Although I get calls DAILY for reports give or take a few Subway and Quiznos concession purchases, I never suggest that variety of grant. In reality I try and bring my clients away from this beingness sterilisation finding. There are considerably betters distance of investing money, time, and slog.

A sandwich mercantile establishment (or ANY grant) wishes to be researched completely BEFORE you buy one, and my job is to edward teach you how. Let’s do the numbers:

If a snack food store earns $40,000 for the month:

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7% royal family = $2,800

1% provincial promotion = $400

3% national promotion = $1,200

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20% toil = $8,000

29% matter = $11,600

3% tabloid = $1,200

.3% explanation / payroll = $ 300

10% annuity in advance / CAM = $4,000

2.75% protection / misc. = 1,100

5% repay SBA loan = 2,000

4.5% misc. bills (utilities, etc) = $1,800

.5% indefinite quantity = $200

1% rations = $400

1% promo substance = $400

1% comp silage = $400

2.9% appreciation paper fee = $1,160

.4% coupons = $160

.5 silage throw away = $200

IF a stock earns $480,000 annually, the franchise controller can trust to way of walking away beside a lucre of 9.4%. That equals around $45,120. If you in performance in an vastness beside cheaper rent, within will be a complex net profit side-line.

These info are definite. These data are why I NEVER recommend a snack food store as an land. I ask my clients if they poverty to brand $45,000 a twelvemonth after finance all that money, and doing all that tough grind. Some secretaries trademark more than that. You invest all that money, do all that work, and you bring in smaller quantity than a secretary? There are MANY other than franchises that expenditure MUCH smaller number and spawn a MUCH large R.I.O. (Return on your Investment)

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