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General

Industry

Food and Beverage

Category

Fast Casual Restaurant

SBA Identifier

S1639

Year of Founding

1967

Fees

Marketing Fee

0

Royalty Fee

8%

Franchise Fee

$15,000-$15,000

Investment Range

$168K-$477K

Location units

Total U.S. Locations

22201

U.S. Franchised Units

22201

U.S. Corporate Units

0

Headquarters (City)

Milford

Other

Item 19 - Franchise Financials

No

Financing Availability

yes

Started Offering Franchises

1974

Issuance of FDD Data

04/26/2021

What to know about Subway franchise?

As a Subway franchisee, you will sell foot long and other sandwiches, salads and other food items from a retail establishment

Subway is based in Milford, CT. Scroll down to learn more!

How much does a Subway franchise cost?

Are you wondering how much is a Subway franchise? Before starting a Subway franchise, it is important to know the franchise fee, working capital and other costs required to start the business.

The minimum investment amount required to open a Subway franchise is $167,500 and can go all the way up to $476,900. Keep in mind, you should also allocate additional funds to live off of while the Subway business ramps up. This can take as little as 6 months to over 2 years depending on the franchise opportunity. You should speak to at least 5 Subway franchisees to understand the true cost of opening the franchise and how long it takes to: 1) start a Subway business 2) pass break even 3) hit significant income.

After (and if) you pass the point of earning significant income from your Subway franchise, there may be enough margin to hire a day-to-day manager and work less hours in the business.

Franchise Net Unit Growth

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Industry Report Request

Download our guide to compare Subway. Hotels to the Fast Casual Restaurant, Outdoor Food and Beverage industry.

Franchise Data

Year Start of Year Units Opened Units Closed End of Year
2017 27129 527 1340 26772
2018 25906 487 1494 24798
2019 24798 419 1317 23802
2020 23799 378 1886 22201

Additional Details

How much does a Subway franchise owner make?

Subway franchise earnings and revenue can vary significantly from one franchisee to another.
The Subway franchise owner profits can be influenced by labor costs, lease rates, hours worked as well as other factors.

Subway unfortunately does not disclose financials on how much Subway franchise owners make. This means they do not disclose sales or earnings for franchisees operating in the U.S.

Every franchisor is required by law to disclose income statements and balance sheets for how the franchisor is performing but not for the franchisee level. Unfortunately, Subway does not make it easy to understand franchisee financial performance. This can be seen as a red flag and it is important to be that much more diligent in your conversations with Subway franchisees. Do note that Subway is not alone as about 40% of franchises do not disclose franchisee financial performance.

At Vetted Biz, we suggest you to speak with 5 to 10 Subway franchisees to understand how much money they are making from their Subway business.

You should also speak to former Subway franchisees to understand why they left the system. Did they sell their Subway at a profit? Were they forced to close their Subway franchise down because it kept losing money?

What is the Subway franchise fee?

Owning a Subway franchise requires 8% royalty fee and 0% marketing fee. These two expenses represent the main ongoing costs you can expect to pay the franchisor throughout the franchise relationship. There may be other ongoing fees disclosed in the Subway Franchise Disclosure Document

Keep in mind, there is also an initial Subway franchise fee of $15,000 that is included in the initial investment amount of $167,500 to $476,900. Depending on the franchise agreement you sign, you might have to pay the full franchise fee again if you decide to extend the Subway franchise relationship. Consult with a licensed franchise attorney to understand exactly what you receive for paying the Subway franchise fee of $15,000.

Visit the Subway metrics tab to explore the financials for this business, royalty and marketing fees compare to other Food and Beverage franchises. You can also compare these fees for 2,000+ franchises currently offered in the U.S.

When was Subway founded?

Subway started offering franchises in 1974. Subway was founded 55 years ago in 1967.

At Vetted Biz, we recommend franchises have 3-5 corporate locations and 5+ years of experience before offering a franchise. There needs to be proof that the business model works and is replicable before offering the franchise to other!

How many Subway locations are in the U.S.?

As of 2021, there were 22201 locations across the U.S. There are also 0 corporate locations. Most Food and Beverage franchises like Subway have more franchised locations than corporate locations.

How many Subway franchises opened over the past few years?

Over the prior 3 years we have data for, Subway has opened 1284 outlets throughout the U.S. Visit the Subway metrics tab to explore how the openings compare to other Food and Beverage franchises.

How many Subway franchises closed over the past few years?

Over the prior 3 years we have data for, Subway has closed 4697 outlets throughout the U.S

Visit the Subway metrics tab to explore how the openings compare to other Food and Beverage franchises.

Is Subway growing? Are they opening more locations than they are closing?

The net unit growth rate for Subway over the past 3 years is -14%. Over the last year we have data for, Subway had a net unit growth rate of -7%.

