Subway Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$15,000
Investment required
$190,000 - $522,000
Royalty fee
8.00%

Subway: Revolutionizing the Fast-Food Landscape with Fresh and Affordable Options

Subway, an international fast-food giant headquartered in Milford, Connecticut, boasts an extensive menu that includes submarine sandwiches, wraps, salads, sides, and beverages.

Founded in 1965 by a 17-year-old Fred DeLuca with financial assistance from Peter Buck, the company initially launched as Pete's Super Submarines in Bridgeport, Connecticut. Subway began its franchising journey in 1974, and has since grown to be one of the most recognized names in the fast-food industry.

Subway is now recognized as the largest single-brand restaurant chain globally. For entrepreneurs and investors, owning a Subway franchise represents an opportunity to invest in a well-known sandwich franchise celebrated for its fresh, convenient, and affordable options.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Type of Expenditure Amount
Initial Franchise Fee $15,000
Real Property $2,000 to $12,000
Leasehold Improvements (For a Non-Traditional Location) $40,900 to $77,000
Equipment, Furniture and Décor $97,200 to $194,400
Optional Security System (not including monitoring) $2,450 to $3,550
Freight Charges (varies by location) (For a Non-Traditional Location) $3,000 to $4,000
Outside Signage (For a Non-Traditional Location) $1,600 to $8,000
Opening Inventory $4,400 to $6,050
Insurance $1,000 to $6,000
Supplies $500 to $1,300
Training Expenses (including travel & lodging) $2,500 to $4,500
Legal and Accounting $1,000 to $3,500
Grand Opening Advertising $2,000 to $4,000
Miscellaneous Expenses (business licenses, utility deposits, & small equipment) $4,000 to $8,000
Additional Funds - three months $12,000 to $42,000
TOTAL $229,050 to $522,300
TOTAL (For a Non-Traditional Location) $189,550 to $389,300

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Number of units

2023
Franchised units

22,190

21,147

20,576

Company-owned units

0

0

0

Total units

22,190

21,147

20,576

Franchise Disclosure Document

Training 

Subway offers an extensive training program to ensure franchisees are fully prepared to run a Subway® restaurant effectively. This training is mandatory and must be completed before the franchisee's restaurant opens for business.

To maximize its impact, it is advised that the training be scheduled as close to the restaurant's opening as possible.

The program includes both online modules and in-person sessions. In-person training is delivered by FWH Trainers at regional training centers, supplemented by practical "on-the-job" training at an operational Subway® restaurant.

The classroom instruction spans approximately 15 hours, while the hands-on training involves around 60 hours at local restaurants. Additionally, there are two to three hours of homework each evening.

Territory Protection

Franchisees are not granted an exclusive territory. They may encounter competition from multiple sources, including other franchisees, franchisor-owned outlets, and other distribution channels or competitive brands managed by the franchisor.

The franchise rights provided are restricted to the specific franchised business location and any additional sites designated under an Additional Business Amendment to the Franchise Agreement.

If the franchisor permits operating a food truck as an extension of an existing Subway restaurant, the food truck can only operate at locations registered and approved by Subway.

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