Well ! beautifully elaborated. :) Thanks for these insights.
I own three Subway restaurants. I don`t want to make anyone mad, but some things posted here are either wrong or misleading. First off, I have been involved with Subway for 17 years, since 1989, and it is a good company.
The average store in the US does a little shy of $8,000/week. So for easy round numbers lets say the average store does $400k/year. It is relatively easy to pull 20% profit if you keep an eye on the business. I averaged 22.63% for the first quarter this year and I was in my stores an average of 10 hours or less per week so 20% is not that hard. But for the following estimate, lets use 20% average profit.
If you have a store that is merely average you should profit in the ballpark of $80k/yr.
Now lets say you were lucky enough to get a great location and you store does $15k/week (the area I am in has several stores that do this and much more in sales so it is very possible), well you should be making in excess of $150k per year.
Now, one or two stores are not going to make you a multi-millionaire, but you can make a comfortable living without much of a time investment.
Now lets switch gears. I`m not sure what article in Entrepeneur Magazine said Subway was rated one of the worst franchises? I would love to see a link to this article? Entrepeneur Magazine rated Subway the #1 franchise in their Franchise 500 for 2006. This was the 14th year Subway was rated #1.
Yes, Subway franchisees must purchase the food from one distributor, not from "the parent company". These prices are not "inflated". Infact, it`s just the opposite. IPC (Independent Purchasing Cooperative) was formed to negotiate prices and ensures all foods/supplies meet "Gold Standard" qualities. Some food distributors don`t want Subway`s business because the pricing leaves so little room for distributor profits. With over 26,000 stores we have tremendous buying power.
If you purchase a subway you do not have the rights to a certain territory. Subway does not have "regional managers", but does have "development agents" a.k.a. "DA". Development agents` "sole mission in life" is not just to open new stores. Yes, as their company given titles suggest they do focus on developing their given markets/territories. There have been some unhappy franchisees when stores were opened close to their existing store and sales were negatively impacted. However, this is not the norm. It depends on the DA. Most DAs are very conscious of their existing franchisees. DAs have contracts with Subway`s parent company, Doctor`s Associates Incorporated. Per their contracts, they must maintain a certain level of sales average in the market. Therefore, they can`t just go putting Subways on every corner to meet the development numbers they need. They have to be smart in their development.
If you are considering Subway, talk to existing franchisees in the area and ask about their satisfaction with the DA of that area. Development Agents are also expected to ensure franchisees are operating within company guidelines by having field reps that inspect stores monthly. They do much more than just open stores.
Again, I`m not writing this to offend anyone who posted above. I just want to make sure that anyone considering Subway has accurate information. I hope this helps.
About 2/3rd of all US businesses structured as partnership or sole proprietorship, if it was this then depending on the nature of your business, your business and personal liabilities could be at danger, even if you operate as an LLC or incorporated you can still be liable particularly if you have personally injured some or have acted in an illegal or irresponsible manner.
While there are a few omission in certain states, there is no requirement in the law that states that you must have liability insurance, but given the litigious nature of the society we live in, it make sense to protect yourself and your business from any possible legal warning .
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