Subway Franchise | Cost, Sale, Opportunity.

Subway Franchise|Cost, Sale, Opportunity.

How to start Subway franchise? If you are an entrepreneur that needs to own and work your very own business then Subway franchise is the best option, while as yet appreciating the help of the biggest food restaurant network on the planet, at that point Subway is an open door opportunity you have to explore.

An enormous number of Subway Franchise proprietors have reinvested in the brand and have become multi-unit proprietors.

#1. Subway Franchise Opportunities

What are subway franchise opportunities?; Subway has one of the lowest start-up costs in the business and gives an opportunity to serve clients flavorful, nutritious and creative food alternatives (no oil – no fryolators – simply bread prepared crisp day by day and all the more new vegetables to heap on your sandwich!)

With the Subway Franchise model, Subway Franchise have Business Development Agents everywhere throughout the world to help and bolster Franchise Owners so they have a superior opportunity to get effective in their business.

Subway Franchise has various benefits:

  • Low start-up investment
  • Training program before you open your café just as online courses for kept learning, for you and your group.
  • Business Development Agent framework to give on-going nearby help to your business
  • The backing of a national promoting program just as help for nearby market items and activities
  • Serving nutritious specially made alternatives

#2. Subway Franchise Cost

Subway franchise cost is around $100,550 and $342,400. And Subway also provides franchise depends on location: Traditional and Non-Traditional type.

1.   Investment subway franchise cost:

Estimated Investment Cost
Name of FeeLowHigh
Initial Franchise Fee$15,000$15,000
Real Property$2,000$12,000
Leasehold Improvements$40,900$200,000
Equipment Lease Security Deposit$7,500$15,500
Optional Security System$2,450$3,550
Freight Charges (varies by location)$3,000$14,000
Outside Signage$1,600$8,000
Opening Inventory$4,400$6,050
Training Expenses (including travel & lodging)$2,500$4,500
Legal and Accounting$1,000$3,500
Opening Advertising$2,500$4,000
Expenses For business license, utility deposits & small equipment$4,000$8,000
Additional Funds – three months$12,000$42,000
ESTIMATED TOTAL*$100,550$342,400

The estimated initial investment cost range covers from a Non-Traditional Location size up to a Traditional Location size.

