How Much Does It Cost To Buy A Subway Store
Joining the SUBWAY team gives you the great opportunity to own your own business, but not just any business, a proven business with a low investment, simple operations, flexible floor plans, national and local support, national and regional advertising, a two week training program, ongoing learning for our owners and their staff, store development assistance, design support; lease negotiations, construction guidance and much, much more.
how much does it cost to buy a subway store
The subway franchise cost vary depending on whether you want a traditional or nontraditional and where the restaurant will be. If you are a veteran franchisee, opening a satellite location, or an existing franchisee, the start-up amount tends to be lower.
Fortunately, demand is usually not too hard to assess. Simply take a look at the number of existing subway stores in your area and compare it to the population. If there are already a lot of stores per capita, chances are that demand is pretty saturated and you might want to look elsewhere.
Despite recent news about stores closing and the company slashing costs the demand to become subway franchisees is quite high. This franchising business is such a huge name with relatively low start-up capital that many subway potential franchisees want to explore that option.
Demand for Subway franchises remains high despite recent news about stores closing and the company slashing costs. This franchising business is such a huge name with relatively low start-up capital that many potential franchisees want to explore that option.
The Subway franchise fee is a one-time payment of $15,000. In order to open a Subway, you may also need to meet minimum net worth and liquid assets requirements. In addition to the initial franchise fee, Subway franchisees must pay ongoing Subway store franchise royalties of 8% of total gross sales. Subway also charges a marketing fee of 4.5% of gross sales. These fees help to cover the cost of advertising and promotions, as well as the ongoing support that Subway provides to its franchisees.
With the sandwich brand struggling to stay competitive in recent years, starting a Subway franchise is a somewhat risky venture. The average location costs nearly $235,000 to start, but the expected revenue is much lower than most other franchises. Likewise, hundreds of locations have closed recently, showing that demand may be falling.
With more than 21,000 Subway franchises in operation across the U.S., opening up a branch of the well-loved sandwich business for yourself must appeal to the entrepreneurial spirit. You get to be your own boss while benefiting from built-in brand recognition, a set menu, and on-going support straight from corporate. Sounds like a win-win. But just how much does it cost to open up a Subway franchise?
In short, there is no magic number for costs associated with opening a Subway. Though one cost is pretty much set in stone: The $15,000 franchise fee, an initial licensing fee, paid to Subway (via Investopedia). Due at the time of signing the franchise agreement, according to Franchise Direct, this fee grants the new business owner access to Subway's trademark, operating system, and training.
In 2006, the first kosher Subway restaurant in the United States opened in a suburb of Cleveland, Ohio in the Mandel Jewish Community Center of Cleveland. Former Subway spokesman Jared Fogle attended the opening. A press release stated, "With slight modifications, such as no pork-based products, and the use of soy-based cheese product, the menu is virtually identical to that of any other Subway restaurant." Other openings soon followed, briefly making Subway one of the largest U.S. kosher restaurant chains. At their peak, twelve kosher Subway locations were open in the U.S., including Kansas City and 5 in New York. As of 2011, only five remained: in Cleveland, Miami, Los Angeles, and two stores in Maryland. Franchisees who failed noted a lack of support from the parent location in advertising, higher costs of kosher food and supervision, the inability to remain open on Saturdays, and that customers who do not keep kosher prefer the original menu and prices.
On January 31, 2011, Subway lawyer Valerie Pochron wrote to Casey's General Stores, a chain of Iowa-based convenience stores, demanding that the small chain cease using the term "footlong" in advertisements for its 12-inch sandwiches. Subway threatened to sue. Consequently, in February 2011, Casey's General Stores Inc. filed a petition in a U.S. District Court in Des Moines, seeking a legal declaration that the word "footlong" does not violate Subway's rights. Casey's further sought a declaration that the word "footlong" is a generic description of a sandwich measuring one foot. Before serving its complaint on Subway, Casey's voluntarily dismissed its action, ending the litigation.
According to Subway's website, U.S. stores' ingredients may differ from those in Canadian stores. Both countries include soy protein in chicken strips, but only the U.S. version states that it is present in quantities of 2% or less. The Canadian version includes soy as an ingredient in its chicken patty, but the United States version does not.
