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SanDiego21
Does anyone know how nuch a Subway franchise owner can make per year?
First of all you need to buy into the Franchise. They dictate how you make the money and how much they get. All can be quite different. Generally, you pay for the franchise and the training and then they get a percentage of your sales, and this fee can go up as written in their contract.
Then you have the overhead like lease fees, utilities, inventory, maybe equipment if not included in Franchise, and advertising.
All this has to come off the top before you make money. What you make is the net and it can depend on location, traffic, competition, and time of year. These are all important in deciding if this franchise will work for you.
And before you buy the franchise will look at your financial worth before they decide to sell to you. In other words you need to qualify with them first. They do not want someone who can not maintain the business over a long period of time. You need fianancial reserves (money). You may make no money the first year and after that it slowly grows as most businesses do.
If you do not pencil out on paper good enough the Franchise will decline you for the sale. They want you to represent the name of Subway well. They will even look at your track record in business. Because if you fail, they suffer too.
How much can you make per year? That is hard to say. It all depends on the factors listed above like location and competition. Subway will give you that information when you pick your location. They can calculate it out for you before you fill out the papers to apply.
This is a serious decision and not to be taken lightly. When you get locked into a franchise it is not so easy to get out. You can sell it off but the new buyer must meet all requirement and be accepted by Subway too. It is hard work and you will be working long long hours. Make sure you are ready for this and can do so.
And talk to your attorney first.
Good Luck
WitchTwo
Go to Entrepruener magazine, they rated Subway the number one franchise in the country. From experience though, you need to talk to owners in your area and surrounding area to get the real info!
JC is the MAN
Your first year you would probably not make more than $50 grand. Give time for the franchise to make money for its self you will make be making 6 digits.
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