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How much does it cost to be the franchise owner of a Subway?
Parents will help me start a franchise if I know what I am doing, how much does starting one cost?8 months ago - 3 answers
Seriously do not go there. My cousin owns a few subways and he severely regrets it and is selling up. So much is in their hands at a high level that things that affect your income are totally in their hands there's only so much you can do.
Before you do this I urge you to look at and read reports about the popularity and growth of fast food market. Invest in those instead and you'll have your answer.
decades ago in USA franchise fee only
now a day that will not even get u signs
go work in a franchise for a few years
b4 even considering get your own
price depends on location
Source(s)by Rob - 8 months ago
I have looked into the franchise advertisements for places like Subway in the past.
Here you go: www.subway.com/subwayroot/own_a_fra...
That is the legit Subway company's website and Frequently Asked Questions for those interested in a franchise. It kind of gives a picture of the cost and such. Realistically, it can be a minimum of anywhere from $50,000 to $100,000 that you have to have money-wise in order to be able to start out. Are you SURE your parents would help with that?
Note that a lot of these "franchise owners" make a decent living. They might make around $50K to possibly even $80K-$100K a year if they are really successful. But they also don't have a lot of time away from work. They might work 60+ hours per week. It is a very taxing job.
According to that site, the initial franchise *fee* alone and by itself is $15,000. That's just a fee and not related to the establishment itself. From the website: "With location flexibility and an easy-to-run operation built on simplicity and efficiency, our start-up costs are lower than most restaurants. The initial franchise fee is $15,000, and total investment can be as low as $78,600. Individual costs vary, so contact us for more details."
If you're in the USA or Canada, take a look at this: www.subway.com/subwayroot/own_a_fra...
It gives an estimate of the lowest cost and highest cost potential. For everything, it can range from $115,000 to $258,000 on the high end. It mentions on the site that they (Subway) have various banks and financial institutions that can give you loans. However, look at that charge in the last link. A lot of that money they want up-front in a "lump sum" for most of the fees. Most people with even 4 or 5 people cosigning on a loan together wouldn't get approved for such a massive loan, especially nowadays.
I wish you well, but I hope your parents are really financially blessed or something. Nothing is wrong with your ideas or ambitions. Just research to see what you'd be getting yourself into. Then there are ongoing operating costs WHILE you are paying your loan back to the financial institution. At $100K to $200+K loans, that's a LOT of interest.