Subway Franchise...

A question about : Subway Franchise...

Hey all,

Basically I am 17 years-old, studying A-levels in Economics, Maths and Politics with an AS-level in Philosophy. Been offered University places at Russell/1994 Group Universities to study Economics.

I am thinking of declining my University offers and going into employment for about 2years and then hopfully gaining business finance and buying a re-sale Subway Franchise that turnsover about Ј4-10k a week and start my rich dreams from there?

Or should I just continue in education?

Also if anyone has experience/advice on Subway Franchises..all offerings are appreciated!

Thanks

Best answers:

• first of most franchise require you put in a set figure, (40% plus) of your own money and find the rest from finance sources, so if the franchise is 100k to buy you will need 40k of your own money before you can even look at it, and you would borrow the remaining 60%.
  I would continue your education as you are not likely to go back to it later in life
• but you dont have pay back the loans until your earnings reach a certain amount (or atleast thats how i believe student loans to work). I would always encourage anyone who has started down the long path of additional education to continue whilst you have no responsibilities, i decided to take some time out and thought about going back by the time i decided to go it was too late, i couldnt get funding and i couldnt afford it from my own pocket, then children came along so even less money.
  I run my own business now (last 3 years) and its very hard work and very demanding, your life when you start a business is just that the business is your life to begin with as you have to keep your foot on the gas and hold on tight.
  Where did you get the 4-10k a week figure from for a franchise?? from subway marketing i bet, do forget that whilst they say that is an achievable figure its the expenditure they dont tell you, 4-6 full time staff (8 part time) is going to take around 1k a week from that figure, the rent, bills, suppliers and subways cut themselves could you leave you with very little, so your rich dreams maybe further on the horizon than you think!!
• Get the costs of sales, direct costs e.g. expenses and profit for the business and see if its worth it. But good luck.
• I know someone who was a Subway franchisee for 5-6 years. He sold his shops last year because of the recession. He thought by now he'd be a millionaire but no, he's gained good practice of running his own business but financial-wise, there was not much gain. Not worth it with all the time & hard work put in anyway. It's stressful, you need to learn all aspects of business to manage the shops & staff. You have to go to US to pass the Subway qualification before you even open your shop. Then there are loads of guidelines & standard to follow plus regular shop valuations. If you borrow a bank loan then you'll probably be paying yourself a low wage (not better than doing a normal job but with more stress) for the first few years just to keep the business moving, and it doesn't always make profit. If your shop don't perform as expected then Subway development agent will give you pressure. Basically if you don't do well, they can buy your shop or even close you down.
  At 17, I advise you stick to higher education and get a professional qualification for the time-being.
• The only people who get rich from franchises are the ones who 'sell' them. those who purchase a franchise often end up slaving to make ends meet.
  If you want to get into the sandwich business you'd be better off starting off with a mobile service. Find some offices, or better still a business park / industrial estate, and go round them of a morning with a basket of fresh rolls, sandwiches, baguettes, wraps, home made soups etc. After a few weeks once you become established, you'll get to know your regulars, be able to take orders and things.
  You have to start pretty early in the morning to prepare everything, but by mid-day, your run is finished and you can head off to the supermarket for the following day's supplies.
  The advantages are: few overheads, no premises, cash transactions (no costs for merchant services), captive market, afternoons off, all your profit's yours. All you need is a reliable-ish car to get you to where you need to be.
• I was thinking of buying a re-sale like this one for about Ј100k in a few years.
  https://www.rtaonline.co.uk/business/26199.htm
  
  The Business
• Trust me, you'll be better off going to uni at your age.
  No, he didn't make Ј30,000 a year. And he's a hard working honest man who kept his money in the business trying to make it work. Even if he did make Ј30k a year, it was not worth it with all the hrs & hard work put in (unless you only want to gain business experience the hard way). When he was on holiday his phone rung till 3am because all sort of problems with shops & staff. There are a lot of overheads/ cost/ expenses and I'm totally with wuckfit on this one. Location, management & staff will affect the profit but not much as Subway does all the advertising & you'll have to pay of % towards it. Remember, not every Subway make profit. Why do you think they are for sale if they are making good money?
  If you want to make loads of money I think you should look somewhere else.
• Just realised that the link is for RTA. The same bunch of clowns who phoned me every week without fail to ask if I was interested in selling my business...