The average Subway franchise generates around $400,000 in revenue, with profit averaging around $41,000 per year.
Is a Subway franchise a good investment?
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.
How much does it cost to become a Subway franchise?
How much is the franchisee fee? The initial franchise fee ranges from $10,000 – $15,000* (US dollars) depending on your country.
How to Open a Subway Sandwich Shop
Why should I not buy a Subway franchise?
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. Super high marketing fee: Subway charges, in addition to 8% royalty fee, a 4.5% marketing fee. That again is charged on top of your gross revenue.
How much does it cost to own a subway?
As noted in the chart above, the standard Subway franchise fee is $15,000. However, exceptions do apply. Subway currently offers a discount of the franchise fee for qualified US Veterans who purchase a franchise.
Despite its size and stature it is one lowest in the fast food Industry. Apart from the Franchise fee, one is also supposed to pay the following: Royalty fee to the brand which is based on gross sales minus sales tax and is 8%. Advertising fee of 4.5% is to be paid to the ‘Franchisee Advertising Fund’.
How long does it take to get a Subway franchise?
The Subway ® brand has the lowest start-up costs in the industry. The total amount of investment will depend on the location, rent, size, equipment and extent required. The validity for a Franchise agreement is for 20 years and is renewable for 20 years (subject to terms and conditions).
Are there any other locations for Subway franchises?
Additional franchise options include: non-traditional locations, airport terminal, theme park and national park locations, satellite locations, community development program locations, military base locations, and co-brand locations.