I’m often asked the “How much can I make as the owner of a Subway® franchise?” question an awful lot. Questions about Subway franchise profit are common.
The reason: It’s so darn easy for people to visualize themselves owning a Subway® franchise…there are so many of them! (And, they’re usually busy.)
It never fails. Whenever I tell someone that I’m involved in franchising, one or more of the following questions are asked of me;
- “So, do you work with Subway® franchises?”
- “What do you think of Subway®, Joel?”
- “Can I make money with a Subway® franchise?”
- “Why are there so many Subway® franchises around?”
I suppose you’d like to see my answers now, right?
Subway Franchise Profit: How Much Can You Make?
1. I don’t do any work with Subway®. I’ve never brokered a deal with a Subway® franchise, and I’ve never been paid to help them with franchise marketing. (But, I’d gladly accept payment from them, if they wanted some marketing assistance!)
2. This is a tough one. What do I think of Subway®? MMMMM Well, for one, I was in the food business, and I have absolutely no desire whatsoever to own a food franchise. That’s just me. Now, if you ask me what I think about the operation…
Subway® has over 35,000 restaurants open in 95 different countries. I don’t. They may know a little more about growing a franchise empire than say, me. Now, inside the industry, they’re respected, based on their numbers, but that may be about as far as it goes. I’m not really sure how well they do their franchisee selection. In other words, I don’t really know if they consistently sell their franchises to the most-qualified candidates, or if they just like to see lots of franchises sold.
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It used to be pretty “easy” to buy a Subway® franchise. I’m not sure if it still is. I’m from the school of thought that franchisors should only sell franchises to the best of the best. I would actually like to see less franchises sold, but to higher-quality franchise candidates-who could potenitally make more profit. Franchisors generally like to see more franchises sold to more people.
Subway® is a very successful operation. They are usually right on top in almost every franchise rankings list.
Now, back to my answers…
3. Why do you want to know how much you can make as the owner of a Subway® franchise? (Like it matters.) Kidding. One way to find out is to see how many Subway® franchisees own more than one Subway® store. (Lots.) Another way is to ask. Carefully.
Here’s how to ask the “How much can I make?”owning a Subway franchise question.
4. As I stated up above, there are over 35,000+ Subway® franchises worldwide. That’s an amazing number. How does Subway® continue to add new franchises to the mix?
In a word; branding. The Subway® franchise name is recognized worldwide. Subway® has been around for over 40 years. That’s how. Subway® franchises are usually busy places. Subway® spends oodles on marketing and advertising.
Actually, the Subway® company doesn’t pay all the advertising fees out of their own pocket.
From the Subway® website, as of 2-8-2011;
SUBWAY® Franchisees pay 12.5% every week (gross sales minus the sales tax); 8% goes toward the franchise royalties and 4.5% goes towards advertising .”
Subway® is super-popular, and as a company, they’re super-successful.
Just do great research before you buy one. My top franchise research techniques along with the top questions to ask Subway® franchise owners can be found in my powerful franchise course.
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"I was pretty focused on a particular franchise opportunity when I reached out to Joel Libava. In the course of a 1-hour conversation, Joel was able to provide direct advice to help clarify the process for me and help guide me through the next steps in my vetting process. He even put me in contact with other professionals who were able to help educate me further in my particular industry. The time and money were well spent."
- Brian Grayson, Franchise Buyer, Cincinnati