Subway Franchise Cost
So, how much does a Subway franchise cost? Well, the estimated cost of opening and operating a Subway franchise for the first three months can range between $100,050 – $342,400. This amount usually varies depending on the location of the franchise and the type of structure or building you have in mind for the restaurant.
Unlike other fast food restaurants, Subway has two different types of franchises. These include the traditional and non-traditional Subway franchises. For traditional locations, they are full-service restaurants that purposely operate as a Subway restaurant.
On the other hand, non-traditional Subway locations are housed and operated by another business. That said, let's look at how much is a Subway franchise.
1. Initial Franchise Fee
For the initial Subway franchise fee, the amount you can expect to pay is about $15,000.
2. Real Property
The real property cost is essential because it’s the location where the Subway franchise will be situated. Here, the amount can be between $2,000 - $12,000.
3. Leasehold Improvements
Here, you should expect amounts ranging from $40,900 - $200,000.
4. Equipment Lease Security Deposit
The equipment lease security deposit is estimated to be around $7,500 - $15,500.
5. Optional Security System
While this activity is optional, it’s essential for you to consider setting up a security system for your Subway franchise. If you do, this might cost you from $2,450 - $3,550.
6. Freight Charges
The freight charges aren’t standard amounts also and they vary by the location of the Subway franchise. For freight charges, the amounts range between $3,000 - $14,000.
The outside Subway signage is important and can cost you about $1,600 - $8,000.
8. Opening Inventory
When opening any fast food franchise, you need to have the opening inventory on deck. And for this, the amount ranges between $4,400 - $6,050.
9. Insurance Costs
The insurance costs of opening and running a Subway franchise for the first three months can cost you about $1,200 - $5,000.
10. Supplies Costs
These are probably the lowest amount on the list and range from $500 - $1,300.
11. Training Expenses
The training expenses include traveling, living, and lodging costs, which can range somewhere between $2,500 - $4,500.
12. Legal and Accounting Costs
To operate lawfully, these costs should be considered and can range from $1,000 - $3,500.
13. Opening Advertising Costs
To get your business out there and noticed, the opening advertising costs can cost you about $2,000 - $4,000.
14. Miscellaneous Expenses
These include utility deposits, small equipment fees, and the business license. For miscellaneous expenses, the amount ranges between $4,000 - $8,000.
15. Additional Funds
These funds are estimated up to the first three months of operation and range between $12,000 - $42,000.