1. Money

Subway Franchise Cost

By August 14, 2010

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The total†investment required†to open a Subway Franchise is currently estimated between $108,000 and $300,000. The Subway franchise prefers that you have †50% of this cost available in cash and the other 50% can be borrowed money.†This includes the complete investment in setting up a Subway franchise, and also operating expenses for the first three months. After opening, franchisees pay a royalty fee, which is 8% of their overall gross sales.

Subway Franchise Cost:

Investment: $108,000 - $300,000

Training: †The Subway training course is 2 weeks and teaches business concepts, methods of operation and basic management skills. The time is spent in a classroom and on-site at a local Subway franchise for a "hands-on" experience. At the end of the two weeks, each potential franchisee must pass an exam in order to become a Subway franchisee.

Comments
August 14, 2010 at 9:50 am
(1) David says:

I am shocked that the cost to open a Subway outlet is only $108,000 – $300,000. I figured it would be much more expensive to buy into the Subway brand than that. I wonder what is the estimated time that it takes a Subway franchisee to pay back on their initial investment?

January 5, 2011 at 6:36 am
(2) shane says:

im shocked that they need such a large amount upfront and it shouldnt be borrowed , how are we ever suppose to start on our dreams if we need to couygh up so much cash , that amount would take me years to save up

January 26, 2011 at 1:36 am
(3) Barfjan Sudafedayevich says:

I am shocked that there are only 2 comments expressing shock about this article

January 26, 2011 at 10:14 pm
(4) Tom Dickenheimer says:

I’m absolutely shocked that only one person is shocked that there are only 2 people shocked about the start up costs of a Subway.

February 8, 2011 at 1:15 pm
(5) Toby Pewtershimdt says:

Iím overwhelmingly shocked that only one person is shocked that only one person is shocked that there are only 2 people shocked about the start up costs of a Subway.

February 11, 2011 at 5:12 pm
(6) Peter says:

I’m not shocked at all…

February 19, 2011 at 5:55 pm
(7) John says:

I’m shocked at how I’m actually reading how shocked everyone is. haha

March 8, 2011 at 12:33 am
(8) Zac says:

Shocking!!!!!!!!!!!!!!!!

March 27, 2011 at 5:53 pm
(9) Ray says:

Thanks for reminding me. I have to go shock my hot tub !!

April 1, 2011 at 3:03 pm
(10) Leonard says:

I’m spocked.

I’m sure that people who start up Subway stores, whether they find them an expensive initial investment or not, always manage to live long and prosper.

April 6, 2011 at 9:47 am
(11) Michael says:

From what I understand (via face to face interviewing), the start up cost can be as little as $10,000. It all depends on how big you want to be and, of course, your location.

April 9, 2011 at 5:26 am
(12) Filipina Gallarotti says:

Is this subway franchise is only in United States? Isit possible to get franchise here inb Switzerland?

April 14, 2011 at 1:19 pm
(13) jim says:

I am shocked at how stupid shane is. “that would take me years to save up”. Thats the point, should they just let anybody off the street represent them. You got to put a little skin in the game.

May 3, 2011 at 5:10 pm
(14) AStone says:

Im SHOCKED that so many ppl were shocked…N Im still SHOCKED at the shockingness of being shocked..SHOCK!!!!

May 19, 2011 at 11:56 am
(15) Shaun says:

shockedddddd

May 21, 2011 at 2:01 am
(16) Joe says:

I’ll turn off the electricity. No more being shocked in this room pls.

May 22, 2011 at 10:21 pm
(17) gia arias says:

Im extremely shocked,I was considering buying a subway franchise,but way too expensive to begin with,when would I even see my investment on that particular amount.

June 4, 2011 at 1:16 pm
(18) Nav says:

I m also shocked

June 8, 2011 at 11:33 pm
(19) TIMATONGA says:

I’m curiously SHOCKED:)

June 21, 2011 at 11:54 am
(20) KUSH says:

i was shocked when i was younger but now i am less shocked that everyone is shocked about how many people are shocked… no more i say no more please stop shocking me…

June 22, 2011 at 9:50 pm
(21) Dewayne says:

Well then, guess i’m the only one not shocked. Very suprised though!! let’s start that trend.

