Today i was told Subway are opening a shop in
Hawick Scottish Borders.
Apparently they are aiming on opening 2010 shops by 2010.
About Hawick - the town has a population of approx 14000, it is unfortunately
quite high in unemployment and many businesses have or are about to close due to the economic climate.
I operate a busy sandwich/baguette outlet in the town which i took over in august 07 plus it was struggling at the time but we have slowly turned it around.
My shop is a franchise.
What i was wondering is, no one will pay subway prices so why would they take approx 100k for the franchise from someone then a further 12.5 monthly management fee.
Example,
I sell 6 inch baguettes, any fillings with any amount of toppings - £1.10
I sell 12 inch baguettes, any fillings with any amounts of toppings - £1.60.
These baguettes are stuffed full with no hidden costs. All freshly baked as we go and all fillings are freshly made each morning and midday.
Hawick people have little money to spare but enough to purchase from us as what we give is near classed as a meal rather than a snack due to the amount we fill them. Likewise with out fresh morning rolls, baked tattie, paninis, sandwiches etc etc...
So why would subway tell a potential franchisee to part with 100k to buy into their business and 12.5. % man fee per month and take out a city orientated business deep in the Scottish Borders.
I thought i had nerves of steel but wow, whoever is going into hawick , mate i salute you.