How to buy a Subway franchise and succeed

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By jaf09
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buy a Subway franchise and succeed

"$5 ... $5 Foot long..." You've probably heard this jingle sung on radio and TV commercials Subway is running constantly across the United States. Its part of a successful advertising campaign by America's #1 franchise and a company that is rapidly expanding around the world. Is it for you?

Difficulty: Moderate

Instructions

Things You'll Need:

$100,000 - $300,000 initial investment
Some general business experience

Step 1

Consider whether a Subway franchise is right for you. Subway franchises appeal to many people because they can be run with as six to ten employees, do not require frying or cooking food (there is toasting of and baking bread), and have a relatively low start up costs. Some general business experience is recommended. The company is willing to consider people who want to make a Subway franchise their first business. About 70 percent of Subways are purchased by existing owners.

Before you proceed to consider buy a Subway franchise, make sure you have sufficient capital. Subway franchises are very affordable for a chain restaurant franchise. You will need only about $30,000 to $60,000 in net worth and liquid assets of about $80,000 to $300,000.

Some Subways are located in exotic locations, such as inside the Penatagon and do extremely well. (Many "exotic" franchise have higher start-up costs.) Subway also offers a good training program and has a well designed franchise website that explains estimated franchise fees. (See link below.)

Most Subway franchises offer moderate income potential. Some locations will have spectacular sales. Some will be duds. In general, Subway restaraunts will not be profitable as a McDonald's franchise. However, McDonald's franchises are far more expensive to purchase and more difficult to operate.
Step 2

Participate in online seminar and/or trade show. These are listed on the Subway website. Subway is selling franchises around the world and now has restaurants in 90 countries. Tradeshows are offered throughout the year in many countries around the world.
Step 3

Decide if you want to establish a new Subway franchise or buy an existing business. An existing franchise will have records to prove how successful it has been but will command a good will fee to the existing owner. In all likelihood, you will need to locate a site for your new Subway which your franchise fees will be used to establish.
Step 4

Research locations. The key to your success is location, location, location. You must carefully research locations, especially for a new Subway. Will your restaurant site have foot traffic? Are there other non-restaurants stores nearby to attract people to your site? Are their any other restaurants in the area or being planned nearby? What's the road access for your restaurant site? Is major road construction planned near or in front of your restaurant site?
Step 5

Potential franchisees must take the Subway 2-week training course and pass an exam. Part of this course is class room training and is offered in Miami, Montreal, and locations in China, Germany, and India. There may be other locations. Part of your training will include hands-on experience in a Subway restaraunt.
Step 6

After you have agreed on a Subway location, you will sign the franchise paper work and pay your franchise fees. Subway will begin setting up your restaurant unless you're buying an existing Subway.

Don't just buy a site because it is available! Research any site or exisiting restaurant you might be offered carefully to make sure it has profit potential. Subway claims there are over 2,000 people looking for Subway sites. Don't let anyone unload a dud restaurant or site on you!
Step 7

Start operating your store. If you've chosen a good site, your only challenge is hiring and retaining hard working and courteous employees.
Step 8

Maybe you've decided a Subway franchise is not for you. You could speak with a franchise broker for other franchise ideas. You might also consider franchises like McDonald's or 7 Eleven. See below for related links.