Top 4 Reasons to NOT Buy a Subway Franchise
67.7 هزار بار بازدید -
7 سال پیش
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UPDATE - SUBWAY FRANCHISE CLOSED
UPDATE - SUBWAY FRANCHISE CLOSED ANOTHER 909 STORES IN 2017 - WHO TOLD YOU FIRST OVER 4 YEARS AGO? WE DID!!
Here at Franchise city we help investors find the right franchise, a lot of that has to do with educating people as we do in these videos on our Youtube channel. One of the brands we are asked about most often is the Subway Franchise. Now there is no question Subway as a corporation is super successful, but does that bear any relevance to you as an individual unit franchise owner?
We all know the high points about Subway, in this video we will look at some reasons you may not want to open one.
1. Massive Competition. If you live in any major city and have a desire for a Sub you won't drive more than a couple of blocks before seeing another Subway Franchise. Thatis convenient for you as a consumer but for franchisees not so great.
When you combine the fact that your store is competing with many other Subways -
with the very low margins seen on promotions like the $5 sub - you have a recipe
for working hard for little pay. Additionally Subway as a corporation despite it's
massive success has seen revenue declines the past few years which brings us to our next point - store closures:
2. Store Closures and Corporate Decline. Subway reportedly had 359 store closures in 2016.The first time ever. For the past 4 years we have been cautioning Subway investors on what appeared to be a potentially over saturated and overheated market.Despite all this information being publicly available you still see people lining up to buy a Subway. And you see this type of irrational investor behavior in real estate speculation as well as in stock market investing. Right before a crash, or a decline there is a massive influx of investors who throw their money at this supposedly "incredible opportunity". But the opportunity only looks incredible because everyone is doing it. Once it hits bottom people learn their lesson. And you can't blame investors as they see all these franchises everywhere and assume that means guaranteed success. What that in fact means is intense competition.
cont'd at http://www.franchise.city/subwayfranc...
http://www.subway.com
https://www.qsrmagazine.com/reports/q...
Here at Franchise city we help investors find the right franchise, a lot of that has to do with educating people as we do in these videos on our Youtube channel. One of the brands we are asked about most often is the Subway Franchise. Now there is no question Subway as a corporation is super successful, but does that bear any relevance to you as an individual unit franchise owner?
We all know the high points about Subway, in this video we will look at some reasons you may not want to open one.
1. Massive Competition. If you live in any major city and have a desire for a Sub you won't drive more than a couple of blocks before seeing another Subway Franchise. Thatis convenient for you as a consumer but for franchisees not so great.
When you combine the fact that your store is competing with many other Subways -
with the very low margins seen on promotions like the $5 sub - you have a recipe
for working hard for little pay. Additionally Subway as a corporation despite it's
massive success has seen revenue declines the past few years which brings us to our next point - store closures:
2. Store Closures and Corporate Decline. Subway reportedly had 359 store closures in 2016.The first time ever. For the past 4 years we have been cautioning Subway investors on what appeared to be a potentially over saturated and overheated market.Despite all this information being publicly available you still see people lining up to buy a Subway. And you see this type of irrational investor behavior in real estate speculation as well as in stock market investing. Right before a crash, or a decline there is a massive influx of investors who throw their money at this supposedly "incredible opportunity". But the opportunity only looks incredible because everyone is doing it. Once it hits bottom people learn their lesson. And you can't blame investors as they see all these franchises everywhere and assume that means guaranteed success. What that in fact means is intense competition.
cont'd at http://www.franchise.city/subwayfranc...
http://www.subway.com
https://www.qsrmagazine.com/reports/q...
7 سال پیش
در تاریخ 1396/04/30 منتشر شده
است.
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