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Subway Franchise Investing

As a career changer looking to invest and own your own franchise business, you may have considered purchasing a Subway franchise. Not only is this one of the most well-known and established fast-food franchises in the world – but it is also one of the most cost-effective options for new business owners. However, investing in a Subway franchise is a big decision that involves a lot of research and questions. Here are answers to some of the most commonly asked questions about investing in a Subway franchise from the International Franchise Professional Group (IFPG).

What Is the History of Franchise Subway?

Subway was founded in 1965 by Fred DeLuca as a small sandwich shop. Since then, Subway has grown to become the world’s largest fast-food chain with over 42,500 owned and franchised locations across 102 countries. In 2016, Subway became the largest restaurant chain globally, surpassing McDonalds. After becoming a global brand, Subway began to focus on local community outreach, the importance of healthy eating, and sustainability. This commitment to customer service, quality product offerings, and environmental sustainability has kept Subway competitive and current with modern standards.

How Much Does It Cost To Invest In A Subway Franchise?

When investing in a Subway franchise, the total estimated cost ranges from $116,600 to $263,150. This includes a franchise fee of $15,000 to $25,000. The rest of the cost goes toward the initial inventory, equipment, and other expenses related to opening the store. Additionally, franchisees may also need to expect ongoing royalty fees of 8% to 8.5%. However, because Subway is an established company, these royalties are often set lower than other fast-food franchises in the industry.

What Are Some Benefits of Owning a Subway Franchise?

One of the greatest advantages of investing in a Subway franchise is that there is no ongoing or upfront advertising cost. All corporate-level marketing materials and initiatives are funded by Subway headquarters, so franchisees have more funds to focus on developing their individual store locations. Furthermore, as one of the most famous and recognizable food chains in the world, Subway franchise owners are supported by an established brand that customers recognize, trust, and love. Lastly, franchisees have access to training and support provided by Subway headquarters, including marketing ideas, developing managerial skills, and ways to maximize profits.


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