Subway

Summary Financials

The Subway business plan template created by Vetted Biz has a summary financials sheet where you can see a summary projection of every key financial when evaluating owning a Subway unit. This includes the P&L statement, Labor Efficiency table, balance sheet, cash flow statement, breakeven analysis, payback period analysis, returns on invested capital (ROIC), and valuation.

The Vetted Biz franchise business plan is the best place to see all of these potential scenarios before you make any investment decision.

Profit & Loss

Before investing in a franchise you will want to know the potential profits an owner of Subway can make or earn. The Subway business plan has a profit and loss (P&L) statement that is uniquely structured with the eye of a potential business owner in mind.

The P&L is indispensable in a franchise unit business plan as it provides a detailed overview of the potential gross sales, expenses, and profitability over a specific 1-year periods. The model for Subway helps franchisees and potential investors understand how the business may perform, highlighting the most important revenue and cost categories.

The P&L statement is crucial for budgeting and forecasting, enabling potential franchise business owners to make strategic decisions to enhance profitability. Finally, it's essential for demonstrating the business's financial viability to lenders and investors, supporting efforts to secure funding.

Balance Sheet

The balance sheet in the Subway business model is crucial for any potential franchisee as it provides a clear snapshot of the company's financial health. The balance sheet details assets, liabilities, and equity, offering insights into the business's net worth at a specific point in time.

For potential investors and lenders like yourself, a forecasted balance sheet demonstrates potential fiscal responsibility and stability, essential for securing financing and sustaining growth. Additionally, it aids potential Subway franchise owners in making informed decisions about future investments and expense management.

Cash Flow

The cash flow statement for Subway is vital to forecast in the franchise business plan as it tracks the potential cash entering and leaving the business, offering a transparent view of liquidity and operational efficiency.

This financial statement helps identify how well the business can manage its cash to fund operations, pay debts, and invest in growth.

It is essential for planning and ensuring that you have enough cash on hand to meet your obligations, particularly in the early stages of development. Additionally, a clear cash flow statement is crucial for attracting investors, as it demonstrates the business's ability to generate cash and sustain its operations.

Returns on Invested Capital (ROIC)

The returns on invested capital is one of, if not the, most important calculations that you should do before doing any investment into a franchise or small business.

In the franchise business plan for Subway, you can calculate the potential returns, or ROIC, based on the amount of capital invested into the business against the total net income generated from the business.

We take a unique approach in this model to account for potential sweat equity (cases where you may underpay yourself to help bootstrap the business) and required core capital so you have as accurate a picture as possible of your potential returns on a franchise investment.

Valuation

Would you like to know the potential valuation of an investment in a Subway unit? There are two key primary inputs in the model: the EBITDA multiple and the adjusted net operating income.

Our model helps you calculate the true adjusted net operating income so you can have a good idea as to what the potential valuation of a Subway investment.

Our model is unique because we also include the “replacement return required” so you have a good idea of what sort of return you would target for if and when you decide to eventually exit or sell your franchise.