July 23, 2011 at 1:38 am
(22) Dane says:

Upfront in cash.. I can’t believe it

July 25, 2011 at 1:54 pm
(23) mona b says:

Hahahahhahahahahahhah!! You guys are hilarious!!!!

August 5, 2011 at 3:31 pm
(24) finis says:

considering the cost of equipment and the build out, opening inventory, etc.. not to bad, my question is what is the food cost from subway, as I’m sure I could not procure produce from a local farm to cut cost.

August 5, 2011 at 4:58 pm
(25) mat davis says:

way to crush my dream.

August 24, 2011 at 3:23 am
(26) Mel says:

Having been a store manager at another popular fast food franchise in the past, I am surprised at the initial requirements of 50% cash up front. I have opened 2 franchise restaurants, both under loan programs via Small Business Developement centers. are we expected to compound loans in order to provide the start up costs? This seems to be contradictory to the mission. I wouldn’t want to spend the first 2 years of operation repaying loan, as well as the 8% royalty – ultimately not seeing a profit for awhile. I don’t know, in the end the bottom line is that an investment is not an investment if it costs more than the potential profit.

September 18, 2011 at 11:57 pm
(27) non-american says:

Ask mr bill gates, 0.000003 percent of his daily pocket money to start a subway franchise

September 23, 2011 at 12:14 am
(28) nolinga says:

From the comment it seems most of you aspire to own subway franchises someday so you must all be “business” men or women, but i’m SHOCKED that most of you do not understand the business. now, don’t just focus on the amount (108K – 300K) which just by itself is huge, but ask yourself why is it that much … maybe operating cost … go ahead do some thinking it is required in business … oh are you SHOCKED that also is required too. SHOCKING!

October 4, 2011 at 9:56 pm
(29) Michael Turner says:

I’m shocked that there is so much attention to people being so shocked.

October 5, 2011 at 3:27 am
(30) nils says:

not shocked anymore – just sold my subway franchise

October 12, 2011 at 3:35 am
(31) Teamz says:

I was totally shocked just by reading all the comments from the top where there was nothing to be shocked to begin with. It is not about the start up cost but the royalty since they are trying to collect 12.5% from the gross sales minus sale tax. I got that information directly from the subway website which is totally insane. I don’t think there is a hope to make money by running the subway store period!

October 18, 2011 at 3:37 am
(32) mike says:

Super Shocking!!!!

November 7, 2011 at 9:42 pm
(33) VOA says:

I am extremely shocked that you guys are not shocked enough by electricity of subway. I was hoping to find something informative about how the subway franchise operates but I am so shocked that no one has provided any positively shocking information about the earning potentials.

November 8, 2011 at 12:40 pm
(34) ron says:

the people who are so shocked at the costs don’t understand business very well. Nothing in life is free. You have to earn it. spend less time on the computer complaining and more time researching and you will find there have been a lot of people become very wealthy due to owning Subway franchises.

November 17, 2011 at 10:19 am
(35) Charlene says:

I want to live thel dream of having my own Subway business an I think that the price of the cash down should be 25,000 that way there would be more people living the dream, not just dreaming.

November 30, 2011 at 10:58 am
(36) Subway Owner says:

….I’m shocked.

November 30, 2011 at 12:55 pm
(37) SHOCKED says:

I wasnt shocked at all until I saw SHOCK comments. now SHOCKED Power 3

December 12, 2011 at 7:37 pm
(38) Browser37 says:

I’ m MEGA shocked of so much sockingness!!!!… :-) a drink of water may help.. :-P

December 19, 2011 at 11:32 am
(39) planetoftheapes says:

fantastic everybodys shocked, gj shane thanx for your stanford educated response to the article. your iq must be well above 800. great way to start a revolt against subways high startup cost. obviously youve done your hmwk on the issue and now all of us should just give up. one can only tell by your eloquent use of the english language that you must be a superior thinker; therefore we should all follow your advice to not buy a subway. thanx again for your invaluble existence.

December 26, 2011 at 11:53 am
(40) Vern says:

Someone call Jeremy Shockey!

December 30, 2011 at 6:12 pm
(41) curt says:

This is all sooooo shocking!!

