't have to pay fees/costs to the franchise.

ramenkid

Trust me, you'll be better off going to uni at your age.

No, he didn't make £30,000 a year. And he's a hard working honest man who kept his money in the business trying to make it work. Even if he did make £30k a year, it was not worth it with all the hrs & hard work put in (unless you only want to gain business experience the hard way). When he was on holiday his phone rung till 3am because all sort of problems with shops & staff. There are a lot of overheads/ cost/ expenses and I'm totally with wuckfit on this one. Location, management & staff will affect the profit but not much as Subway does all the advertising & you'll have to pay of % towards it. Remember, not every Subway make profit. Why do you think they are for sale if they are making good money?

If you want to make loads of money I think you should look somewhere else.

wuckfit

Amit92 wrote: »

Hmmmm true, But the rewards in Business are great. The thing I hate about the smaller independent sandwich shops are that they don't turnover as much as a Subway in the same area for example. But don't have to pay fees/costs to the franchise.

Always remember: Turnover for Vanity, Profit for Sanity.

How do you know how much the indepenent shops are turning over? Even if they're turning over half what the local Subway is turning over, their bottom line profit might be better. Being independent means freedom to adapt to your market. Being part of a franchise means that you have to push the current 'offers' and you're probably tied to what you have to buy, supplies wise.

As you said in your first post, your 17. To be honest, do your degree, research how franchises work. do all the sums. Run your figures by a few impartial people who run successful businesses to see if they stack up. If it looks like a go-er then do it.

Reading between the lines, It sounds as if this £100k is purchasing the franchise off somebody who's discovered that it doesn't make nearly as much money as they first thought.

ramenkid

wuckfit wrote: »

if you're in all the hours that the premises are open (i.e.a 70-80hr week), you'll find that your equivalent hourly rate of pay is probably less than minimum wage.

Running a business is many hours of hard hard graft, often for little reward. If your takings are down, the staff still need paid, meaning that you might have less to take out of the business to pay yourself.

You've got rent, rates, refuse collection, electricity, possibly gas, staff costs (and all the associated headaches that come with staff) ingredients and other supplies all to pay for, wastage, etc.

If you're doing this purely because you think you'll earn more money, then I think you might be in for a bit of a shock, I'm afraid.

Very true indeed.

Amit92

ramenkid wrote: »

Trust me, you'll be better off going to uni at your age.

No, he didn't make £30,000 a year. And he's a hard working honest man who kept his money in the business trying to make it work. Even if he did make £30k a year, it was not worth it with all the hrs & hard work put in (unless you only want to gain business experience the hard way). When he was on holiday his phone rung till 3am because all sort of problems with shops & staff. There are a lot of overheads/ cost/ expenses and I'm totally with wuckfit on this one. Location, management & staff will affect the profit but not much as Subway does all the advertising & you'll have to pay of % towards it. Remember, not every Subway make profit. Why do you think they are for sale if they are making good money?

If you want to make loads of money I think you should look somewhere else.

Thanks alot for your useful posts. But the franchise offers look so attractive in the long-term when you can expand.

wuckfit

Just realised that the link is for RTA. The same bunch of clowns who phoned me every week without fail to ask if I was interested in selling my business...

wuckfit

Amit92 wrote: »

Thanks alot for your useful posts. But the franchise offers look so attractive in the long-term when you can expand.

They're designed to look attractive, it's a sales pitch. the reality is very different.

If you want to expand, there's no reason why you can't do it yourself, starting with one shop, expanding to two, three etc at your own pace. that £100k will go a long way to getting you on that road a lot faster, believe me.

Amit92

wuckfit wrote: »

Just realised that the link is for RTA. The same bunch of clowns who phoned me every week without fail to ask if I was interested in selling my business...

Which type of business do you have..if you don't mind me asking?