Amy Goley ⋅ Edmond , OK 2 Marine Holdings ⋅ 15 years experience

Subway has a great product with their franchising package. Rarely do their owners go broke...but few get rich either and most work close to 80 hours a week as well. So it will depend on a few things.
1- Why you are interested in doing it- do you have a passion for feeding people, offering employment to those otherwise without skills to get it, etc. If you are hoping to get rich, or have a lot of time with family, I would say no. See the math below...

The average Subway makes about 8,000/week and the highest averages are around 15,000/week. A GOOD profit margin is around 20%. I am going to go out on a limb and say most of those are owner/operated (meaning they run at a lower level of waste, such as condiments, beverages, and paper products because they are aware of the cost and control it by being there most of the time). That means that on the average end, the owner will bring in around $83,000/week. If he works a regular manager's schedule every week(55 hours per week) PLUS picks up one shift for an unfilled position and one shift for an employee that is ill, he will end up working around 70 hours per week and make a little less than $23/hr overall (he is the owner...no overtime for that guy). If you open a store in a prime location, your revenues go up but so does your rent and turnover. Those stores run around 18% in profit. At $15K/week, they bring in around $140K. Those are generally owned by owners with multiple locations who get the prime spots with seniority but do not run their own stores. They usually hire a manager who makes about $55K a year, meaning....either way, the company has a business plan that will keep you around 85K annually. My suggestion?

I am not sure what you did as an MOS, but using your GI bill to go to get a tradeschool education would look like this. This is what my employees around the country make right now.

Electrician I- $25/hr 55 hrs per week, with company truck and a 5% safety bonus on overall year's income= $52,000 regular pay +$29,250 OT pay= exact same as the first subway owner (but home more, and with a vehicle)

Welder- Structural- Traveling- $30/hr 80 hours per 6 day week 40 weeks per year plus $150/day in per diem (most use their own bunk trailer to be able to keep that instead of getting hotel) $48,000 regular pay + $72,000 in OT pay + $36,000 in Per diem =$156,000/year with 12 weeks OFF

Automation Technician- $38/hr 60 hrs/week + 8 hrs at double time + truck
79,040 regular+59,280 OT +31,600 in Double time = same long hours as the first subway owner, but with more than twice the income at $169,920.

Other things to consider are the new laws for offering insurance to employees (those profit margins will likely go down for Subway next year when you lose about 5K for each full-time employee you have), Workers Comp (someone slips and for 3 years you pay higher rates), and unemployment insurance (didn't have time to document when that employee was late because you were busy making sandwiches? Then finally you let him go and he says it came without warning and files a grievance?) Even if you get out of a settlement, you will be out several thousand in court fees and time plus lawyers.

I don't want to crush your dream in any way for sure, I just know that if it were me, I would get a skill like welding, sock away enough to buy one and finance a second one at the same time on a vet loan. Hire two managers and you will be bringing in $160 annually and working zero hours unless you want to work. Plus, you can always take a 60 day gig oversees as a welder for 40K if you want to get out of the house.

Just my two cents. :) Message me if you have any other questions!
amy@2marineholdings.com

James Mingey ⋅ Oregon City , OR Veterans Business Services ⋅ 25 years experience

Request their Franchise Disclosure Document ("FDD")which has info on current franchisees. Call several of them and ask them to share their experience so far.

Gilbert Haro ⋅ Newark , CA WFG ⋅ 20 years experience

Before starting any business I recommend working at the job before you sink any money into a business. This way you get to see how things work.

Thanks for serving our country.

Nanette Fabros ⋅ Woodstock , IL Salton Inc ⋅ 10 years experience

Hello Mr Vasquez and thank your for serving our country!

Wow! Opening your own biz? Me too... so some tips 4 ya....

Start watching Shark Tank on ABC! I love that show and you will learn LOTS! You will be running a franchise... so they will guide you ... but it is still a biz like any other. Know your competitors/know good customer service like no other, take an online community college - adult edu class on sba = small biz admin work, join sba.gov - great online info and video presentations...

Get on YouTube and research how to run a good biz/business owners/stuff like that.

Get Kindle books or real books on great former biz owners - my family fave is Mr Fred Smith of FedEx... he was in the military and that is why they have the motto "the world on time!" He is a renowned business - LEADER! The Apple Guy - Steve Jobs, people like that... Learn and Absorb!
I also love Daymond John - I call him Mr Fubu - join his Facebook page and learn learn learn! He is a Bajillionaire and started his FuBu biz as a youth and dealt with his dyslexia - but did not let it stop him!

Watch undercover boss - great show and so much info about having a great biz! I like the pretzel episode! The owner and the man he GAVE a franchise to --- they had a pretzel making competition! Great!

Think that is great and that you are interested in learning how to be a success is a giant step in the right direction!

Best of luck to your sir and thank you for protecting our country!