December 31, 2011 at 7:32 am
(42) STEVEB says:

I am probably the last person to be SHOCKED for this year by the cost of starting up the business. Hey don’t be SHOCKED if the price goes up even more the next year!!! Thinking of it SHOCKS MEE :)

January 4, 2012 at 11:36 pm
(43) Blair says:

First of all, this whole exchange is amazing! I was looking for info and instead was please to read that so many people were willing to climb aboard this ridicule. Anyways anyone with previous subway ownership wanna chime in here? I actually am very interested in becoming a franchise owner. shock me

January 6, 2012 at 2:13 am
(44) stephifif says:

I am not shocked that there is more than one idiot out there commenting on being shocked about the cost of starting a subway franchise.

January 11, 2012 at 9:50 am
(45) TOm says:

I just wanted to leave a comment without the word “shocked” in it.

January 12, 2012 at 2:00 pm
(46) jose says:

To put it mildly

I am totally shocked that people are shocked about being shocked. The shock for me comes with seeing people surprised that other people are surprised about various aspects of the intial cost of opening a franchse, startup costs, loan requirements, etc. This, in and of itself, lends credibility that to shock someone is to love them.

So I love you all, you are so shockingly precious!!

jose

January 27, 2012 at 11:13 am
(47) deshocked says:

Is it too late for me to be shocked?

February 5, 2012 at 11:44 pm
(48) TJ says:

to be subway owner we need at least $200000-300000 minimum capital on hand for good location and maximum $8000-10000 turn over per week..but its too costly

February 8, 2012 at 3:32 pm
(49) Plaza King says:

Im not surprised at all. I have a location and added subway to part of the existing business. Simple negotiations

March 4, 2012 at 2:34 am
(50) ang says:

im shocked..i was planning on investing in purchasing a small subway with an ok location.i didnt know it would cost that much of a hugh downpayment..i dont know what i should do now..

March 4, 2012 at 9:39 pm
(51) DMoney says:

I’m going to give you all the shocker!

March 5, 2012 at 2:01 pm
(52) Andy says:

How much is
a. Franchise fees
b. Royalties
c. Projected earnings and/or Gross Sales per year
d. Operating Costs
e. Exclusivity

March 18, 2012 at 7:40 pm
(53) Ben Dover says:

Is this real information?
or is everyone just shocked??

March 26, 2012 at 11:25 pm
(54) ed says:

that’s not much money up front … try getting a McDonalds franchise – Million’s baby!!!

April 19, 2012 at 6:46 pm
(55) MIke says:

Shock and Awe?
BTY, I just signed a franchise agreement with Subway. It is not necessary to have 50% of the total cost of development. I am using an SBA preferred lender and, using SBA guidelines, I am required to provide 25% up front of the the estimated cost.
Subway will require a personal financial statement, among other requirements, before allowing one to progress through the approval process.The bottom lline is you must have the financial ability to obtain financing along with your required cash contribution. They also do a background check and require all applicants to take and pass a timed standard math and English test.
The process of obtaining a Subway franchise from initial application to opening day can take from six months to over a year. There is much more to it than meets the eye. However, it can be exciting, fun, and rewarding. Like any other business, you must be dedicated and be willing to work hard. Good Luck !!

April 24, 2012 at 10:38 am
(56) Gallitin says:

The best information I found for starting a subway franchise was here http://subwayfranchisecost.net/

Thanks,

-Gall

May 16, 2012 at 7:18 pm
(57) Jeff says:

I’m not shocked. I just simply can’t believe it!

May 20, 2012 at 12:04 pm
(58) dinero says:

LOL @ ALL THE SHOCKS

May 23, 2012 at 7:32 pm
(59) Nicole says:

Is It shocking to ever be Shocked about the shocking things during these shocking time? If so then , I am shocked That the first 2 are shocked at the shocking prices!

June 4, 2012 at 7:24 am
(60) mars says:

I’m shocked at how gay everyone is

June 13, 2012 at 2:25 am
(61) Larry says:

I’m amazed at how many people are shocked!! Get your finger out of the light socket and see how much it will cost to get a McDonalds franchise.
You will really be shocked!! And who eats at Mcdonalds?? Fat people!

June 19, 2012 at 2:19 am
(62) sub lady says:

I currently own a subway franchise, and the reason for neding so much cash up front is that 25,000 would barely get you through 1 month of operating expenses, and then you need all the equipment and franchise fee and expenses to travel for training and etc. You can get a loan for a lot of this, but I would say $30,000 is BARE minimum of casho n hand you will need if you take over an exhiting location. If you open a new location, it will me much, much more. Hope this helps. Oh and BTW, a location like ours brings in about $450,000 a year. Take home is about $40,000.

