THE SHORT ANSWER
Value a sandwich shop using the outlet’s supported continuing earnings and actual sale rights. Reconcile food, packaging, labor, premises, platform and applicable brand costs; review the proposed agreement term and required investment separately. No universal Subway or sandwich-shop multiple is substantiated here. Brand-wide sales claims, a generic restaurant range and the asking price do not independently establish this unit’s price or buyer return.
Define the outlet and rights being valued
SBA describes income, market and asset valuation approaches.
(SBA: closing or selling a business)Seek actual completed comparable evidence matched for outlet format, earnings definition, premises, included assets and franchise or independent rights. General restaurant figures are separate from a Subway-specific appraisal. Identify missing matched evidence instead of labeling a generic multiple an industry average.
Separate completed counter, direct-order, delivery-provider and catering sales from future deposits, gift balances and unfulfilled services. Reconcile actual annual/seasonal trading and provider settlements without duplicate order/payout amounts. Define offered locations, genuine shared overhead and the permanent owner role before comparing an earnings measure.
Test achieved outlet costs without assumed brand rates
Review actual invoices, crew records, agreements, refunds, platform settlements and accounts. Every stated cost below is invented for arithmetic only; none is a Subway fee or market margin.
| Hypothetical completed-trading group | Assumed amount | Boundary |
|---|---|---|
| Collected trading after refunds | 20,000 dollars | No taxes, tips or future deposits |
| Distinct food and packaging | 7,000 dollars | Not already deducted |
| Distinct crew costs | 6,000 dollars | Separate stated amount |
| Assumed brand and marketing costs | 1,000 dollars | Invented amount, no brand fee schedule |
| Distinct provider fees | 500 dollars | Separate stated amount |
| After specified costs | 20,000 − 7,000 − 6,000 − 1,000 − 500 = 5,500 dollars | Before premises, remaining management and other costs |
The 5,500-dollar remainder follows 14,500 dollars of specified costs. Premises, remaining management, utilities, repairs, insurance, administration, other duties, financing and taxes are excluded. This is not SDE, annual profit, a market margin, price or return on investment.
Review continuing brand obligations and proposed investment
The FTC guide directs attention to costs, controls and Item 17 transfer/renewal questions.
(FTC: consumer guide to buying a franchise)With counsel and the responsible franchisor, obtain actual current agreements and proposed buyer terms. Review remaining term, renewal, approvals, any first-refusal right, training, transfer costs, supplier requirements and required improvements. This guide supplies no Subway-specific schedule or promise that existing terms remain unchanged.
For independent outlets, review actual IP, domains, providers, suppliers and premises rights through the consent register. Model evidenced required improvements and timing separately from recurring unit costs. A nominal fee or required remodel is not automatically an equal reduction in agreed price or a guaranteed return-enhancing investment.
Include permanent shifts and closing obligations
Bridge actual accounts to the defined earnings measure using the earnings reconciliation. Map food buying, prep, service, opening/closing, shifts and management through the coverage worksheet. Include actual permanent replacement compensation and continuing premises, utilities, platform, brand, supplier, maintenance and administration costs. Do not remove work or spending that the buyer must continue.
Assess usable kitchen assets, title, leases, service history and necessary investment with qualified people. Allocate stock, catering orders, prepaid/gift balances, refunds, provider settlements and vendor bills through the delivery guide. Compare supported earnings and actual rights, investment and funded duties; a calculator scenario does not approve a franchise resale or determine a formal appraisal.
Owner questions
What sandwich-shop multiple is verified here?
No universal brand-specific range is substantiated; obtain actual matched completed evidence and a defined outlet earnings/rights scope.
Are the example’s brand costs Subway fees?
No; all amounts are hypothetical arithmetic assumptions and require replacement with actual outlet agreements and records.
Does the 5,500-dollar balance establish ROI?
It excludes many operating costs, investment, financing and taxes and supplies no price or return forecast.
Sources and review scope
Source review completed . The sources below support the identified concepts or rules; they do not validate hypothetical amounts or a valuation of your business.
- SBA: closing or selling a business
Valuation approaches, sale agreements, assets and ownership transfer.
- FTC: consumer guide to buying a franchise
September 2020 consumer guide, checked October 10, 2026: costs, controls, contractual obligations and FDD Item 17 transfer/renewal questions. General review guidance; actual resale approvals, agreements, current federal/state obligations and proposed buyer terms require transaction-specific professional review. This guide does not approve a resale or establish its price.
Confirm tax, legal, accounting and lending applications with the relevant professionals. Historical market observations describe the stated period and reported sample.
This is educational material. Industry figures and program rules can change; check the original sources and your advisors before applying them to a transaction. Calculator scenarios are not appraisals, lending decisions, or offers.
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