Subway was sold for 9.8 billion, how can that franchise be worth that much?

[ChefPapiChulo]

Wild that they actually got 9.8 billion lmao.

Updates

+1 y

I find it funny how this person tried to one up me by saying it got sold on the corporate level. Like no shit lmao. What I said is not wrong. Subway IS a franchise LOL.

[rachel776]

you take their earnings and multiply it by 6 or 7 or 8 and that's the sale price like any other business

[KrakenAttackin]

There is likely a mandate for buying all supplies and paying recurring franchise fees which creates stable cash flow. Usually a valuation is determined by some multiple of revenue plus physical assets.

[NaultD]

I'm pretty sure subway has more locations then any other fast food franchise.

[Yabbut]

That is mind boggling. Maybe because they're everywhere?

[ChefPapiChulo]

have you had subway? theyre known for their soggy buns. the only good thing about them is that their food is barely edible and cheap. thats a lot of money for having that reputation.

[Yabbut]

I agree. That's why it's mind boggling.

[provokeesmokee]

That's the entire corporate identity, not a franchise.

[ChefPapiChulo]

your point is?

[Anonymous]

That makes no sense.