THE SUBWAY FRANCHISE BUYING PROCESS FOR AN EXISTING STORE - USA
In general, if you are an existing Subway franchisee or pre-approved to buy a Subway Franchise in the county or city where the Subway is located, the whole process will be faster and smoother.
A new prospective franchisee buying an existing store will have to sign my Non Disclosure Agreement (NDA) to access my confidential seller information and then pass a Subway proctored Math and English proficiency test (Wonderlic) before the Subway approval process can be started.
The Buying and Approval process in general:
1.Complete and sign NDA, fax back to me indicating Cash available and Net Worth, and residential address
2. Receive confidential data, including a Combo Report if you know what it is
3.Visit location, look around, act like a customer, do not talk to anyone or arouse suspicion
4.Call Fayaz Karim to discuss matters and offer terms
5.Submit offer to purchase as drafted by me
6.Request and list all materials you need for review (lease, financials, sales tax, Combo reports)
7. Meet owner, complete due diligence in time given (7-10 days should be enough)
8. Remove contingencies, sign off completion of due diligence matters
9. Submit signed offer and acceptance to the Development Agent
10. Submit Business Plan, and go to interview
11. Get Subway approvals, sign Transfer papers, schedule training
12. Gather funds, open Escrow and set date of takeover
If you decide this store is not for you and you want to see others, consider requesting my expertise as a Subway Specialist to perform a search for you in an area you choose and meeting your criteria. This targeted, focused, fee based service yields better results than the hit and miss approach used by most buyers and wastes less time for everyone; or take a close look at another franchise opportunity
Other tips: -get educated about the Subway Opportunity before making an offer(on this website and through me)
-get pre-approved by Subway to speed up your transaction
-approach this as an owner-operator(40 hours) or a partnership, not an investor
-generally speaking you can only buy one store at a time, especially first time buyers, unless approved for more
-it helps if you reside in the county where the store is located, or very close to it
-you will need about $150K cash or 50% down and an authentic letter for the balance
-buying an existing store is a great way, and the only way sometimes, to get into the Subway system
-use existing Subway friendly financing sources when possible( I work with many)
-must be US citizen or permanent legal resident
You can absolutely, positively count on me to do my best to help you achieve your goal of owning a Subway store based on my 27 years experience as a Subway Franchisee, DA and Franchise Broker. Information is free, but Knowledge and Wisdom are PRICELESS.
I also offer Subway valuations, second opinions, and represent buyers and sellers in some circumstances. For instance buyer and seller cannot agree on terms, partnership split, no proper books and records, divorce, etc.
FAYAZ KARIM, BSc, MBA, CPA(Can), Subway specialist and Associate member of NAASF,
California RE Agent, Member of NACVA, 2102 Business Center Drive, Irvine, CA 92612
Tel: 949-253-4610 FAX firstname.lastname@example.org