Any Subway Franchisees Here?

[TyCooN]

How is life as a subway franchisee?

 

[impolyt_one]

my best friend's dad opened like 3 or 4 and made some loot on them, and then got rid of them. They're about the cheapest turnkey business you can get into, innit? Jimmy John's is 'cooler' and tastes a lot better, but the sandwiches cost a little more and are smaller (8" I think) and the franchise cost was something ludicrous, like $300K compared to Subway's very low cost.

 

[TyCooN]

Originally Posted by impolyt_one

my best friend's dad opened like 3 or 4 and made some loot on them, and then got rid of them. They're about the cheapest turnkey business you can get into, innit? Jimmy John's is 'cooler' and tastes a lot better, but the sandwiches cost a little more and are smaller (8" I think) and the franchise cost was something ludicrous, like $300K compared to Subway's very low cost.
What happened?

 

[StephenHero]

Originally Posted by impolyt_one

and the franchise cost was something ludicrous, like $300K compared to Subway's very low cost.

We need a sin tax on brick patterned wallpaper so Subways stop opening.

 

[impolyt_one]

Originally Posted by TyCooN

What happened?

A divorce and then some mid-life crises, I believe

 

[Biggskip]

From what I've read Subway is one of the worst franchises one can buy into. The cost to open is relatively small, but the ongoing costs are very high compared with other similar establishments. There are stories out there of people who own a Subway franchise and only get paid the minimum wage they pay themselves as they work 80 hr weeks.

On top of this Subway is supposed to be one of the worst companies from the standpoint of protecting their franchisees from cannibalized sales. In other words, if you open store they have no qualms about letting somebody else open a store across the street from you.

 

[TyCooN]

Originally Posted by impolyt_one

my best friend's dad opened like 3 or 4 and made some loot on them, and then got rid of them. They're about the cheapest turnkey business you can get into, innit? Jimmy John's is 'cooler' and tastes a lot better, but the sandwiches cost a little more and are smaller (8" I think) and the franchise cost was something ludicrous, like $300K compared to Subway's very low cost.

Originally Posted by Biggskip

From what I've read Subway is one of the worst franchises one can buy into. The cost to open is relatively small, but the ongoing costs are very high compared with other similar establishments. There are stories out there of people who own a Subway franchise and only get paid the minimum wage they pay themselves as they work 80 hr weeks.

On top of this Subway is supposed to be one of the worst companies from the standpoint of protecting their franchisees from cannibalized sales. In other words, if you open store they have no qualms about letting somebody else open a store across the street from you.

Sounds like the franchisee impolyt knew was able to make his stores successes, but the ones biggskip read about didn't do so well.

 

[Biggskip]

Originally Posted by TyCooN

Sounds like the franchisee impolyt knew was able to make his stores successes, but the ones biggskip read about didn't do so well.

I think that it really depends on the circumstances. If you do your research and pick your locations well then maybe you can be the only place within a few miles that is serving sandwiches to hungry college/high school kids you can probably make some good coin. If you have enough coin to begin with to open three stores you probably have a good mind for business in the first place.

 

[impolyt_one]

Originally Posted by Biggskip

From what I've read Subway is one of the worst franchises one can buy into. The cost to open is relatively small, but the ongoing costs are very high compared with other similar establishments. There are stories out there of people who own a Subway franchise and only get paid the minimum wage they pay themselves as they work 80 hr weeks.

On top of this Subway is supposed to be one of the worst companies from the standpoint of protecting their franchisees from cannibalized sales. In other words, if you open store they have no qualms about letting somebody else open a store across the street from you.

this sounds about right too.

 

[FidelCashflow]

Originally Posted by Biggskip

On top of this Subway is supposed to be one of the worst companies from the standpoint of protecting their franchisees from cannibalized sales. In other words, if you open store they have no qualms about letting somebody else open a store across the street from you.

Odd. I know a guy who owns a independent pizza/burger place in a stripmall and his landlord told him he can't even sell subs because the Subway a few doors down has an agreement preventing anyone else in the same complex from selling subs, apparently it's their standard condition.

But of course you're talking about someone opening another Subway across the street which is different - I just find it odd how they would allow one and be so protective of the other.

There's a Tim Horton's by my house for the last 10 years which has always been busy, and another one opened about 100 feet away across the street and they even put up a giant sign outside saying "NO LINEUPS"

 

[Rambo]

Quizno's is WAY WAY WAY worse to own than a Subway. There are so many stories of that company ******** on their franchisee's.

 

[TyCooN]

Originally Posted by Rambo

Quizno's is WAY WAY WAY worse to own than a Subway. There are so many stories of that company ******** on their franchisee's.
I heard about this too. It's a shame because Quiznos makes better food than Subway, but they ended up getting technically knocked out by Subway.

 

[MrNiebla]

Subway really does let franchises open across the street from another one. In downtown Edmonton there are 4 in a two-block radius and 8 in the downtown core. There are actually 3 Subways in 3 neighboring buildings.

The labor is cheap as most of them seem to hire from local ESL schools. Every sign I see in the back of these restaurants is in both English and one or more Asian languages.

 

[x26]

Originally Posted by Biggskip

From what I've read Subway is one of the worst franchises one can buy into. The cost to open is relatively small, but the ongoing costs are very high compared with other similar establishments. There are stories out there of people who own a Subway franchise and only get paid the minimum wage they pay themselves as they work 80 hr weeks.

On top of this Subway is supposed to be one of the worst companies from the standpoint of protecting their franchisees from cannibalized sales. In other words, if you open store they have no qualms about letting somebody else open a store across the street from you.


Bingo ...

 

[GQgeek]

Originally Posted by Biggskip

From what I've read Subway is one of the worst franchises one can buy into. The cost to open is relatively small, but the ongoing costs are very high compared with other similar establishments. There are stories out there of people who own a Subway franchise and only get paid the minimum wage they pay themselves as they work 80 hr weeks.

On top of this Subway is supposed to be one of the worst companies from the standpoint of protecting their franchisees from cannibalized sales. In other words, if you open store they have no qualms about letting somebody else open a store across the street from you.

Yeah, there's 2 subways within 4 blocks on queen street in toronto.