Author Topic: Memphis, TN - Selling a Subway  (Read 1998 times)

MustachioedPistachio

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Memphis, TN - Selling a Subway
« on: November 24, 2020, 09:05:55 AM »
Hello fellow Mustachians!

Perhaps a handful of you may be interested in giving a Subway franchise a whirl.

My brother and I own two Subways in the Memphis market. We have long since determined that one is plenty for our respective financial goals. From early 2018, we both operated the store(s) for around a year, and then I took up a regular W-2 job while my brother continued to manage the stores (I got bored).

Fast-forward to the waning months of 2020 (thank god!), and, between COVID, staffing, and Subway HQ shenanigans, we've reached our limit. We are accelerating plans to sell one of the stores.

I figured I put this out here for MMMers to have a look. We are ready for "fire sale" pricing. Cheaper than a new Honda Accord type of deal. We really just want it off our plate.

Please PM if you'd like to know more. I may add more to this posting if there's enough interest, but, I doubt there is actually a subset of MMMErs looking to get into a fast food franchise, in Memphis, during a pandemic. Just a hunch :)

dandarc

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Re: Memphis, TN - Selling a Subway
« Reply #1 on: November 24, 2020, 09:58:05 AM »
You're doing this wrong - it is the potential buyer who is supposed to be writing stuff like "this business is worth less than a Honda Accord".


Alternatepriorities

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Re: Memphis, TN - Selling a Subway
« Reply #2 on: November 24, 2020, 10:51:50 AM »
Maybe if you throw in a free PB & Mayo sandwich :)

That other thread comment is a lot funnier in this context. In all seriousness I do enjoy subway when I need something in a hurry, and I am curious about the process of selling a franchise, but it's not the time or place for me. Best of luck with the sale.

MustachioedPistachio

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Re: Memphis, TN - Selling a Subway
« Reply #3 on: November 24, 2020, 02:06:48 PM »
You're doing this wrong - it is the potential buyer who is supposed to be writing stuff like "this business is worth less than a Honda Accord".

"But more than a Honda Civic!" Hahaha

MustachioedPistachio

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Re: Memphis, TN - Selling a Subway
« Reply #4 on: November 24, 2020, 02:09:53 PM »
Maybe if you throw in a free PB & Mayo sandwich :)

That other thread comment is a lot funnier in this context. In all seriousness I do enjoy subway when I need something in a hurry, and I am curious about the process of selling a franchise, but it's not the time or place for me. Best of luck with the sale.

I'll throw in a free Subway if you buy the PB & Mayo :P

Thanks for the well wishes! :)

uniwelder

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Re: Memphis, TN - Selling a Subway
« Reply #5 on: November 25, 2020, 08:46:21 AM »
I'm also not looking for a Subway, but am curious about the sale.  I thought take out sandwich shops were supposing to be doing pretty well in Covid times?  That more people were visiting take out food places as an alternative to restaurants.  I suppose this is very location dependent--- maybe you are very close to an area that attracts office workers who might all be at home now.

That said, maybe if Subway isn't doing much business, that explains why I've been getting some great coupon deals in the mail recently. 

MustachioedPistachio

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Re: Memphis, TN - Selling a Subway
« Reply #6 on: November 25, 2020, 10:37:18 AM »
I'm also not looking for a Subway, but am curious about the sale.  I thought take out sandwich shops were supposing to be doing pretty well in Covid times?  That more people were visiting take out food places as an alternative to restaurants.  I suppose this is very location dependent--- maybe you are very close to an area that attracts office workers who might all be at home now.

That said, maybe if Subway isn't doing much business, that explains why I've been getting some great coupon deals in the mail recently.

It's much less about how well the shop is doing and much more about how much PITA (like what I did there?) we are willing to continue to put up with. It's not worth it from a physical and mental health perspective. We've had this second store up for sale since before COVID. A recent staffing event has greatly accelerated our timeline to make the sale happen. It also has to do with fairness between my brother's and my respective financial and lifestyle choices.

But - to your point - there are many shops in our area that are going gangbusters. Most have drive-thrus. Neither of ours do. We liked Subway for the "healthier" options, including at least getting out of the rolling, climate-controlled couch to pick up some food, so having no drive-thru was a perk to us (in hindsight!). There are others that are ghost towns, as they are located in white-collar business parks that's moved to nearly full remote work. One of our shops is in a working class neighborhood where we live, and it's doing ok as most of the folks can't work remotely. The other that is for sale is in a more middle class residential area between commercial nodes and does ok.

As for the couponing...that's Subway's HQ MO. It's a point of major contention among the franchisees. It's always a sale. Never just "Hey, this is new and good/awesome - come try it! Load it up with fresh veggies!". There are many non-participating shops these days.

Thanks for stopping by!

norajean

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Re: Memphis, TN - Selling a Subway
« Reply #7 on: March 31, 2021, 09:10:26 PM »
What’s your annual EBITA?

MustachioedPistachio

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Re: Memphis, TN - Selling a Subway
« Reply #8 on: April 08, 2021, 12:47:34 PM »
What’s your annual EBITA?

For this particular store, Q1 results will annualize to around $20K, assuming consistent, mediocre sales.

Dicey

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Re: Memphis, TN - Selling a Subway
« Reply #9 on: September 14, 2021, 07:39:45 AM »
Hey, MP, any luck selling the franchise? 

MustachioedPistachio

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Re: Memphis, TN - Selling a Subway
« Reply #10 on: September 14, 2021, 04:02:45 PM »
Hey @Dicey ! Thanks for checking in!

I was planning on updating this thread with some good news once the money hits the bank... :)

Expecting to close by the end of October!!

Dicey

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Re: Memphis, TN - Selling a Subway
« Reply #11 on: September 14, 2021, 05:30:33 PM »
Fingers crossed!