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

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