How Much is a Subway Franchise?

If you’re considering starting a business and have an interest in the food industry, owning a Subway franchise might be an option worth exploring. But before you take the plunge, it’s important to understand the costs and fees associated with becoming a Subway franchise owner. Here’s a breakdown of what you can expect:

Initial Franchise Fee

The initial franchise fee for a Subway franchise is $15,000. This fee gives you the right to use the Subway brand and system for a term of 20 years. It also includes training and support during the initial start-up phase of your business.

Real Estate and Construction Costs

In addition to the initial franchise fee, you’ll need to consider the costs associated with securing a suitable location for your Subway franchise. This will typically include the cost of leasing or purchasing the property, as well as the cost of any necessary renovations or construction. These costs can vary significantly depending on the location and size of your franchise.

Equipment and Supplies

To operate your Subway franchise, you’ll need to purchase a range of equipment and supplies. This might include items such as ovens, refrigerators, and point-of-sale systems. The cost of these items can vary, but you can expect to pay several thousand dollars for equipment alone.

Ongoing Fees

In addition to the upfront costs of starting a Subway franchise, you’ll also need to consider ongoing fees. These might include:

  • Royalties: Subway charges a royalty fee of 8% of your gross sales. This fee is used to support ongoing research and development efforts and to provide ongoing support and training to franchisees.
  • Advertising: You’ll also be required to contribute to a national advertising fund, which is used to promote the Subway brand. The current contribution rate is 4.5% of your gross sales.
  • Other fees: There may be other fees associated with owning a Subway franchise, such as local marketing fees, insurance fees, and credit card processing fees.

It’s worth noting that these fees and costs are estimates and can vary depending on a range of factors. To get a more accurate idea of the costs associated with starting a Subway franchise, it’s a good idea to speak with a franchise development agent.


In conclusion, owning a Subway franchise can be a rewarding and lucrative business opportunity, but it’s important to carefully consider the costs and fees associated with becoming a franchise owner. By understanding the financial requirements up front, you can make an informed decision about whether this business venture is right for you.