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Multiple subway franchise?

Tourmaline

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Don't buy a franchise. Sell a franchise.
 

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FHOWARD2

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I would never recommend buying a subway franchise. The margins are simply too thin and you have to own more than a handful in order to make any money. And a franchise of any kind only grossing $265,227 is a red flag, but a Brick and Mortar fast-food chain only grossing that amount is an even bigger flag.

But aside from that there is simply too many unanswered questions here to give a good value. Like, how much are fixed expenses per month, how many employees, where is it located...etc.

I'd run far from this deal.
Asking price is $40,000. Owner is an absentee owner and has 1 FT and 4 PT employees and is located inside a Walmart.
 

PizzaOnTheRoof

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I will never own a franchise. You just give up too much control when it comes to branding, product, PR, and operations.
 

Tourmaline

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Look, you're not on the right forum to ask this to.


You're violating commandment #1.

#1: The Commandment of Control.
As an entrepreneur, you want to control your business whereas no one entity can put you into bankruptcy. For example, will a Google algorithm change kill your business? Will that MLM company go out of business and destroy all you worked for? Will Facebook change its Terms of Service for application calls and all of sudden you're out of business? Did that great affiliate program you've been hawking suddenly stop paying? Or change its terms and now you're shit-out-of-luck? The Commandment of Control eliminates 3rd party risks that can take down your business in one swift stroke. You can either paint your own big picture, or be a swab of paint in someone else's.
In general we don't want to supplement our income. We want to increase our wealth. We want to maintain or achieve an upper class lifestyle. We do not want to ever worry about money.

It doesn't matter how old you are, presuming you're still capable of learning and doing.
 

Walter Hay

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There is a magazine that will give you a little more insight into multi-unit franchising
Franchising.com: Your Complete Guide to Buying a Franchise Opportunity
The magazine is full of interviews of success stories of people who have done it...
There is a lack of diving deep into the process.
But, shows you what is possible.
Common thread... Private Equity partnerships, play in this field heavily.
Franchising.com are in the business of selling franchises. Look for unbiased opinions.
I was looking at purchasing an existing Subway which has the following: Any suggestions on its value?
Gross Revenue:
$265,227
Cash Flow:
$61,529

(Seller's Discretionary Earnings)
EBITDA:
Not Disclosed
Inventory:
$4,000
included in asking price
FF&E:
$15,000
included in asking price
See this post:
Rapid Scaling a business by franchising in which I give recent information about the plight of many Subway owners. It is not only in the USA. Their brand is in tatters all over the world.

Don't buy franchises. The real money is to be made by selling them, and for that you need to start or buy a business that meets, or will meet, the criteria that I refer to in my Rapid Scaling thread.

There is one exception to my rule "Don't buy franchises", and that is I recommend buying a Master Franchise if you want to grow a big business with big profits, but don't rush in. Details are explained in my book.

Walter
 

AubreyJ

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Asking price is $40,000. Owner is an absentee owner and has 1 FT and 4 PT employees and is located inside a Walmart.
The fact it's in a walmart changes things for sure. I'd still be leary...if he is an absentee owner and it's making him money, why sell?

My thought would be that it probably isn't making money, and absentee owner or not it's extremely difficult to grow sales.
 

Monkeycom

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I know MJ mentioned in his book that a coffee shop will not ever hit the fast lane, so a single subway sandwich shop wont either, but what if say we had 20 shops? Each with a average net of 5-6k a month will put you in a super fast lane. Anyone thought about this?
I'd have an issue about the control.
A wise men told me once "Bad businessman buy franchises. Good businessman create them".

You should read the @Walter Hay's book about franchises.

Best of luck!
 

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