How can I buy a Subway® franchise? You need to contact headquarters and fill out their online franchising information form. A Franchise Development Agent will follow up with you and explain the process.
Full Answer
Can you make money with a Subway franchise?
Well, becoming a Subway owner can bring the exact opposite. If you are planning to own a single-unit of a Subway franchise, unless you spend your time running the business, you will make very little money out of it. So you will need to be involved, and that means actively managing a business operation that is open 7 days a week, for long hours…not very appealing…
How much does it cost to buy a Subway franchise?
To buy a franchise with Subway®, you’ll need to have at least $40,000 in liquid capital and a net worth of $80,000 – $310,000. Franchisees can expect to make a total investment of $150,050 – $328,700. Subway® charges a franchise fee of $15,000. They also offer financing via 3rd party.
How much cash to open a Subway franchise?
- Initial Franchise Fee – $15,000
- Real Property – $2,000 to $12,000
- Leasehold Improvements – $29,900 to $77,000
- Equipment Lease Security Deposit – $4,500 to $7,500
- Optional Security System – $2,450 to $3,550
- Freight Charges – $3,000 to $4,000
- Outside Signage – $1,600 to $8,000
- Opening Inventory – $4,400 to $6,050
- Insurance – $1,200 to $5,000
What is the average income of a Subway franchise?
There was a survey of several hundred owners performed by a Subway owners association that showed the average store profit is in the $28,000 per year range. Any loans taken to purchase the store (ave. store cost to build is in the $200K range) needs to be subtracted from this number.
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How much is it to buy a Subway franchise?
The initial franchise fee ranges from $10,000 - $15,000* (US dollars) depending on your country.
Is owning a Subway franchise profitable?
In 2021, Subway saw a 21.3% increase in revenue, growing from $634 million in 2020 to $769 million in 2021. Based on the average sales calculated above, at an average of a 15% profit margin, it will take approximately 7.3 years to recoup your investment, which is longer than most franchise opportunities.
How much does a Subway owner make a year?
The average salary for an Owner is $121,715 per year in United States, which is 34% higher than the average Subway salary of $90,272 per year for this job.
How do I invest in a Subway franchise?
To buy a franchise with Subway®, you'll need to have at least $40,000 in liquid capital and a minimum net worth of $80,000. Franchisees can expect to make a total investment of $150,050 - $328,700.
How do franchise owners get paid?
How do franchise owners get paid? Franchise owners can pay themselves a salary or depending on their business entity, they may be able to take a draw from their accumulated equity.
Which franchise makes the most money?
What is the most profitable franchise to own? According to the Franchise 500 list of 2021, Taco Bell is the most profitable franchise to own. The food chain has been franchising for nearly 6 decades and is still seeking franchises worldwide. As of 2021, they have 7,567 open units.
Is owning a franchise a full time job?
Buying a franchise doesn't have to mean making a full-time commitment. Believe it or not, there are many franchises that can be run on a part-time basis, especially when you first start out.
What is the most profitable franchise to own in 2022?
Top 14 Most Profitable FranchisesMcDonald's. Units in operation: 39,360. ... Dunkin Donuts. Units in operation: 12,800. ... Taco Bell. Units in operation 12,800. ... Subway Franchise. Offers Financing: Yes. ... Anytime Fitness Franchise. Units in operation: 4,904. ... Sonic. Royalty: 2.5% - 5.0% ... Planet Fitness. Royalty 7.0% ... Orangetheory Fitness.More items...
Do franchise owners have to work?
Owning a franchise unit can be demanding, requiring work of 60 to 70 hours a week, but owners have the satisfaction of knowing that their business's success is a result of their own hard work. Some people look for franchise opportunities that are less demanding and may only require a part-time commitment.
Can you buy an existing Subway?
Second hand Subways run $100,000-$250,000 based on location, build out costs and profitability. check bizbuysell.com to review listings. There are local business development guys [corporate can refer you to one] that might have existing ones for sale as well.
Is buying into a franchise a good investment?
If you're a fledgling entrepreneur or a seasoned business person wanting to diversify your holdings, you've probably wondered, “Are franchises a good investment?” The simple answer is yes, especially if a great opportunity presents itself. There is an obvious appeal to starting a business via buying a franchise.
