Franchising Subway Franchise

That's how it is, if you want to buy a subway in Vic. $350K you get a store with avg$10K sale every week. The ones that do $14K are considered really good and are above half a Mil.

The one near Deakin University on Burwood hwy does $14K/week and that guy owned 4 stores 2 years back and said he was really happy with how things were going and did not wanted to indulge in any more stores even when he could.

 

That is the reason they bought both the stores in country because of the low rent. Hence more profit.

 

No doubt the botox injections made you look younger LOL

 

I don't buy it, yipee you work for yourself but what does that mean for him:

1. 60+ hour weeks
2. Probably no holidays or sick days
3. Stress of when the next $ is coming in
4. Working weekends

Ok if he is making a pretty penny then its all worth it, but if he is just pulling in a standard wage then I would rather go work for someone else who pays me for holidays and sick days, and i don't have the stress of owning my own business. Plus I only work 40 hour weeks, weekends off as well....

Just to reiterate.. unless he is making lots of money.

 

think of it this way,

a franchise will sell at multiple of earnings as a rough rule,
if its selling for $80k, you might be profiting $50k including your wage,

so essentially you are buying a job,

if job freedom is important to you, then its fine, however if you are thinking of raking the $$$ in without doing any work with an $80k purchase, you are dreaming or are very lucky

personally, espeically for franchsies, I see no value add opportunities except through pure luck, eg the area booms, or the competitor sandwich shop closes down or the road you are on becomes a main road etc. etc. etc.

 

isnt post mix something like 10c per litre???

if the kid can go through 10c worht of softdrink chances are you wont see him again as he will be at the doctors getting diabetes medication!

 

maybe im different, but those figures sound average, not great but not bad,
say they are profiting $30k each after wages for example per shop, thats good,
buying another is good
but keeping on buying in to the same franchise is high risk for me,

one downturn in any of hte shops and then you are wiped out

i think its good to expand, but to keep on buying something like these ,especially franchsies is not good,

unless your aim is to buy, improve, and sell off

 

Making 60k profit from a store that cost 350k to buy isnt good imo. Also, is the wage a fair one tsking into account amount of work?

 

And the pain experienced by 7-11?

 

I just dont aee the appeal. You risk a huge chunk of your life savings, work almost 2 full time jobs in terms of total hours spent and you get paid way less than the average australian full time wage. No thanks.

Youre buying a full time job that pays you under 10/hr. No thanks

 

Very interesting to see you change from buying a taxi plate, cafe and now subway franchise. Good luck to you and hope you spend your money wisely.

 

Not sure about Subway specifically but for the average buyer its now $300 for a 15 litre postmix, which makes about 80 litres best case scenario - nearly $4 a litre. Cheaper to use cans/bottles bought from Coles than buy through Coke directly

 

No way. It cannot be that much.

You can buy softdeink for 1.30 per litre on special.

If post mix was more. No one would buy it

 

Not necessarily true. Getting product delivered and quick and consistent delivery counts for a lot. Cans and bottles provide a better product freshly opened out of fridge but deteriorate quickly, my nightclub and vast majority of others use postmix because it's easier, quicker, more consistent and you dony need much space to store it. Plus it gets delivered.