The Subway® brand has some of the lowest start-up costs in the industry for a franchise of its size and stature. Of course, the total amount of investment will depend on the location, rent, size and extent required.
The main list of the set-up fees and costs you'll need to consider, usually includes: an initial franchise fee, training fee, advance rent on premises, shop-fitting costs, vehicle lease, initial stock, equipment purchases, working capital and promotional costs.
However even franchise owners must pay business rates. Business rates are taxes paid on non-residential properties, like shops, offices, factories, and pubs. If you occupy a building, or part of one, that you use for non-domestic purposes, then you'll probably be required to pay business rates.
Unfortunately, because of business rates, many fast-food places do struggle financially. This is because business rates are often forgotten while making a business plan.
Since the business rates went up, after the change from 1st April (connected to revaluation of property in Britain), the BRC said retailers would pay an additional £2bn in business rates over the next three years, compared with the past three years.
According to the article found in The Guardian, “Neil Whitham, who runs a fish and chips shop in St Ives in Cornwall, said the business rates revaluation was “totally unfair”. He will now pay 62%, or £4,000, more a year, even though his rent has only gone up by 5% a year. “
No matter if you buy McDonald’s or Subway franchise, if you run a hotel or fish and chips shop, you always must remember to pay business rates.
If you have questions or if you struggle to pay, contact Business Rate Advisors Ltd on 01225 667 747 or visit their website: https://www.businessratehelp.co.uk/