June 23, 2012 at 11:52 am
(63) Isidro guerrero says:

Man this is good news because I work for subway in gainesville I could just but one out right and I am only a sandwich artist

July 17, 2012 at 11:25 am
(64) Andrew says:

I’m not shocked.

July 24, 2012 at 10:23 am
(65) raj says:

is the same price if we buy the franchise in the out of city

July 25, 2012 at 1:27 am
(66) Jib says:

Im also shocked because everybody shock me

Lets shock together

August 2, 2012 at 4:46 pm
(67) Juan Yero says:

I am also shocked

August 4, 2012 at 8:46 pm
(68) Mimi says:

$100-$300k to own a subways franchise I wasn’t shocked I was electricuted

August 21, 2012 at 7:28 pm
(69) Wayne says:

Try owning a Mc Donalds….you will be SHOCKED!.I’s like everything else,work.Work hard and you can achieve anything.,don’t and you’ll end up like Bama wants us all to be,sitting at home collecting a bare minimum check with a little money for food stamps.

August 29, 2012 at 12:58 am
(70) fixThis says:

I gave my girlfriend a footlong and then I shocked her!

September 3, 2012 at 5:39 pm
(71) Dreamer says:

@ sublady– your only making 40k a year? I don’t no where you live or what the cost of living is like in your area but there is no way in hell I would go through all the trouble of owning and running a business for 40k a year! That is totally not worth my time or effort. I live in longisland, new York and you can’t survive on 40k a year here. I would have to make 6 times as much for it to even be worth my while. Why is it that you are making so very little?

September 10, 2012 at 6:06 pm
(72) javed says:

sublady
dreamer comments is very valid and required your answer.
further i am very interested to start subway franchise in UK.

anyone can advice the property or location?
what is average c. Projected earnings and/or Gross Sales per year?

September 11, 2012 at 10:49 pm
(73) Monica says:

@sublady,
really would like to hear your answer about your annual salary? How long have you been in business? How long does it take to really make money?

September 20, 2012 at 6:23 pm
(74) Bunny Staufer says:

This comment is shocked that the previous two comments did not express their shock in a self-referncing manner.

October 1, 2012 at 11:22 am
(75) Mel says:

I’m Shreked

October 5, 2012 at 10:31 pm
(76) Bob says:

This is one of the worst franchises of all time, I own one. It’s almost like a Quiznos. Don’t believe Entrepreneur Magazine. The franchises are control by private development agents who have the power to kick you out if they don’t like you, and you don’t have any recourse but arbitration. These agents are like mafia men, they are rich and control everything, anything you do or say that’s out of the norm, can be used against you in your monthly evaluations done by the agent’s employee aka Field Consultant. They even dictate how much you can sell your franchise for, so all in all, you have no rights and a prisoner of their system.

October 12, 2012 at 11:38 am
(77) shocked says:

who cares about this. You guys are all stupid.

October 13, 2012 at 12:31 am
(78) Solid says:

Wow, 2 years of shocking comments. i’m the opposite of shocked! thats right unshocked.

October 14, 2012 at 1:28 pm
(79) james says:

I’m shocked that I’m shocked

October 26, 2012 at 10:42 am
(80) derulo says:

shocked also!

October 27, 2012 at 7:18 pm
(81) SGM says:

Im shocked that Im waisted my time reading about everybodu being shocked:))

October 27, 2012 at 11:19 pm
(82) Akashvir singh kang says:

i want to get a franchisee of subway in my city..it has population of across 2 lakh people and there is no good restaurant in my city

November 12, 2012 at 7:54 pm
(83) Wher am i? says:

I am shocked that I read 82 comments about people being shocked about the cost of running a subway. For us here in New York, these subways a re a critical form of transportation.

November 12, 2012 at 10:54 pm
(84) Shocker says:

I am shockingly shocked.

Later
Shocker

November 19, 2012 at 5:28 pm
(85) TD says:

SHOCK YA’LL

November 20, 2012 at 9:00 am
(86) Me says:

About Sub Lady’s $40k take home. Most likely she’s an absentee owner and pays a manager. Recap with $40k per yr would be clear at year 2-3. Not bad

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