Author Topic: Memphis, TN - Selling a Subway (SOLD!)  (Read 7127 times)

MustachioedPistachio

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Memphis, TN - Selling a Subway (SOLD!)
« on: November 24, 2020, 09:05:55 AM »
Update 2.18.22 - Sold!

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 :)
« Last Edit: February 18, 2022, 11:28:52 AM by MustachioedPistachio »

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!

Dicey

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Re: Memphis, TN - Selling a Subway
« Reply #12 on: November 12, 2021, 07:30:44 AM »
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!!
Well? Is it done? Fingers still crossed, but getting sore.

MustachioedPistachio

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Re: Memphis, TN - Selling a Subway
« Reply #13 on: November 12, 2021, 09:40:19 AM »
I now have only four fingers since they've been crossed so long!

As oddly usual, your post timing is prescient. We just got the go ahead to pay the transfer fee, which means they buyers are approved. Now they just need to undergo training and set a date. Best case is mid-December...otherwise, it'll be 2022 (which, frankly, would be better tax-wise).

Thank you for checking in!

RWD

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Re: Memphis, TN - Selling a Subway
« Reply #14 on: November 13, 2021, 07:43:49 PM »
Hope it all goes smoothly!

MustachioedPistachio

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Re: Memphis, TN - Selling a Subway (PENDING)
« Reply #15 on: January 14, 2022, 01:08:05 PM »
February 9th is the magical date!

Dicey

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Re: Memphis, TN - Selling a Subway (PENDING)
« Reply #16 on: January 14, 2022, 01:27:01 PM »
Woo-hoo! I hope it's a number you're reasonably happy with.

MustachioedPistachio

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Re: Memphis, TN - Selling a Subway (PENDING)
« Reply #17 on: February 15, 2022, 02:45:07 PM »
February 9th was decidedly NOT the magical date - Feb 16th is the most magical date.

T-minus 8.25 hours...4.25 of which are during operating hours!

RWD

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Re: Memphis, TN - Selling a Subway (PENDING)
« Reply #18 on: February 15, 2022, 03:38:06 PM »
Exciting!

Dicey

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Re: Memphis, TN - Selling a Subway (PENDING)
« Reply #19 on: February 15, 2022, 07:02:46 PM »
Oh, the suspense!

MustachioedPistachio

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Re: Memphis, TN - Selling a Subway (SOLD!)
« Reply #20 on: February 18, 2022, 11:28:03 AM »
It's finally done. What a wild week.

Gooooooood riddance.

Dicey

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Re: Memphis, TN - Selling a Subway (SOLD!)
« Reply #21 on: February 18, 2022, 11:30:30 AM »
Wah-hoo! Does this make you FIRE now?

MustachioedPistachio

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Re: Memphis, TN - Selling a Subway (SOLD!)
« Reply #22 on: February 18, 2022, 11:35:39 AM »
Heh not quite! It is definitely a huge step towards crafting the right FIRE life. We just have the one shop now, and that's much more manageable. Technically, we could easily live off the income from that one store, but it still feels too much like a job for me to count it as FIRE :P I'd say it'll be up for divestment in a few years or so.

RWD

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Re: Memphis, TN - Selling a Subway (SOLD!)
« Reply #23 on: February 18, 2022, 12:26:00 PM »
Congrats!

fuzzy math

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Re: Memphis, TN - Selling a Subway (SOLD!)
« Reply #24 on: May 27, 2022, 08:51:51 PM »
How did you come across the stores to begin with? Connections? Trolling the internet?

MustachioedPistachio

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Re: Memphis, TN - Selling a Subway (SOLD!)
« Reply #25 on: May 27, 2022, 08:56:24 PM »
I was in the hotel business beforehand. A guy we sold a hotel to highly recommended the Subway business (HA!) as he had a couple before. He knew some folks in Memphis who were downsizing.

So, connections. But a simple internet search would have turned some up for sale.

Dicey

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Re: Memphis, TN - Selling a Subway (SOLD!)
« Reply #26 on: May 27, 2022, 08:59:18 PM »
I was in the hotel business beforehand. A guy we sold a hotel to highly recommended the Subway business (HA!) as he had a couple before. He knew some folks in Memphis who were downsizing.

So, connections. But a simple internet search would have turned some up for sale.
Both industries are a ton of (mostly thankless) work. Maybe your next gig will be something easier...

MustachioedPistachio

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Re: Memphis, TN - Selling a Subway (SOLD!)
« Reply #27 on: May 27, 2022, 09:05:47 PM »
I was in the hotel business beforehand. A guy we sold a hotel to highly recommended the Subway business (HA!) as he had a couple before. He knew some folks in Memphis who were downsizing.

So, connections. But a simple internet search would have turned some up for sale.
Both industries are a ton of (mostly thankless) work. Maybe your next gig will be something easier...

We actually have someone interested in our remaining store. If the price is right...I will be enjoying the FIRE gig for a while!

Dicey

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Re: Memphis, TN - Selling a Subway (SOLD!)
« Reply #28 on: May 27, 2022, 09:06:26 PM »
Hooray!

RWD

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Re: Memphis, TN - Selling a Subway (SOLD!)
« Reply #29 on: May 27, 2022, 09:11:37 PM »
Did you see the Last Week Tonight episode on Subway? After watching that I can definitely see why you would want out!

MustachioedPistachio

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Re: Memphis, TN - Selling a Subway (SOLD!)
« Reply #30 on: May 27, 2022, 09:29:58 PM »
I love John Oliver. And he nailed it. Fortunately we are not (yet) subject to the new Franchise Agreement, but that's really just the tip of the iceberg.

It's not as terrible as it's made out to be. Our sales have been record-breaking this year. Apparently a lot of folks still love to eat Subway. For me, it's being tied down to this city, and the always-looming possibility that the entire staff quits, we get sued, primary equipment blows up, Subway HQ gets even nuttier, etc. The partially passive income is nice but not worth the ongoing headache in the long run.

malacca

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Re: Memphis, TN - Selling a Subway (SOLD!)
« Reply #31 on: September 20, 2022, 11:44:39 PM »
I worked for Subway Corporate in the mid 90s. I took over failing franchises, turned them around and resold them.

It was the easiest business to run. Any idiot that could follow directions would be successful. The ones that didn't follow them failed.

I enjoyed it but I was always going to some small town in the middle of nowhere. I had been working in Asia. I ended up going back out of shear boredom.

I noticed Subway has not kept up with changing customer trends. It really hasn't improved in the last 30 years. They need new leadership.