Other Fee/Cost

Type of FeeAmount
Royalty8% of total gross sales.
Advertising4.5% of total gross sales.
Additional FundsEstablished by franchisees.
Local AdvertisingEstablished by franchisees.
Grand Opening Advertising$2,000
AuditOverdue amount.
Subway Franchise Fees for Unpaid Balances (when payment is more than one week late)An interest charge of 12% (or maximum allowed by law where the restaurant is located) per annum on the amount owed by a franchisee.
Fees for Unpaid Balances (when payment is more than one week late)Late fee of 10% (or the maximum rate allowed by law where the restaurant is located) per annum of the amount owed by franchisee may be charged.
Fees for Unpaid Balances (when the franchisee defaults on payments because of a bank change without notice)$50
Fees for Unpaid Balances (bounced check or pre-authorized draft)$20
Fees for Unpaid Balances (When Subway or its affiliate incurs the expense)Costs of collection, including lawyers’ fees.
Transfer$7,500 plus $3,000 for any satellite ($3,750, plus $1,500 for any satellite if the franchisee transfers to or transfers by adding their spouse or child to the franchise agreement).
Location Rent/License Fee$1,000 – $6,000 per month, estimated.
Equipment Lease$2.70 per month per $100.
Equipment Lease (upon transfer)A transfer fee of 5% of the buyout price.
Equipment Lease (upon early termination)Early termination fee of remainder of monthly payments, limited to 18 months’ payments.
Equipment Purchase and Freight ChargesEquipment Cost and buffer to cover freight charges, taxes, and other costs.
Insurance$1,200 – $5,000 per year.
IndemnificationCosts, including lawyers’ fees, incurred. And all liability, damages, 
Non-compete ViolationFor its gross sales $15,000  with each competing store plus 8%.
Confidentiality ViolationThe franchisor’s damages.
Trademark Violation$250 per day.
Limited Time Offering Auto ShipmentVaries as the franchisor implement new Limited Time Offerings.
Dispute ResolutionHalf of the arbitration fee, except franchisee, will pay the whole fee plus costs, including lawyers’ fees, management preparation time, and travel expenses if he/she withholds money from the franchisor or an affiliate.
If the franchisee breaches the provisions of the Franchise Agreement regarding mandatory arbitration, or restrictions on damages or against whom he/she can arbitrate, or the proper forum for an action, the franchisee will pay Subway’s expenses and the expenses of anyone named improperly, including lawyers’ fees; the franchisee will be liable for abuse of process.
Probationary Case Management Fee – $500; Probationary Extension Fee – $250; Interim Order Case Management Fee – $250; Litigation Expense Fee to permit sale of restaurant -5% of gross consideration received for sale of restaurant.
Subway Franchise Co-Brand Continuing FeeFor co-brand concept 0% – 8% of total gross sales
Fees Charged by Co-Brand FranchisorFees and rates set by third-party co-brand franchisor.
Optional Store Listing Service$100 for each 90 day period.
Software License and Maintenance Fees – SubwayPOSIf the restaurant is located in the United States, monthly software maintenance fees are currently covered by the strategic fund. The franchisor may change this funding structure in the future, and charge franchisees a monthly software maintenance fee.
$35 monthly software maintenance fee if the franchisee’s restaurant is located in a territory of the United States.
Software Maintenance and Annual License Fees – Progress DBMS (Co-branded locations only)$47 annual fee, payable to a third party, subject to future changes.
Software Maintenance and Annual License Fees – Fees for Continued Use of Sub Shop/2000 $400 annual maintenance fee, subject to future changes.
$15 approximate menu management fee, subject to future changes. 
Required Payment OptionsPayment Processing Fees:
-Acquirer Fee is $.0135 per transaction, subject to future changes.
-Network and Interchange Fees vary depending on card brand and type of transaction. Typical Network and Interchange fees for VISA, MasterCard and Discover range from $.22 per transaction to 2.4% of the total transaction amount plus $.10; subject to future changes
-Referral Fee is $.008
-Card Not Present Transaction Fee is $.115 per transaction. This fee may increase in the future.
Subway Card Fees– Initial fee of approximately $200.
-when Subway Card is redeemed  Redemption Fee equal to 2.5% of each transaction amount that applies.
– Additional Subway Card supply costs $0.10 per card.
– approximately $40 annually Subway Card envelope, POP & Marketing Materials.
Subway MyWay Rewards ProgramUp to 1.9%, subject to any annual adjustments, of the gross sales, for each transaction made by a Subway MyWay Rewards program member at the restaurant.
Other Technology and Digital InitiativesVaries as the franchisor implements various new technology and digital initiatives. Usually paid to a third party.
Taxes and Other FeesVaries by state.
Training FeeNone; unless the franchisor grants franchisees permission to bring their store manager to training or they sign a rider which requires them to send their Manager or Director of Food Services to Training Program and they cannot prove that the Store Manager or Director is their employee and not a prospective franchisee, in which case franchisees must pay $7,500.
Subway Franchise Listens ProgramNone, except each customer receipt redeemed for two cookies or a 21-ounce drink, will cost the franchisee approximately $.33 to $.35 per redemption.
Optional Loss Prevention Program FeesNone; however, if the franchisee fails to complete the program, Subway will charge an administrative fee of $1,000.
Customer Complaint Resolution Fee$2 – $20 per incident.

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#3. Subway Franchise For Sale

Become a Subway Franchise For Sale owner and sale for the franchise you should need to follow 10 steps:

  1. Request a Franchise Brochure
  2. Submit Franchise Application
  3. Meet a Local Business Development Agent
  4. Review of Disclosure Document
  5. Conduct Local Research
  6. Secure Financing
  7. Sign Franchise Agreement
  8. Attend Training
  9. Secure a Location & Build Your Restaurant
  10. Celebrate!

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