Listing ID: 80762
Business Overview
OWN THE #1 FRANCHISE. SUBWAY® is the #1 restaurant chain in total restaurant count with more locations than any other chain in the Quick Service industry. The SUBWAY® brand is the world’s largest submarine sandwich chain with more than 40,000 locations around the world. SUBWAY® is a leading choice for people seeking quick, nutritious meal options that the whole family can enjoy, always serving fresh, delicious, sandwiches made-to-order right in front of you.
This SUBWAY® franchise is a long established location that produces consistent traffic, sales and cash flow.
Financial
- Asking Price: $295,000
- Cash Flow: $87,481
- Gross Revenue: $445,982
- EBITDA: N/A
- FF&E: $55,000
- Inventory: $2,500
- Inventory Included: Yes
- Established: N/A
The franchise is strategically located on a high traffic corner that is close to one of the largest retail centers in the Treasure Valley along with a good blend of residential and commercial businesses in the area. The favorable lease rate is $2,496.25 per month with no NNN, no power, or other utility costs. The Lease rate increases 2.5% each year and the Lease Agreement has extensions through 2034.
The Owner enjoys the business but is now ready to sell this proven location.
The obvious strength is that SUBWAY® restaurant franchises are a proven successful business model with global brand recognition. This Franchise offers a highly visible corner location with easy access and traffic counts of over 20,000 vehicles per day, reasonable rent and stable cash flow.
An ideal buyer would be any entrepreneur with interest in a long established franchised QSR that enjoys instant name recognition, steady income and on-going franchise support or an existing Franchisee looking to increase market share and improve economies of scale. The buyer will have to be approved by the Franchisor, pay the $5,000 Transfer Fee and attend training. THE POSSIBILITIES A new Owner could run the business as an active owner/operator which would increase cash flow or operate semi-passively and keep the current management in place. Once in the SUBWAY® franchise system it is easier to scale the opportunity from owning one restaurant to several—or more.
Additional Info
The sale will include inventory valued at $2,500, which is included in the suggested price.
Why is the Current Owner Selling The Business?
There are all kinds of reasons people choose to sell operating businesses. Nevertheless, the real reason vs the one they tell you may be 2 absolutely different things. As an example, they may claim "I have a lot of various responsibilities" or "I am retiring". For lots of sellers, these factors stand. But also, for some, these might just be reasons to attempt to conceal the reality of altering demographics, increased competition, recent decrease in revenues, or a range of various other factors. This is why it is very important that you not rely completely on a seller's word, yet rather, make use of the vendor's response together with your general due diligence. This will paint a much more sensible image of the business's existing circumstance.
Existing Debts and Future Obligations
If the current business is in debt, which lots of companies are, then you will need to consider this when valuating/preparing your deal. Many businesses take out loans with the purpose of covering items like stock, payroll, accounts payable, etc. Remember that occasionally this can imply that revenue margins are too thin. Lots of companies come under a revolving door of taking on debt as a way to pay back various other loans. In addition to debts, there may likewise be future commitments to think about. There might be an outstanding lease on equipment or the structure where the business resides. The business might have existing contracts with suppliers that have to be fulfilled or might cause fines if terminated early.
Understanding the Customer Base, Competition and Area Demographics
Exactly how do operating businesses in the area draw in brand-new consumers? Most times, companies have repeat consumers, which develop the core of their day-to-day revenues. Specific variables such as brand-new competitors sprouting up around the area, roadway building and construction, and personnel turn over can impact repeat clients and also adversely influence future revenues. One vital thing to think about is the placement of the business. Is it in a very trafficked shopping mall, or is it hidden from the main road? Obviously, the more people that see the business regularly, the higher the possibility to build a returning consumer base. A final thought is the basic location demographics. Is the business placed in a densely inhabited city, or is it located on the outskirts of town? How might the regional typical family income impact future earnings prospects?
