Franchising Since: 1974
Headquarters: Miami Springs, FL
Number of Units: 43,148
About Subway Franchise
Founded in 1974 by Fred DeLuca in Bridgeport, Connecticut, Subway has transformed from a small sandwich shop to the world’s largest submarine sandwich chain. With over 43,000 locations worldwide, Subway continues to offer fresh, customizable sandwiches, making it a beloved choice across diverse demographics globally.
Subway’s brand stands for convenience, value, and a focus on fresh ingredients, attracting a broad range of customers, from families to health-conscious individuals. With ongoing growth and a strong global presence, Subway is a leading franchise opportunity.
Franchise Investment Overview
To open a Subway franchise, you must be prepared for a substantial financial investment. Subway’s franchisees are required to have a minimum net worth of $80,000. The total initial investment can vary depending on the location chosen, with stand-alone locations generally requiring higher capital.
Estimated Initial Investment:
- Minimum: Approximately $116,600
- Maximum: Up to $263,150
- Franchise Fee: $15,000
Financial Assistance Programs
Subway offers several financing options to support new franchisees:
- Minority Loan Program: For qualified franchisees, Subway finances up to $10,000 of the initial franchise fee in the U.S.
- Construction & Lease Programs: Subway provides financial support for leased spaces and construction through approved affiliates and can offer loan guarantees for restaurant openings.
- Equipment Leasing: Subway offers an equipment leasing program to franchisees in the U.S. (excluding Puerto Rico but including Guam). These leases are structured as true leases, not financing leases.
Note that Subway reserves the right to modify or discontinue these financing programs at any time without prior notice.
Term of Agreement & Renewal
The standard franchise agreement lasts 20 years, with an automatic renewal for an additional 20-year period unless either party opts not to renew. Special provisions apply to certain programs such as the School Lunch Program, which has a shorter 5-year term. Subway retains the right to refuse renewal if the franchisee is not in full compliance with operational standards.
Breakdown of Initial Costs
Based on the Franchise Disclosure Document (FDD) of Subway for 2025, the following costs provide a clear idea of the financial commitments required to open a Subway franchise:
- Franchise Fee: $15,000 (government or military locations may qualify for a 100% waiver or 50% discount on this fee).
- Real Property Lease: $2,000 – $12,000 (varies depending on location and size of the restaurant).
- Leasehold Improvements: $59,500 – $134,500 (varies depending on renovation and interior customization).
- Equipment Lease Security Deposit: $4,500 – $7,500.
- Optional Security System: $2,000 – $6,000.
- Freight Charges: $3,500 – $5,800.
- Outside Signage: $2,000 – $8,000.
- Opening Inventory: $4,400 – $6,050.
- Insurance: $1,200 – $5,000 (includes comprehensive liability, workers’ compensation, vehicle insurance, and more).
- Supplies: $500 – $1,300.
- Training Costs: $2,500 – $4,500 (includes travel, lodging, and training at Subway’s headquarters).
- Legal & Accounting Fees: $1,000 – $3,500.
- Opening Advertising: $2,500 – $4,000 (required grand opening marketing).
- Miscellaneous Expenses: $4,000 – $8,000 (permits, licenses, impact fees, etc.).
- Additional Working Capital (3 months): $12,000 – $42,000.
Estimated Total Initial Investment: $116,600 – $263,150 (including all costs mentioned above).
Additional Considerations
- Leasehold Improvements: Depending on the property, you may need to make extensive renovations to the restaurant space.
- Impact Fees: Municipalities may charge between $5,000 and $25,000 to cover costs associated with the new restaurant’s impact on local services.
- Location Size: Subway restaurants typically range from 300 to 2,000 square feet, with most averaging around 1,200 square feet.
Key Takeaways
Opening a Subway franchise requires a significant upfront investment, with costs ranging from $116,600 to $263,150. The franchise fee is $15,000, though discounts are available for government and military site locations. Subway also provides financial assistance for qualifying franchisees, with options for equipment leasing and loan guarantees. With a proven model and a massive global presence, Subway offers a strong opportunity for aspiring franchisees.
For more details, it’s crucial to review the Franchise Disclosure Document (FDD) and consult with Subway’s franchise development team to tailor your investment to your chosen location and goals.
