Subway Franchise Opportunities
Subway franchise is an American fast food chain operating in 100 countries. Subway restaurant franchise offers a rich menu which includes sandwiches, pizzas, salads and breakfast ideas. The brand provides equally good opportunities for those who have already run their business as well as for absolute novices. Owning a Subway franchise is easy due to a set of trainings available for a franchisee. How to open a Subway franchise? First, check Subway investment information and study the franchise requirements. If you find them suitable for you, proceed with matching Subway franchise cost and profit. Then analyze what franchise fees include and choose the best Subway format among offered for sale.
How to open a Subway franchise?
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Ensure you have adequate capitalization.
In order to open a Subway restaurant franchise, you must have a net worth of more than $80,000. -
Appreciate the investment required for a restaurant franchise.
You will need to consider real estate costs, the cost of equipment and signs, the costs of licenses and permits, the cost of uniforms, the cost of insurance, etc. -
Evaluate your prior experience and strengths.
You should thoroughly evaluate your prior business experience before applying to become a Subway franchise owner. -
Assess market availability.
You will want to look at the market availability for Subway franchises and see if there are available markets in your location of interest before proceeding with the franchising application. -
Submit your application.
Your application will be reviewed by the Subway franchise team. You will be emailed a confirmation receipt upon reception of your online application, where we will additionally provide the contact details of the franchise owner. -
Receive approval & opening your Subway franchise.
You will receive franchise approval once your financial and background checks are completed. Approval will only be given to candidates who meet all the requirements of franchise owners.
How much does Subway franchise cost?
SUBWAY has the franchise fee of up to $15,000, with total initial investment range of $100,050 to $342,400.
Initial investments: $100,050 - $342,400
Net Worth Requirement: $80,000 - $310,000
Liquid Cash Requirement: $30,000 - $90,000
The data in table below, compiled from the Subway Franchise Disclosure Document (FDD) 2020, represent the estimated financial range for the initial setting up and first 3 months of operation for a new Subway restaurant.
Estimated Initial Investment
| Type Of Expenditure | Low | Middle | High |
|---|---|---|---|
| Initial Franchise Fee | $15,000 | $15,000 | $15,000 |
| Real Property | $2,000 | $5,000 | $12,000 |
|
Leasehold Improvements For a Non-Traditional Location |
$75,000 $40,900 |
$150,000 $44,750 |
$200,000 $77,000 |
| Equipment Lease Security Deposit | $7,500 | $11,500 | $15,500 |
| Optional Security System | $2,450 | $2,850 | $3,550 |
|
Freight Charges (varies by location) For a Non-Traditional Location |
$8,000 $3,000 |
$10,400 $3,800 |
$14,000 $4,000 |
|
Outside Signage For a Non-Traditional Location |
$2,000 $1,600 |
$4,000 $4,000 |
$8,000 $8,000 |
| Opening Inventory | $4,400 | $5,225 | $6,050 |
| Insurance | $1,200 | $1,500 | $5,000 |
| Supplies | $500 | $900 | $1,300 |
| Training Expenses (including travel & lodging) | $2,500 | $3,500 | $4,500 |
| Legal and Accounting | $1,000 | $2,000 | $3,500 |
| Grand Opening Advertising | $2,000 | $3,250 | $4,000 |
| Miscellaneous Expenses (business license, utility deposits & small equipment) | $4,000 | $6,000 | $8,000 |
| Additional Funds – 3 Months | $12,000 | $26,000 | $42,000 |
|
TOTAL* For a Non-Traditional Location |
$139,550 $100,050 |
$247,125 $135,275 |
$342,400 $209,400 |
*The Subway initial investment range covers from a non-traditional location size up to a traditional location size.
Ongoing Fees
Initial Franchise Fee: $15,000
Ongoing Royalty Fee: 8%
Ad Royalty Fee: $4.5%
Are you interested in starting Subway Franchise in the USA, India, Indonesia, Canada, Pakistan, Malaysia or another country?
We provide estimated franchise costs for some countries:
- In the United States, the total investment to start the Subway Restaurant is around $100,050 - $342,400.
- In Indian currency, the investment comes around Rs 104.5 lakhs to Rs 2.2 crores.
- In Indonesian currency, the investment comes around Rp 2,082 million to Rp 4,542 million.
- In Canadian currency, the investment comes around CAD 195,576 to CAD 426,531.
- In Pakistani currency, the investment comes around PKR 23,035,382 to PKR 50,273,655.
- In Malaysian currency, the investment comes around RM 617,610 to RM 1,346,940.
How much does a Subway franchise make?
Subway is one of the largest fast-food chains in the world. Opening a franchise under the Subway brand is a great business opportunity for ambitious entrepreneurs. The whole Subway franchise net generates around $11 billion dollars in annual profit. On average, each franchise unit makes $422,000 a year. The estimated Subway franchise profit is at about $31,000 as franchise owners earn a median of 7.5% of their annual sales. The amount of profit you make from the Subway franchise depends on the location of an enterprise, your management skills, and commitment to success. You will also make more if you acquire multiple franchise units.
When you buy a Subway franchise, you may sell it in the future. A resale unit is a highly sought-after business, as it already has an existing flow of money and a client base. The value of these units can be really high and require potential buyers to make quite a big investment. You can make a lot of money by selling a Subway franchise at a high price.
Support Options
On-The-Job Training: 33 hours
Classroom Training: 62 hours
Additional Training: Training available in Australia, China, Germany, India, Montreal, Canada & Miami
Number of Employees Required to Run: 8 - 12
Absentee Ownership Allowed
Franchise Info: www.subway.com/en-US/OwnAFranchise/WhySubway
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Starting investments from:$100,050
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Company type:Restaurant
- Company foundation year1965
- Year of launching the franchise1974
- Franchise enterprises (2017):44,608
- Corporate Address:325 Sub Wy. Milford, CT 06461