Subway Franchise Cost Price – Fee and Profit Information

Subway Franchise Opportunities

Review: How much is a subway franchise?
Subway Franchise is the largest global fast food chain which offers some exciting prospects for those seeking to partner as a franchisee. This has seem to be the destination of choice for all who desire healthy meals, which are affordable and qualitative. Interestingly its motto is “Eat Fresh”. The following are historical shots of the Subway fast food chain of restaurant franchises:

Subway primarily offers to the public submarine sandwiches and  salads. Fred Deluca was the first to establish the first Subway restaurant in Bridgeport , Conneticut in 1965. He joined forces with  Dr Peter Buck, who offered a 1,000 USD loan, thus forming a partnership.

Subway is the largest server of quick meals, with over 44,672 restaurants operating under its trademark. In the United States alone, it has over 27,000 convenient stores.  Doctor’s Associates Inc is the parent body overseeing the starting of any subway franchise structure.

Subway group of restaurants spent over 156,000,000 million USD on advertising, in 2012. The group had opened over 30,000 largest stores by the end of 2013. 95 percent of the trays used in serving customers are made from recycled waste materials.

Subway’s  menu consist of the following, although variations exist from region to region: Chicken Pizziola, Chicken Teriyaki, Chicken Tikka,Chipotle Chicken, Italian B.M.T,Roasted Chicken, Meatball Marinara, Steak & Cheese, Italian Spices, Subway Club, Subway Melt,Tuna, Veggie Delite, and Veggie Patty.


How to own  a subway franchise
The Subway Franchise structure places the responsibility for the daily working operations of our franchised restaurants in capable and determined hands, and working closely with franchisees to grow together. The Franchisee has an opportunity to leverage on the founding ideals of the owners in delivering fresh wholesome meals, which has transformed the group to the largest fast food conglomerate.

To become a franchisee with Subway is a  thorough and extensive exercise. The outlay is as follows:


It begins with a Subway Franchise Application

Every eligible candidate must fill and complete a request form to apply for the franchise licence. The applicant will then receive a Subway Franchise Document with substantial information. The next task to owning an existing subway franchise that is put on sale will be passing a rudimentary skills test.  Then you will be ready to explore various Subway franchise business opportunities assisted by the local development office. The development office and Doctor’ Associates Inc will then evaluate applicant’s performance and indicate to the candidate acceptance to the next stage.

Cost of SUBWAY Franchise

How much does it cost to franchise a subway offered for sale? Subway start-up franchise fee is $15,000. Upon achieving qualification to acquire additional locations, the royalty fee is $7,500. This is the basic cost of opening a subway franchise.

Terms and Conditions

The $15,000 franchise dues grants access to get a franchise binding for twenty years.  This franchise startup cost can be renewed for an additional twenty years at no further costs for the contract transfer.

Subway Ownership Start-up Costs and Capital Requirements

What are the basic subway franchise requirements?
Total funds needed to open this franchise can range from $114,800 to $258,300 for traditional sites and $84,300 to $200,100 for non-traditional locations.  This cost of buying a subway franchise covers the franchise fee, construction and equipment costs as well as seed capital.  These computations depict the initial net investment once eligibility is obtained for the company’s equipment leasing program.

If the equipment leasing program is not selected or it is not available, the applicant can substitute the costs for Equipment Lease Security Deposit with $49,500 to $72,000. It is recommended that franchisees have half of the amount in cash and secure financing for the other half, as it preferable that the franchisee does not grapple with a large debt burden.

Subway Franchise Financing Options

Subway Franchise can furnish potential franchisees with a list of facility lenders, who are knowledgeable about the franchise structure. Applicants are also encouraged to explore additional sources for funding including personal savings and investment accounts, mortgage loans/lines and financial assistance from family and friends.

Securing Equipment For Subway Franchising Business

Applicants may purchase standard SUBWAY equipment and tools with cash or on hire purchase.  The SUBWAY® franchise system also affords the franchisee the opportunity to obtain necessary equipment via a package that requires a security deposit of 10% of the costs of equipment with a minimum down payment of $1,000.

The lease payments run from periods spanning and up to 60 months.  At the end of the lease term franchisees may buy the equipment for 10% of the original cost. The security deposit will be included in offsetting the purchase.

Training Availability

The duration of franchise training and coaching runs for two week. Half of the time is spent in class, the other half at a designated store.  In addition, all franchisees who have scaled the last hurdle, must satisfactorily undergo further training SUBWAY Global Headquarters before the commencement of their franchise.

Subway Franchise Expected Return on Investment

SUBWAY is not at liberty to disclose an earnings (average profit per year) claim tied to running and operating a franchise store, because these results vary from region to region. However, potential franchisees are free to contact existing SUBWAY franchise owners and getting relevant information from them.

Subway Franchise Marketing and Advertisement Procedures

Beyond the one time Subway franchise fee of $15,000, franchisees are mandated to pay advertisement royalties to the general advert pool of  Doctor’s Associates Inc, calculated at 4.5% of weekly gross sales.  Franchisees will also be required to pay a royalty fee of 8% of weekly sales for the SUBWAY trademark use.

Securing Additional Subway Franchise Locations

Franchisees are encouraged to source for  additional locations, as part of a multi-store development drive. The franchisee  may also submit a desired  and the business support consultant will  investigate your location and provide  an  analysis of its viability for  further development.

Subway Food Sources

All franchisees are required to order food and other feeder materials from an approved vendor, in their locality.

Operational and Field Support

Successful applicants will be assigned to a field and business consultant, that will provide assistant to the franchisee adhere to the very high standards associated with running a store on Subway franchise.

Moreover, the franchisee will have available a mix of support systems that include franchise support centre, group online platforms and other resources which includes the Subway Partners website and University of SUBWAY courses.

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