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10 Replies Last post: Nov 5, 2007 12:17 PM by DeniseMM

SUBWAY FRANCHISE FINANCING

Jun 23, 2009 10:55 PM

Click to view jmk9911's profile Professional jmk9911 4 posts since
Jun 23, 2009
Hi, I'm in the preliminary phase of deciding to purchase a franchise. I have a bs in restaurant management and 11 years of management experience. I am most interested so far in opening a subway franchise due to their high success rate and my belief that they sell a good product. My question is, how to I come up with the capital to purchase one? I do own a home with approximately $200k in equity and I have a small amount of cash saved up. Will this along with good credit be enough? Does anyone have an idea what the start up costs may be? Will a high loan amount make it impossible to see a profit?Any input would be appreciated
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Click to view LUCKIEST's profile SCORE LUCKIEST 7,935 posts since
Aug 6, 2007
1. Re: SUBWAY FRANCHISE FINANCING Jun 24, 2009 8:09 AM
in response to: jmk9911
SUBWAY FRANCHISE FINANCING, Welcome

Go to Members page and share some info. Tell me more about your preliminary phase of deciding to purchase a franchise. Do you have a business plan?? An accountant?? a lawyer??

Do you know about SCORE?? SCORE is FREE.

Good luck, LUCKIEST
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Click to view jmk9911's profile Professional jmk9911 4 posts since
Jun 23, 2009
2. Re: SUBWAY FRANCHISE FINANCING Jun 24, 2009 8:51 AM
in response to: LUCKIEST
I do have a lawyer and an accountant. I am most interested in figuring out the numbers to see if its even possible for me to get involved in a franchise like this. My skill set is definately geared towards this type of a business and I understand that there are many variables the biggest being location. My initial concerns would be how to acquire to capital to move foward, how much money is needed to stay operational until profits are realized, and when do you start to see profits. I have not yet started a business plan. What is SCORE?
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Click to view LUCKIEST's profile SCORE LUCKIEST 7,935 posts since
Aug 6, 2007
3. Re: SUBWAY FRANCHISE FINANCING Jun 24, 2009 12:46 PM
in response to: jmk9911
SUBWAY FRANCHISE SCORE is FREE

*SCORE "Counselors to America's Small Business" is a nonprofit
association dedicated to educating entrepreneurs and the formation,
growth and success of small business nationwide.*
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Click to view riskman1's profile Authority riskman1 11 posts since
Jun 11, 2009
4. Re: SUBWAY FRANCHISE FINANCING Jun 24, 2009 3:39 PM
in response to: jmk9911
The group that is proposing the franchis to you should have a lot of the statisical data needed for your business model.
However LOCATION LOCATION LOCATION is always a crucial factor!
I would suggest meeting with current owners and I mean OWNERS.

Ask the tough questions........
what was your reserve cash allocaton to live on?
How long before you paid yourself?
Where did the money come from?
I could go on but unless you have sacrificed all options keep your personal assets out of the mix!
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Click to view jmk9911's profile Professional jmk9911 4 posts since
Jun 23, 2009
5. Re: SUBWAY FRANCHISE FINANCING Jun 24, 2009 10:01 PM
in response to: jmk9911
I did meet with an owner of 5 subway restaurants. He said he makes six figures from each store. I know six figures could mean a lot of different numbers but I'd be happy netting $100k. I'm just in the preliminary stage and I know I need to do more research as there are a lot of questions to be answered. My biggest question though was , Is it possible to start a franchise like this with limited funds and still pull a profit after paying all of my expenses including whatever loans i might need? If I need to save up $200k before I can start a franchise I doubt I will be able to do so. I did discuss location with the owner and he agreed that I had a good idea for a strong producer. I do have experience in this field so I am confident I can run a successful business.
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Click to view Cateyes825's profile Professional Cateyes825 3 posts since
Jul 8, 2009
6. Re: SUBWAY FRANCHISE FINANCING Jul 17, 2009 3:35 PM
in response to: jmk9911
I am asking the same questions about financing a franchise of Smoothie King. I would be interested in the information you find. I am in the preliminary stage of researching this venture for a store in the Southeast.
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