How much money do you need to invest in a franchise?
Franchise startup costs can be as low as $10,000 or as high as $5 million, with the majority falling somewhere between $100,000 and $300,000. The price all depends on the industry, location and type of franchise.
How much do franchise owners make a year?
According to a survey done by Franchise Business Review involving 28,500 franchise owners, the average pre-tax annual income of franchise owners is about 80,000 dollars.
How much does Subway make per sandwich?
According to Smart Money, Subway franchisees make a “Profit of roughly $1.20 a sandwich.” Product discounting is one of the hottest topics in franchising. Here's why: Franchisors make money off the gross sales of their franchisees, regardless of franchisee profitability.
How much does it cost to open a subway?
Initial costs for a store site include its real estate and construction expenses. For a Subway business, it is estimated the total cost for the initial restaurant site ranges from $150,050 to $342,400, much lower than other competing fast food franchises.
Why do entrepreneurs want to own a franchise?
With franchise ownership, franchisee entrepreneurs gain the benefit of licensing an established business's procedures and processes from the franchisor. These licensing benefits give the business owner numerous advantages, including an association with an established business and the benefits of an already established branding strategy.
How much does it cost to franchise a McDonald's?
An initial startup licensing fee of $15,000 is required to begin the business, compared with a $40,000 to $90,000 licensing fee for Dunkin' ( DNKN) or the $45,000 fee that Mcdonald's ( MCD) charges. Annually, royalty fees are also required. Subway royalty fees are 8% of annual gross sales, which are higher than the 5% and 4% that Dunkin' and Mcdonald's charge, respectively. Additionally, the franchisee is required to pay an ad fund fee that is 4.5% of total gross sales.
What are the benefits of franchise?
One of the greatest benefits of a franchised business is the ability to gain use of the company’s operational procedures, trademark rights, and branding. With these licensed business advantages, franchisees can primarily rely on the established marketing of the franchised business for its sales.
Is subway the largest fast food company?
In fact, Subway is the largest fast food company in the world in terms of store count. It is one of the most popular businesses to franchise and is also known to have among the lowest franchising costs. For 2020, it is ranked #107 on Entrepreneur Magazine's " Franchise 500 Ranking .".
Is subway a licensor?
These licensing benefits give the business owner numerous advantages, including an association with an established business and the benefits of an already established branding strategy. In the fast food industry, Subway is an extremely well-established licensor of its sandwich stores. In fact, Subway is the largest fast food company in ...
Is subway a privately owned company?
Subway has a long history in the fast food business. It is a privately owned company that opened its first restaurant in Connecticut by founder Fred DeLuca in 1965 under the name "Peter's Super Submarines.". Its deep roots have allowed the company to build a strong strategic brand around its sandwiches and ...
What is the problem with franchising?
Massive market saturation (The problem in franchising is the brands that are most visible get the most people applying for a franchise. But it is that exact visibility that hurts you financially as a franchisee with so many locations vying for business.
Do subway franchises have disclosure documents?
Now as Franchise brokers and consultants we are in a unique position in that we have access to every Franchise Disclosure Document out there. We also speak regularly with existing Subway franchise owners selling their locations and we hear the reasons why they want to sell. One of our partners here at franchise.city was also a multi units Subway owner for a number of years before selling his stores.
What Does a Subway® Franchise Cost?
Franchisees can expect to make a total investment of $150,050 - $328,700. Subway® charges a franchise fee of $15,000. They also offer financing via 3rd party. *
Is subway still growing?
We are still growing with new and existing opportunities available now. Subway has more restaurants in the world than any other Quick Service Restaurant chain and more than 50 years of experience working with Franchise Owners in their quest to provide freshly made, quality sandwiches and salads at a great value in a clean comfortable environment. If you enjoy working with people, leading your own team, learning new skills and are ready for an exciting new challenge, then Subway is an opportunity you must explore.
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.
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
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
Franchises Similar to Subway
The International Franchise Professionals Group (IFPG) is an internationally recognized membership-based franchise organization. IFPG Franchise Consultants guide aspiring business owners through the process of identifying and investing in franchise businesses. The IFPG represents more than 550 franchises.
