How much does it cost to open a Subway franchise?

The total initial investment for a Subway franchise ranges from $263,000 to $630,000. This includes the franchise fee of $15,000, buildout costs, equipment, and initial working capital.

What are the ongoing fees for a Subway franchise?

Subway franchisees pay a 8.0% royalty fee and a 4.5% advertising/marketing fund contribution. These are typically calculated as a percentage of gross revenue.

How much money can you make with a Subway franchise?

Subway does not disclose financial performance data (Item 19) in their FDD. Revenue and profitability figures are not publicly available from the franchisor.

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QSR 19,502 Units

Subway Franchise Cost Breakdown

Complete investment analysis based on official FDD data

Total Investment

$263,000 – $630,000

Franchise Fee

$15,000

Royalty Rate

8.0%

Initial Investment Range

Low: $263,000 High: $630,000

The total initial investment to open a Subway franchise ranges from $263,000 to $630,000, as disclosed in their Franchise Disclosure Document. This includes the one-time franchise fee of $15,000.

Midpoint estimate: $446,500

Franchise Fee

$15,000

One-time initial fee

The Subway franchise fee is a one-time upfront payment made to the franchisor when you sign the franchise agreement. This fee grants you the right to operate under the Subway brand and is included in the total initial investment range above.

Ongoing Fees

Royalty Fee

8.0%

of gross revenue

Ad/Marketing Fund

4.5%

of gross revenue

Total Ongoing Fee Burden: 12.5% of gross revenue

Combined royalty and advertising fund contributions before any other fees.

Other Ongoing Fees

Fee Type	Rate	Type	Notes
Royalty Fee	8.0	PCT	Manually corrected — 8% royalty per FDD
Advertising Fee	4.5	PCT	Manually corrected — 4.5% ad fund per FDD

What You Get

Unit Growth & Failure Rate

Avg. Annual Closure Rate

0.0%

Low risk — below industry average

Net Unit Growth

0 units

From 2021 to 2023

Unit Activity History

Year	Start	Opened	Closed	Transfers	End
2021	10	—	—	—	10
2022	10	—	—	—	10
2023	10	—	—	—	10

Is a Subway Franchise Worth It?

Based on the FDD data, here is a data-driven snapshot of the Subway franchise opportunity:

Overall Score

61/100

Moderate opportunity

Est. Payback Period

N/A

Insufficient data

Risk Level

Low

0.0% annual closure rate

Subway shows a moderate score across our evaluation criteria. Careful due diligence is recommended. For a complete analysis including risk factors, deal-breaker flags, and detailed financial modeling, see the full report.