Pet Franchise

Subway- Great Franchise, Though Minimal Variation

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There is no denying that Subway is an amazing franchise. It has been in business since 1964 and offering franchising since the 70’s. In this time the company has made a huge name for themselves and has a cult-like following. There are a few things to think about before you start the process of buying a Subway franchise.

 

What Makes Subway a Great Franchise

franchise-questionsThere are many aspects of Subway that make it attractive to prospective franchise buyers. They look at the company and they see that it is an international company that has instant brand recognition. They see that the Subway franchise fee is competitively priced with the industry and the startup costs are lower than some of the other fast-food chains out there, such as McDonald’s.

 

Along with the branding benefits of a Subway franchise, prospective franchisees love the quality of the food served at these locations. The company is known for their high quality ingredients and a focus on healthier choices for food which is another reason so many people choose to open a Subway restaurant. You can make healthier sandwiches, salads and more for people every day. If food, or more specifically sandwiches, are something you feel passionate about then you may consider buying a Subway franchise.

 

But… What Happens When Monotony Sets in?

While a Subway franchise can be a great money maker for you and make you feel great that you are feeding people healthier alternatives, there will come a point where you will feel like you just can’t make another sandwich. It becomes the same thing day in and day out. Same sandwiches, different faces. As amazing as the Sweet Onion Chicken Teriyaki sub is there are only so many you can make before you feel like you are losing your mind.

 

When you reach this point, there are two options available to you:

 

  1. Hire new employees so you don’t have to make sandwiches- This sounds great in theory but this also reduces the amount of profit which means less money in your pocket.
  2. Continue making subs until you lose your mind- Obviously this is not the ideal solution but what else can you do if you can’t cut your profits? On the plus side you can count the number of months you have left in your 20-year Subway franchise agreement.

 

Splash and Dash Eliminates the Repetitive Tasks

If you are still looking for a franchise and have not signed your contract for a Subway franchise, then you should know the alternative the inevitable boredom this franchise can cause. The alternative is Splash and Dash Groomerie & Boutique. This is a dog grooming franchise that has revolutionized the booming (and recession-proof) pet industry.

 

The reason this franchise is able to eliminate boredom by having plenty of different activities in the shop. The stores offer a full grooming salon so one day you may be giving a bath to a Shiba Inu and the next you may be doing a showroom cut on a Yorkie. The different variations with this help to keep the business exciting.

In addition to this, you will avoid boredom by getting more time to connect with your clients. Sure in a Subway franchise you will have regulars but you see them for a minute while you make them food and then they are gone. At Splash and Dash, the signature bath membership allows you to see the same customers on a regular basis so you get to know them. The interaction with the people and their dogs is more involved and creates a greater relationship with the customers.

Subway May be a Great Revenue Generator, but Do You Have Enough Money?

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Franchise ownership can be a dream come true for people who want to break out of the wage they are stuck in and have financial freedom. Franchising gives you instant brand recognition along with the blueprints for success. This is why so many people turn to franchises to achieve their dream of going into business for themselves. One of the ways that you can do this is to buy a Subway franchise. The thing to understand with this is whether you can afford to do this.

 

The Price of Ownership

If you want to open a Subway franchise costs are one of the first things you need to think about. There are many costs that need to be understood when you want to buy a Subway franchise. Many people think only of the franchise fee but there is more to it than this. You need to think about the initial costs of starting the franchise, which includes aspects such as construction, equipment, permits, and more.

 

While the franchise fee may be small at $15,000, the initial investment can be anywhere from $114,800 to $258,300. Now when thinking about these numbers when figuring out how much to open a Subway it is also important to realize that if you do not qualify for their lease program then this can cost up to $72,000 for equipment purchase.  

 

The Continual Drain

The franchise fee is something else you need to think about when you want to buy a Subway franchise. There are many continual drains on your potential revenue you need to think about.

 

Royalty and Marketing Fees

One is the costs to corporate. You will pay 12.5% of your gross weekly revenue for the royalty fee and marketing costs.

 

Food Waste

Along with this you have to think about the waste you will go through in the store. Every year millions of pounds of food are wasted every year in the United States. It is estimated that the average restaurant will waste 10% of their food. This is more money that you are simply throwing down the drain.

 

Employee Turnover Rate

Another thing to consider when you want to buy a Subway franchise is the turnover rate of employees. It costs you money to hire someone and train them. Unfortunately the fast food industry has one of the highest turnover rates for employees. This means you can spend a ton of money on training and hiring employees that only stay for a couple days.

 

Can You Afford to Buy a Subway Franchise?

As you sit here reading through all the costs of not only opening a Subway franchise but also the continual costs of running one, the real question becomes- do you have the finances needed to make this a reality? You do not want to completely drain your finances, especially if you have a family, just to make ends meet with your business. More than likely the reason you went into business was to have more money in your pocket, not less.

 

If you look at this and you are worried about where you will get the money to pay off the loans on your home, the loans for the franchise, and just make the everyday necessities happen with this knowledge about the franchise, then maybe you should consider a different franchise.

 

So What Are the Alternatives?

shutterstock_203363152If you are looking for a franchise that will not cost you a ton of money to get started and has minimal waste, then a Splash and Dash Groomerie & Boutique franchise may be right for you. The start-up fees are so low that the high-end costs for Splash and Dash Groomerie & Boutique are around the same cost as the low-end start-up costs for Subway. There is not as much waste and the recurring revenue model of the business means you will have more reliable revenue at your franchise location.

 

 

There are many reasons why people are turning to Splash and Dash when it comes to franchise ownership. Here are some of the main reasons why:

 

  • Low startup costs
  • Affordable royalty fees
  • Support from the franchisee
  • training for you and your employees
  • Recurring revenue model
  • $75 BILLION industry
  • Customers love the membership model which boost sales in stores