Subway Franchise Information
The cost of a Subway franchise ranges from $222,050 to $506,900. It includes equipment, inventory, leasehold improvements, and other variable costs. The initial franchise fee is $15,000. Subway also charges ongoing royalty fees of 8% of gross sales and advertising fees of 4.5% of gross sales.
Subway Overview
- Subway began in 1965 as Pete’s Super Submarines.
- Rebranded as Subway in 1972 and started franchising in 1974.
- Over 35,000 restaurants globally.
- Provides opportunities for both experienced and novice business owners.
- Offers franchise training and different formats to choose from.
- Ensure adequate capitalization before opening a franchise.
Franchise Costs and Benefits
- Startup costs range from $116,000-$263,000.
- Profit margin per location is around 7.5% of annual sales, averaging $31,000.
- Costs and profits vary by factors such as location.
- Benefits include insurance and retirement plans.
How Much Does a Subway Owner Make?
- Profit margin per location averages approximately $31,000.
- Costs and profits vary depending on location.
Conclusion
Subway offers affordable franchise options with potential benefits for owners. Costs and profits can vary, and suitable capitalization is necessary before venturing into franchising.