Without a comparison, this number doesn’t mean much. Compare how the Subway growth rate compares to 2,000+ other franchises and Industry franchises like Subway. More info in the Subway metrics tab.

Is Subway franchise eligible for an SBA Loan?

Subway is eligible for SBA loans including the 7(a) loan. To find out more about the SBA loan program for franchising click here.

Subway franchise was assigned the SBA Franchise ID of S1639 on 10/01/2017. This DOES NOT mean the SBA endorses this franchise. The SBA Franchise Directory will only include business models like Subway that are reviewed and found eligible under SBA’s affiliation rules and other eligibility criteria. Currently, there are over 7,000 franchise opportunities that the SBA has deemed eligible for SBA financing.

Is Subway a franchise in the United States?

According to the SBA, Subway meets the Federal Trade Commission (FTC) definition of a franchise. The FTC Franchise Rule requires franchisors to provide all potential franchisees with a disclosure document (FDD) containing 23 items about the franchise, its officers, and other franchisees. Be sure that Subway provides you with an FDD if you are in discussion to buy a Subway.

What is the Subway Franchise for Sale Rate?

The Subway systemwide health and franchisee satisfaction can be measured by the Subwayfranchise for sale rate. The franchise for sale rate is calculated by the percentage of units transferred to new franchisees and reacquired by franchisor.

Subway franchise for sale rate over the past 3 years is 17%. Over the last year we have data for, Subway had a franchise for sale rate of 4%.

Without a comparison, this number doesn’t mean much. Compare how the Subway franchise for sale rate compares to 2,000+ other franchises and Industry franchises like Subway. More info in the Subway metrics tab.

What is the Subway Franchise Failure Rate?

Subway franchise failures comprise franchise terminations, franchise non-renewals, and franchises that ceased operations for other reasons. The failure rate is one of the most important franchise metrics to consider when investing in a franchise!

Subway failure rate over the past 3 years is 21%. Over the last year we have data for, Subway had a franchise failure rate of 8%.

Without a comparison, this number doesn’t mean much. Compare how the Subway franchise for sale rate compares to 2,000+ other franchises and Industry franchises like Subway. More info in the Subway metrics tab.

How can I find out more details on Subway franchise?

Visit the Subway metrics tab to explore franchise profitability, industry comparables and more. Become a Vetted Member today today for exclusive access on this franchise opportunity!

Investment Midpoint

The average of the low and high range of the investment amounts calculated from the most recently available Franchise Disclosure Document

Subway

$322,200

Industry median

All franchises median

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Royalty Fee

The median royalty fee from the Franchise Disclosure Document

Subway

8%

Industry median

All franchises median

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Franchise Fee Midpoint

Payment that the franchisee must pay to the franchise owner in order to start a franchise.

Subway

$15,000

Industry median

All franchises median

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Item 19 – Financial Performance Representations

Historical financial performance representations

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Franchise Financials

Franchisor company financial information and financial performance representations, if disclosed by the franchisor.

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Franchise Disclosure Document

Download Latest FDD (2021)

General

Industry

Food and Beverage

Category

Fast Casual Restaurant

SBA Identifier

S1639

Year of Founding

1967

Fees

Marketing Fee

0

Royalty Fee

8%

Franchise Fee

$15,000-$15,000

Investment Range

$168K-$477K

Location units

Total U.S. Locations

22201

U.S. Franchised Units

22201

U.S. Corporate Units

0

Headquarters (City)

Milford

Other

Item 19 - Franchise Financials

No

Financing Availability

yes

Started Offering Franchises

1974

Issuance of FDD Data

04/26/2021

Detailed Franchise metrics for Subway

Detailed Franchise Metrics are metrics calculated and reviewed by Vetted Biz. You can find the available metrics for Subway below. “N/A" or Not Applicable results mean that there is not enough data available to compute a precise rate or that the result is not mathematically computable. When results are not mathematically computable, you should pay attention to the absolute values (#) instead of the percentage rate itself.

Franchise Fee Midpoint

Payment that the franchisee must pay to the franchise owner in order to start a franchise.

Subway

$15,000

Industry median

All franchises median

Unlock premium content

Franchise Disclosure Document

Download Latest FDD (2021)

Net Unit Growth (most recent year)

Net Unit Growth (3 years)

Failure Rate

Franchise failures comprise franchise terminations, franchise non-renewals, and franchises that ceased operations for other reasons.

 

1 year

3 years

Subway

6%

21%

Industry median

All franchises median

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Franchise for Sale Rate

The percentage of units transferred to new franchisees and reacquired by franchisor.

 

1 year

3 years

Subway

6%

17%

Industry median

All franchises median

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Business details

Website

https://***********.com

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Business email

**********@******.com

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Mailing address

325 Sub Way

State headquarters

Connecticut

Key leadership

Subway

Phone

+1 (000) 0********00

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City

Milford

Zip code

06461
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