How much does a subway franchise cost?
As noted in the chart above, the standard Subway franchise fee is $15,000. However, exceptions do apply.
How much does it cost to open a subway restaurant?
A reduced franchise fee of $5,000 is also available to Subway franchisees who desire to open a satellite restaurant—this fee will be reduced to $1,000 if the satellite will be in operation for one year or less. The franchise fee would be waived entirely for satellite locations located in the same facility of the base Subway restaurant.
What is a franchise fee?
The franchise fee is basically a cover charge for entry into a franchise system, and for taking advantage of the expertise the franchisor has acquired. It typically covers the right to use the franchisor’s system (including trademarks and operating system), and services the franchisor provides to franchisees like help finding a location, training materials, etc. For Subway, and most franchises, the franchise fee is due in full when the franchise agreement is signed.
What are the variables that affect the final cost of a restaurant?
Variations in final cost depend on area real estate costs, the size of restaurant being opened, renovations that need to be made, and additional factors such as the amount of traffic the restaurant gets in its opening months.
Overview
- In the small business industry, many entrepreneurs favor franchise ownership over starting uniq…
In the fast food industry, Subway is an extremely well-established licensor of its sandwich stores. In fact, Subway is among the largest fast food company in the world in terms of store count. 1 2 It is no surprise, then, that it is also one of the most popular businesses to franchise. - Subway is one of the most ubiquitous and successful global fast-food chains.
Those looking to franchise a Subway store can expect to shell out around $200,000 in startup costs plus a $15,000 initial licensing fee.
Subway: An Overview
- Subway has a long history in the fast food business. It is a privately owned company that opened its first restaurant in Connecticut by founder Fred DeLuca in 1965 under the name "Peter's Super Submarines." 3 Its deep roots have allowed the company to build a strong strategic brand around its sandwiches and the overall fast food experience. Between 2013 and 2017, the company was …
The Cost of Franchising a Subway Restaurant
- One of the leading selling points for a Subway sandwich shop is the low cost of opening a franc…
Other costs are involved in franchising the business. An initial startup licensing fee of $15,000 is required to begin the business, compared with a $40,000 to $90,000 licensing fee for Dunkin' ( DNKN) or the $45,000 fee that Mcdonald's ( MCD) charges. 5 Annually, royalty fees are also requ…
The Procedure for Franchising a Subway Restaurant
- An in-depth due diligence process is required for a franchise, and the franchisee must pass a nu…
Upon gaining site approval and passing the capital requirements, next the franchisee enters into a licensing agreement with the franchisor. Subway franchisees pay 12.5% every week (gross sales minus the sales tax); 8% goes toward the franchise royalties and 4.5% goes towards advertising…
The Sales From a Subway Franchise
- Subway sandwiches and the Subway business are both well-known, which helps Subway be a leading revenue producer in the fast food sandwich industry. As of the latest available figures from 2021, Subway had its strongest sales in that year since 2013. 7
How Many Subway Locations Are There?
- According to the company, Subway has more locations worldwide than any other restaurant chain. 1 As of 2020, there are more than 40,000 locations spread across 116 countries. In the United States alone, there are nearly 21,000 Subway locations. Canada comes in second place with almost 3,000.
Who Own Subway?
- Subway, Inc. is owned and run by the DeLuca family. Subway was founded in 1965 by 17-year old Fred DeLuca. Headquartered in Connecticut, each Subway franchise is independently owned and operated. 8 Because it is privately-held and stores are owner-operated, Subway is not listed on a stock exchange.
What Is Subway's Most Popular Menu Item?
- This will vary depending on the country that a Subway is in. In the U.S., the most popular menu item at Subway is often the turkey breast sandwich, tuna, or Italian B.M.T. 9 In Australia and New Zealand, the Greek lamb with tzatziki comes in first, and in Japan the shrimp avocado sandwich. In the U.K. the Indian-inspired chicken tikka sub is most popular.
The Bottom Line
- With the benefits of an established business, low startup costs, and parent company support, a Subway franchise is a good option for entrepreneurs interested in opening a franchise business .