Following the 2022 Russian invasion of Ukraine, Subway was criticized for not divesting or scaling back its operations in Russia, unlike most of its competitors. Subway issued a statement saying, its corporate office does not own any of the 446 Subway stores in Russia, and issued a statement saying, "In addition to working with our franchisees across Europe to provide meals to refugees, we will redirect any profits from operations in Russia to humanitarian efforts supporting Ukrainians who have been affected by the war. Our restaurants in Russia are all independently owned and operated by local franchisees and managed by an independent master franchisee."
Physical Subway Cards can be purchased at participating Subway restaurant locations throughout the U.S. and Canada, online at subway.com or at authorized resellers, retail and online stores. eGift Cards can be purchased online at subway.com or from authorized reseller online stores. You can also buy Subway Cards for bulk or corporate needs. See Subway Gift Card FAQs for more information.
3. Why do you want to know how much you can make as the owner of a Subway franchise? (Like it matters.) Kidding. One way to find out is to see how many Subway franchisees own more than one Subway store. (Lots.) Another way is to ask. Carefully.
Request a Subway franchise kit through the website. The kit does not obligate you to open a store. It simply provides information on the steps to become a franchisee. Information in the kit covers such topics as skills needed to run a successful sub shop, costs to become a franchisee and available training.
But, Subway's six-figure price tag is actually much less expensive than other restaurant franchise options. McDonald's, our top-ranked restaurant, will run you at least $1 million. In that respect, then, a Subway franchise costs about seven times less than the cheapest McDonald's.
There's an important distinction to be made here. You can buy 15,478 Italian BMTs by themselves, because an Italian BMT -- at least at my local subway -- costs $9.50. If you want the combo, with a drink and a side, then that's going to cost an extra $3.10, which would bring down your sandwich count to 11,670.
If you're a New Yorker like me -- or just someone who uses public transportation -- your first association with the word "subway" might be with the overcrowded, underground train tunnels running beneath major metropolitan areas. So, if you wondered, like I did, about the ratio from Subway access to subway access, then here it is: a New York city unlimited monthly pass costs $121. The lowest price of a Subway restaurant costs $147,050. That means you can buy 1,215 subway passes for one Subway.
Expanding the number of stores at all costs drove up overall gross sales in the short term, but it proved to be detrimental to independent operators. Coupled with the rising costs of rent, labor, and food, the increased local competition made the $5 footlong untenable for many franchisees.
Actually, Subway has come a long competitive way from 1965 to reach this number one place in the food restaurant sector. Not only in India, Subway is an established brand all across the world, so by becoming a Franchisee for Subway, the brand itself drives sales for your business rather than you laboring the sales team for your food business. Sales happen so automatically as its subway itself, speaks for its unique food, so there is no extra effort for basic marketing but you can increase the sales level to high volumes with your special marketing strategies.The unique items sold in subway food restaurant attract people of different age groups for the quality already accomplished by Subway as a food brand. The quality factor of the Subway is the main point of sales and this is the reason by which it sells its products without much marketing or sales effort from the franchisee side. Make use of all these strengths and just check out the subway franchise application and become one of the successful Franchisee of Subway in India to make Subway as your selling point. Register your Business at Best Price in IndiaInvestment required to become a Subway FranchiseeThe information of Subway Franchise cost and profit is for the youngster who wants to start the business journey with Subway franchise. Actually, there is no direct communication from the Subway management relating the initial subway franchise cost and investment required. However, as per the observations and studies were done at the food market and franchise level it is observed that about 25 to 30 Lakhs of investment required to be start your Subway business. About 4.5 Lakhs is the Franchisee Fee and about 3.5% to 8% of royalty and advertisement fees of Subway are charged in India.This food company recommends their Franchise to have at least 170 Sq. Ft area for the food court and for non-food court space about 350 Sq Ft is required. And about 8 personnel is required as manpower to run a Subway Franchisee. Generally, the operating cost of a Subway Franchise will be 1 Lakhs per month and the break-even can be concluded at the minimum rate of 40% per year. 041b061a72