Utah Real Estate

by philcampbell

Is America’s #1 Franchise, Subway, Worth the Investment?

Have you ever thought what it would be like to have America’s #1 ranked franchise as your own business? If so, then Sub sandwiches are what is going to be your new food. Subway, this company has been ranked consistently in the top 3 of America’s best franchises in the last 5 years. That stat and the great sub sandwiches of this company brought me to want to discuss how does one become a Subway franchisee, the cost and what are some of the biggest challenges in doing so.

I once spoke to a Subway manger and just asked him on average how many sandwiches do they sell on a daily basis, he responded with 300-500. I was blown away with that number I didn’t think this restaurant would sell so many sub sandwiches a day (this location was not in a prime location either). Once he told me that I began to search the net and the subway site to see what are the cost associated with owning a franchise.

The site said anywhere from -250K investment. I thought this was a lot but then again I thought about what the store manager told me and I immediately thought that this probably couldn’t be so bad.

The next issue that arose was what exactly would I need for an application. I saw that it didn’t seem so lengthy I just had to leave my information on the website and they would send more information directly to me. I saw that its process was similar to McDonald’s in that I needed some business experience, money and a strong will to succeed. So if you can make it through the process and you have plenty of capital then a Subway could be yours.

I noticed from different websites and just looking around that Subway could be facing a unique and serious challenge. This challenge was overcrowding.

Although I loved eating Subway it seemed as though every which way I turned there was a Subway. This led me to believe that if there were so many within a small radius could this affect sales and profits for the franchisees? Thus far I have not been given any solid evidence that can justify my idea but it’s just an issue I think is important for all prospective owners.

Lastly I think the Subway franchise is great for the right person who can afford the cost and who has the commitment. I think the ROI could potentially be great but it all depends on location and how much marketing is put in on behalf of the franchisee. There is a reason Subway is the number one franchise in America and I don’t see that changing for many years to come.

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