Although I get calls DAILY for numbers roughly speaking Subway and Quiznos concession purchases, I ne'er recommend that caste of concession. In reality I try and tempt my clients distant from this life sterilisation conclusion. There are much betters way of investment money, time, and slog.

A snack food sales outlet (or ANY concession) inevitably to be researched decisively BEFORE you buy one, and my job is to prepare you how. Let’s do the numbers:

If a sandwich store earns $40,000 for the month:

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7% sovereigns = $2,800

1% regional advertizement = $400

3% political unit advertizing = $1,200

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20% toil = $8,000

29% sustenance = $11,600

3% newspaper = $1,200

.3% account / paysheet = $ 300

10% charter / CAM = $4,000

2.75% security / misc. = 1,100

5% compensate SBA debt = 2,000

4.5% misc. bills (utilities, etc) = $1,800

.5% indefinite quantity = $200

1% food = $400

1% promo food = $400

1% comp provisions = $400

2.9% approval paper fee = $1,160

.4% coupons = $160

.5 diet cast-off = $200

IF a storeroom earns $480,000 annually, the concession administrator can look forward to to saunter away next to a net of 9.4%. That equals something like $45,120. If you in concert in an interest beside cheaper rent, there will be a better net profit bound.

These figures are genuine. These figures are why I NEVER talk over a snack food store as an investment. I ask my clients if they poverty to engineer $45,000 a twelvemonth after investment all that money, and doing all that employment. Some secretaries construct more than than that. You spend all that money, do all that work, and you receive less than a secretary? There are MANY new franchises that amount MUCH little and breed a MUCH bigger R.I.O. (Return on your Investment)

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