How Much Does A Subway Franchise Cost? + Other Common Faqs

Subway is known for making delicious and fresh sandwiches. It was founded by an Italian American in 1965 in Brooklyn, NY. It is known to be the largest fast-food franchise in the world. It has restaurants all over the world.

How much does a Subway franchise cost? The initial investment is between $250,000-$2 million.
How can you open a Subway franchise? You can get your franchise by buying a franchise and opening the store
How much does it cost to open a Subway franchise? It can cost anywhere from $80,000-$8 million.

How Much Does A Subway Franchise Cost In 2022?

It is a very expensive venture to start your own Subway franchise, and it could be a costly problem to get your franchise up and running. Furthermore, Subway franchise fees can range from$100,000 to $250,000 and they have information, guidance, and advice on their website to help franchisees get their start-up costs covered.

If you’re curious about investing in a Subway franchise, or if you’re just looking for more information about opening a Subway franchise, keep reading through this article!

How Much Does It Cost To Open a Subway Franchise?

The cost of opening a Subway franchise depends on where you are located and can include property and insurance costs.

This is where the business owner needs to make a business decision. They need to calculate whether or not the revenue it brings them is worth the $15,000 fee. It’s a calculation that the business owner needs to make. If they decide it’s not worth it to them, they will need to close it and find a different business to run.

According to Business Insider, the initial property costs are somewhere around $2,000-$24,000, and the annual equipment costs are anywhere from $3,000-$65,000.

Add to that an 8% franchise fee, which is paid before opening your first store. The average franchise fee in 2013 was $5,600.

The cost of setting up your business can vary between $2,000 and $7,000. This includes paying for a lawyer or accountant to write up your business plan, and getting business training.

Subway is one of the best known sandwich franchises and is available all across the United States.

What Fees Does Subway Charge Franchises?

While the original contract says franchise fees are 12.5% and are not subject to tax, Subway does take sales tax out on the receipts.

The company has stated that 8% of the franchise royalty is used for franchisor’s expenses and the remaining 4.5% is used for advertising to promote Subway further.

Is It Worth Opening A Subway Franchise?

Subway is a cheaper restaurant, and requires less initial investment than McDonald’s.

To start a fast-food restaurant, the franchise fee can range from $15,000 to $2 million.

With the franchise being a known brand, many franchisees will be able to find success without having a long lead-in time to market their business.

The Subway franchise could be an easy business to get into because near a nearby Subway is much more feasible.

How Much Profit Does a Subway Franchise Make?

From the average of $400,000 in sales, you are able to calculate the price per unit by dividing $400,000 by the total number of units sold, which means that this number is equal to $40,000.

How Can I Open a Subway Franchise?

The right to open a Subway restaurant requires that you have the money to invest in the franchise, and also that you can provide the right number of spaces.

First, go to Subway website and request a franchise kit. Requesting a franchise kit doesn’t mean you are going to open your own store.

It is a virtual reality application, which simulates the process of opening a Subway, and allows users to see what it would be like.

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If you open a Subway franchise you will need to secure adequate funds required to run the store.

Also, you need contracts from an attorney to ensure all your money is legally sound before you can open your Subway franchise. I have one client that said this to me.

When you submit your application, give Subway the address of your business and your name. They will inform you whether you are approved or not.

In this, you write a resume which you’re going to show to a recruiter and potential employer to get your foot in the door.

After you fill in all of the information that Subway asks you to, it asks you who is handling your franchisee duties.

I suggest you to consult a lawyer because you need to make sure you fully understand all terms and conditions of the Subway contract.

If your business makes more than $250,000 in total sales, you can pay an additional $150,000 franchise fee to become a Subway franchisee.

This takes about a year, and you’ll need to be willing to travel a lot.

In 2016, Subway hosted a franchise tradeshow where they showcased all of the new products they were including in the business, as well as new store designs.

You must apply for the Subway franchise permits and licenses, arrange the store layout and hire staff to run your Subway restaurant.

Even in Japan, they will know to get a different job.

After these steps, you should then be able to open up your Subway franchise.

According to Subway, it’s best to get the word out on your grand opening with some advertising and marketing.

Where Can I Open A Subway Franchise?

There are many possible places to get a Subway franchise, such as colleges, hotels, and airports.

To have an approved business site for an Subway franchise in Canada, you must have your potential business site approved beforehand. Your potential business site must contain all of the necessary infrastructure for an approved Subway franchise. This includes, but is not limited to, having a restaurant, approved lease for the business site, and signage for the business or site with permission from the Landlord.

Franchisees are then free to build their own business on this franchise model, such as opening a Subway restaurant in a high-traffic area.

The ideal Subway store should have as many seats as you can find, for the amount of customers that are coming in.

This makes it easier to get one approved. The application process is much easier, and, to a lesser extent, it’s possible to purchase an existing Subway franchise than it is to start one from scratch.

Does Subway Offer Information On Franchising?

Subway offers a number of resources about starting your own franchise.
Check out the Subway website.

If you do not pay this fee
You will not be entitled to become a Subway
Restaurant franchisee
You will instead be a Subway employee who sells Subway sandwiches,
like the one pictured above.

If you want to know more about the business, you can also find other posts here that I’ve written.

Conclusion

Subway franchises typically cost $100,000 to $250,000 to open, including a $15,000 franchise fee.

This is the percentage that franchisees have to pay to Subway for using the subways name.

The applications are available from Subway. Once you have completed the application process, you can contact the franchisor to get your franchise contract.

This business may not be suitable for you if you don’t have the financial and managerial experience needed to run a Subway franchise.