Multi-Unit Franchise Experts

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FAQs for Aspiring Subway Franchise Owners

Are you tired of the corporate career and feel unfulfilled? Transitioning into business ownership might be the answer. And owning a Subway franchise is an attractive option for many. Subway is one of the most well-known and popular brands worldwide and they offer a recognizable product that can’t be ignored.

But if you’re considering owning a Subway franchise, there are some key questions you’ll need to answer first. Here, we’ll answer some of the frequently asked questions for aspiring Subway franchise owners and guide you in the process of owning a Subway franchise.

What does it cost to become a Subway franchise owner?

Subway requires an initial franchise fee to start your franchise. This fee can range, depending on the type of franchise you want to own and the location of your business. The exact cost varies depending on the business model and certain items that your franchise may require. The Subway website offers great advice regarding the cost to start a franchise, as well as detailed instructions about their financial requirement for franchise owners.

In addition to the initial franchise fee, you’ll also need to pay annual franchise fees to Subway. Again, the exact cost may vary but typically falls in the range of 4%-8% of the gross revenue. Additionally, you’ll need to cover equipment and startup costs, which can vary depending on the size and scope of your Subway business.

What other qualifications are needed to own a Subway franchise?

To own a Subway franchise, you need to have good business and financial skill along with some restaurant management experience. Subway requires franchisors to have cash liquidity of at least $80,000 and have a total net worth of at least $300,000. Subway also requires the franchisor to have at least one full-time manager on staff who can devote all their time to the management and operation of the business.

What kind of support will Subway provide to its franchise owners?

Subway provides extensive franchisee training and support for both new and existing franchise owners and operators. Subway’s Franchise World Headquarters (FWH) provides the franchisees with an extensive, structured training program that helps them operate their sub shop successfully. Attending the program is mandatory in order to own a Subway franchise, and it includes both classroom-style learning and hands-on training. Subway also provides ongoing support to help franchise owners keep their business running efficiently. This includes marketing support, human resource and legal advice, operational support, as well as, product and services updates.

Are there any additional fees I should know about?

In addition to the franchising cost and the annual fee, Subway may also charge additional fees depending on the business model you choose. This can include royalty fees, ad funds, and other structural fees. While these fees are not mandatory, Subway does require that the franchisee pay any licensing fee for any pre-existing or new trademarks or Intellectual Property that Subway requires for the franchisee to use for their business.

What other resources are available?

In addition to Subway’s website and yearly Franchise Disclosure Document (FDD), the Franchise Business Review is also a great resource for Subway franchise owners. It provides a comprehensive overview of the Subway franchise system, along with industry reviews and insights. The International Franchise Professionals Group (IFPG) is another helpful resource providing additional support for aspiring Subway franchise owners. They offer a wealth of knowledge from the experienced professional network with over 1,300 franchisor, franchise consultants and vendor members.


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