At this point in time, when the economy is not yet fully recovered from the past financial crisis, starting a new business can be a big challenge. The possibility of loses is enormous when you have no sufficient experience to run a new business. This is the reason why many budding entrepreneurs prefer franchise investment. Choice of Subway franchising is high despite the upfront payment of Subway franchise cost known as franchise fee. Most new fast foods now, like McDonalds or KFC emerge as a franchise store. Franchised establishments, including Subway sandwiches, have many advantages over regular businesses.
In the fast food business, Subway is very competitive. The franchise fee is reasonable and the usual ROI is high. These reasons are enough to entice anyone who thinks of a new entrepreneurial venture.
How much is the total Subway franchise cost?
Any business commences with start-up cost and franchised businesses are not different. Capital is required whether it is regular or franchised venture. In establishing a Subway fast food, the first in the list of capital expenditures is the Subway franchise cost. The franchise fee is pegged at $15,000. Payment of this fee will give you the sole right to own and operate a Subway branch in a location chosen by you and approved by the Subway Company. For a franchised business, your proposed location will be subjected to a feasibility study to determine if the branch will prosper in the location.
On top of the franchise fee, you have other start-up costs such as location rental, training of personnel and crew, inventory and supplies. For the first three months, you must be able to put up as much as $100,000. The amount can go up if your chosen location is bigger or high-priced area.
Benefits of a franchised business
You will realize that the Subway franchise cost that you paid for will bring endless opportunities to you as an inexperienced entrepreneur. If you will research, you will discern that the start-up cost is not as huge as other comparable companies. The franchisor will support your branch with all the management requirements. You will partake in seminars and undergo trainings to prepare you in the operation and management of your branch. In short, you will have hands-on experience before you operate. Advertising your company is no longer a problem as you use the branding and resources of the Subway Corporation. Your products would not be different from the foods offered in the other Subway branches as quality control will be strictly implemented by the mother company.
Healthy foods from Subway
One major come-on of any Subway branch is the healthiness of the food. As customers enter the shop, they will sniff the fresh bread and they would not be able to resist the fresh meats and vegetables that are lined up when you choose your order. The display in the shop is one selling point. With the health consciousness that had developed among people today, Subway foods had become more popular.
With focus on good food, there is room for your Subway branch. With the possible high ROI, you will believe that the Subway franchise cost can be recovered in no time and that you can reap the benefits in only a short time.