Subway

The Subway franchise all started in 1965, when 17-year-old Fred DeLuca and family friend Peter Buck opened Pete's Super Submarines in Bridgeport, Connecticut. With Buck's $1,000 loan,  DeLuca's hope was that the tiny sandwich shop would earn him enough money to put him through college. After struggling through the first several years of the business's existence, DeLuca and Buck changed the company's name to Subway and began franchising nearly a decade after its founding. Today, Subway has franchises throughout the United States and in 98 countries, with locations in traditional and nontraditional sites alike. The company is best known for its $5 foot-long sub campaign, which kicked off after the 2008 financial crisis. 

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Subway Franchise Cost and Requirements for 2022

Background

Subway is the world's largest submarine sandwich chain. The company has more than 40,000 locations globally. Its becoming ta leading choice for people seeking quick, nutritious meal options that the whole family can enjoy. From the beginning, Fred DeLuca has had a clear vision for the future of the Subway brand. As the company continues continue to grow, franchisees are guided by his passion for delighting customers by serving fresh, delicious, sandwiches made-to-order right in front of all customers.

The franchisor is Doctor Associates LLC., who offers qualified franchisors the right to establish and operate, from a single location or a retail establishment preparing and selling foot-long, six-inch, flat bread, and specialty sandwiches, salads and other food items. Franchisees do not receive any exclusive territories. The estimated financial range for setting up and operating a Subway restaurant for the first three months ranges between $100,050 and $342,400. This financial range depends on the location type. The business has two types of franchises: traditional and non-traditional.

Traditional locations are full-service restaurants where the only purpose is the operation of a Subway restaurant with a full menu. On the other hand. non-traditional locations are also full-service, but are housed with another business. Examples of non-traditional locations include: convenience stores, gasoline stations, highway rest stops, department stores, hospitals, parks, universities, schools, sports arenas, convention centers, airports, theme parks, national parks, bus and railroad terminals, military bases, business complexes, assisted living/nursing homes, and other similar locations. Look at Subway's item 19 in its FDD to get full financial information.

Company Details

Founded: 1965 
Franchising Since 1974 
# of employees at HQ 975
# of Units 41,600 

Support and Training Offered By Subway

On-The-Job Training 20 hours
Classroom Training 80 hours
Additional Training Training available in Australia, China, Germany, India, Montreal, Canada & Miami
Subway also offers in-house and third-party finance options 

 

2022 Franchise Requirements Needed to Own a Subway Franchise.

What does a Subway Franchise Cost?

Subway franchise fees for 2022:

Initial Franchise Fee $15,000
Initial Investment $140,050 - $342,400
Net Worth Requirement $80,000 - $310,000
Cash Requirement $30,000 - $90,000
Veteran Incentives: A veteran's franchise fee waived if opening on a military or government funded location. Additionally, they'll receive 50% off the franchise fee if opening a non government location with government financing
Royalty Fee 8%
Ad Royalty Fee 4.5%
Term of Agreement 20 years

Is Subway a Semi Absentee Franchise with a Passive Ownership Opportunity?

Yes. Subway is a semi absentee franchise and allows passive ownership. A semi-absentee franchise is a business you could start and run while still maintaining a job or other obligation.

Is Subway a Home Based franchise?

No. Subway is not a home based franchise opportunity.

What Do Subway Franchise Owners Make?

Click here to find out how much Subway franchisees make. Subway offers an Item 19 in their Franchise Disclosure Document which provides financial information about select franchisees in their franchise system.

Does Subway Offer a Veteran Discount?

Yes. Subway franchise does offer a veteran discount.

Is Subway Looking for Franchisees in Canada?

Yes. Subway franchise is looking for Canada franchisees.

Is Subway Looking for International franchisees?

Yes. Subway franchise is looking for International franchisees.

Additional Information

Additional Categories

Food & Restaurants

Number of Units Open

100+ UNITS

Cash Required

More than $250,000

Passive Franchise

Yes

Home Based Franchise

No

Item 19 Franchise

Yes

Veteran Discount

No

B2B

No

Franchise Opportunities in Canada

Yes

International Franchise Opportunities

Yes

Subway Franchises for Sale

Click Here to inquire about existing Subway franchises for sale. We may have Subway franchise resales. A franchise resale is an already established franchise owned by a franchisee and the franchisee is looking to sell their franchise.

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