Originally posted on 08/05/2013:

This is such an uninformed thread that it's laughable. A well run Subway shop can be a profitable business, but it's not as if a single franchise is creating a lot of millionaires. You haven't even scratched the surface of what it costs to run one. In addition to a big franchise fee up front, which must be paid in cash, you have to buy all of the equipment, sign a lease for the shop, build the leased space to specs, and begin to promote a business which takes advertising dollars. Even after you open the doors, you continue to pay rent, utilities, insurance, taxes, and franchise fees just to operate. Most operators end up taking out a loan to get started, so subtract debt service from your operating profit, and you might just generate enough cash flow to live a decent lifestyle and get a return on your investment. Of course when you work in a place like this, you don't think of these issues.