Are SUBWAY Franchise Owners Happy?

Are you familiar with the Subway franchise opportunity?

Are Subway franchise owners happy?  Why or why not?

Please share your thoughts and opinions below.

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In the 30 years since it launched its much-hyped Franchise 500, Entrepreneur magazine has named Subway the #1 franchise 16 times.

According to Entrepreneur’s Subway Hits the Spot, “…In late 2008, the company surpassed the 30,000-restaurant mark. It has 1,600 stores scheduled to open this year. Another 2,400 franchisees have bought in and are waiting in line to open. And it’s on pace to overtake the king of fast food, McDonald’s, in outlet numbers within five years.”  Despite a disastrous economy, Subway CEO Fred DeLuca says 2008 was Subway’s “best year ever.”

DeLuca claims their secret to success is the value Subway provides to their franchisees and the simplicity of the concept:

“We work hard to be extremely efficient,” he says. “We give great value for our franchisees: They can build a store for well under $200,000. And we have extremely simple operating systems. The preparation is mostly done in front of the customer. That simplicity is really what attracts our franchisees. You see it, and you can do it”.

Detractors claim that the hype has been bought and paid for, that the Subway franchisor is tyrannical and the system is designed primarily to make money for the franchisor at the expense of Subway franchisees.

WHAT DO YOU THINK?  DO YOU OR HAVE YOU OWNED A SUBWAY FRANCHISE?  ARE SUBWAY FRANCHISEES HAPPY?  WHY OR WHY NOT?

logo:  Doctor’s Associates

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  • My 6 yrs experience in subway restaurant as an owner is absolutely horrible and nightmare. I have 3 store in town and I am counting every single day to sell my store as soon as possible. The whole subway system is created so that they definitely make money (12.5 % royalty + advertisement fee) but not the owners. They will send you the most nasty unprofessional people they call “field consultants” to harass you every month, no matter how hard you try to keep the store in compliance they will wait until you make some mistake and write yo up and harass you . The head quarter will send you termination letter time to time threatening to take your store. DO NOT do subway franchise. This is not designed in honest.

  • I was going to contact subway for consultation in purchasing a subway. Now that I have read these articles from franchisee owner, I will never own a subway nor step foot in one to eat ever again.

  • Thank you for the honesty of the people of the evaluations of the subway franchise and the sharing of their experiences.

    I was going to purchase a Subway and in fact had a meeting sometime this month but after reading this I really believe this is a godsend for me not to do it.

    I want to do the right thing I don't want to waste my money and be going out of business I work too hard for that.

    Thank you for your bravery and your truth and your willingness to share your experience

  • If you want to become a slave of subway corporate and like slavery then become the subway owner. That's all I can say.

  • got into this business back in 1995 when things were simple. worked hard and put in the hours. Built my empire from nothing to five stores. Worked through my loans. As the years went by I realized my profit was getting thinner as wages and competition went up. To make the long story short. I went from being on top of the world to a bankrupt husband and father of two with no retirement.

    DO NOT GET INTO SUBWAY! They will paint a pretty picture and once they drain you of all your money they won't hesitate to throw you to the carve. Its all politics. Its not what you know or how much money you have. ITS WHO YOU KNOW.

    The DA in SoCal will treat you like you are trash as if they own you. They will buy or built all the high volume stores and will allow franchisees to have any left overs.

  • Subway will exploit you and squeeze you till they can get a single dollar from you and throw you in the trash at the end. It has come so far by exploiting so many poor franchisee and advocates itself as a healthy option and environmental friendly, it's all crap. But the people are understanding about this greedy company slowly and it's going towards quiznos path. DO NOT own subway franchisee.

  • Subway restaurants are shrinking in USA . There are so many subway restaurants are on sales with one-third of the price and yet no one is buying, main reasons are, you don't make any money with this franchisee now at all and the subway will treat you nasty, harass you all the time. Do some research. There are so many subway restaurants have been closed permanently and it's shrinking the first time in it's history.

  • Subway is the financial predator for it's franchisee. It can get your store anytime they want by throwing you the negative evaluations and drag you to the arbitration. They loot you almost of 13% off the weekly sales, and with the current sinking sales and labor cost, it's impossible to make any profits with this brand, it's very likely that within 3-5 yrs , huge chunks of subway stores in USA will close down. The store's market value is already less than one-thirds of original price and yet no one is buying them.

  • I worked at a Subway for about 3 months. It was a total disaster. The Texas franchisee overpopulated the area with Subway stores, not a particularly dense area but there were half a dozen Subways in a 2-mile radius. The management of every store was up to a manager, it would range from well-run stores to a total disaster, and usually they were overworked and underpaid...the franchisee would arbitrarily decide about items to stock (there were NO decisions made in-store), and the in-store management only had very limited hours. We were one of the better stores but some of the stores were barely breaking even, yet they kept them all open.

  • i am on my second year now and going to my third year. no matter how hard to try to keep the store going, the field consultant will dig some BS to write you so you will be out of compliance. they control everything like where you buy the produce and what soda you are allow to sell to how many flavor of chip. if they see food you bring from home, they will accuse you of selling in subway rest.....oh that happen many time already just so you know........coupon and discount that you have to give out, you don't even get the credit back for the food you just give out for free don't matter where the coupon or the subway reward program where they earn the points from .....and you have to accept the coupon customer call the corp to complaint and u have to deal with more BS from them. it really got to a point to say that you don't even own the store, you are just a low paying employee. every week 12.5 % gross sale go to them not net sales. you have to give them your employee schedule every week ??? every equipment you have to buy from them. ex. tip jar......$20.50 included shipping???? the hell???? why because it have a subway logo??? even if your business is failing.... you can just quit , you have to get there approval before you give up on your business. i still in business as of today and how i don't know.........please please don't get in to a subway.......people complain that divorce is bad, subway agreement is 100 time more worse......

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