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Port of Subs Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What Are the Initial Investment Requirements for a Port of Subs Franchise?
To open a Port of Subs franchise, you'll need to prepare for an initial investment ranging from $310,500 to $528,225. This includes a franchise fee of $25,000. Additionally, you should have liquid cash available between $75,000 and $100,000, and a net worth of $150,000 to $200,000 to meet the financial criteria set by the franchise. Understanding these costs is crucial for anyone considering this franchise opportunity.
What Are the Ongoing Fees for a Port of Subs Franchise?
Owning a Port of Subs franchise involves ongoing fees that contribute to the brand's marketing and operational support. Franchisees are required to pay a royalty fee of 6% on gross sales and a marketing fee of 1%. These fees are essential for maintaining brand presence and ensuring that franchisees have the necessary tools and resources to succeed in their local markets.
What Is the Average Revenue Potential for a Port of Subs Franchise?
Port of Subs franchises have a promising revenue potential, with an average annual revenue per unit of approximately $551,072. The median annual revenue is around $508,818, while the lowest reported revenue is $156,486, and the highest can reach up to $1,177,776. This wide range indicates that location, management, and local market conditions can significantly impact profitability.
How Quickly Can You Expect to Break Even with a Port of Subs Franchise?
Franchisees can expect to break even within about 12 months of opening their Port of Subs location. This quick payback period is appealing for many investors, as it allows them to recoup their initial investment relatively fast. The financial performance of existing franchises suggests that with the right management and location, achieving profitability can be feasible within the first year of operation.
Port of Subs Franchise Financial Requirements
Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Port of Subs Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2020 | 2021 | 2022 |
|---|---|---|---|
| Total Units | 126 | 129 | 132 |
| Net Change YoY | 3 | 3 | |
| Franchised Units | 108 | 113 | 117 |
| Net Change YoY | 5 | 4 | |
| Corporate Units | 18 | 16 | 15 |
| Net Change YoY | -2 | -1 |
Investment Overview
The Port of Subs franchise presents a range of investment opportunities, with a low initial investment starting at $310,500 and a high of $528,225. The franchise fee is set at $25,000, and franchisees can expect to pay a royalty fee of 6% on gross sales, along with a marketing fee of 1%. To qualify, potential franchisees should have cash reserves between $75,000 and $100,000 and a net worth of $150,000 to $200,000.
Revenue Potential
Franchisees of Port of Subs can anticipate an average annual revenue of $551,072 per unit, with a median revenue of $508,818. The revenue range varies significantly, with the lowest unit generating $156,486 and the highest reaching $1,177,776. This diverse revenue potential indicates a robust market for franchisees willing to invest in the brand.
Breakeven and Payback
Port of Subs offers a favorable breakeven timeline, typically achieving this milestone within 12 months of operation. Franchisees can also expect to see a return on their investment in approximately the same timeframe, making it an attractive option for entrepreneurs looking for quicker financial recovery.
Franchised and Corporate Units
As of 2022, Port of Subs has a total of 132 units, with 117 being franchised and 15 corporate-owned. The growth trend shows a steady increase in franchised units from 108 in 2020 to 117 in 2022, indicating a growing brand presence and potential for new franchisees to join a successful network.
Operational Expenses
While specific figures for cost of goods sold and operating expenses are not disclosed, franchisees should be prepared for various running costs. Typical annual expenses may include rent, utilities, and marketing, which can range from $5,000 to $7,500 for advertising and $1,500 to $2,500 for insurance. Understanding these costs is crucial for effective financial planning.
Company Support
Port of Subs provides comprehensive support to its franchisees, including training programs, marketing resources, and operational guidance. This support system is designed to help franchisees navigate the challenges of running their business and to ensure consistency and quality across all locations, ultimately enhancing the brand's reputation and success.
Frequently Asked Questions
The initial investment for a Port of Subs franchise ranges from $310,500 to $528,225, which includes the initial franchise fee of $25,000.