Subway franchise cost in the USA: investment, fees and requirements

Subway franchise cost and fees: the published US figures

Subway publishes a US franchise offer, but its current recruitment focus is multi-unit ownership. Its US FAQ gives the figures below. They were checked on 6 November 2026; obtain the current applicable FDD and written terms before using them for a transaction.

The franchise fee and the investment estimate are not interchangeable. Do not add the fee to the quoted investment range without first checking the Item 7 breakdown: a full estimate may already contain it. Likewise, meeting a liquidity minimum does not establish that the entire project is funded.

Who can apply, and is one restaurant available?

The official FAQ prefers restaurant, business or franchise experience in you or an equity partner. It currently seeks multi-unit candidates and describes acquisitions of five or more operating restaurants. The contact page also promotes larger packages. Those are recruitment signals, not a promise that every applicant can buy a single store.

Before paying for a search, valuation or property inspection, ask the official team which current opportunities fit your background, intended market and funding capacity. Establish whether it is discussing new development, an existing restaurant group or a non-traditional format. Approval depends on the actual proposal; the public financial minimum is not automatic acceptance.

Where to apply: the official route

Start on Subway’s official US franchise page ↗

Use the official page above and its US contact form. FranchinWorld is an editorial site and does not collect applications or sell territories. Prepare a concise operator profile: relevant experience, equity partners, preferred markets, intended restaurant count and a clear description of available funds.

1. Confirm fit and availability. Ask whether your proposed market and scale match current recruitment.
2. Request the relevant documents. Obtain the current FDD, agreement and any proposal-specific schedules.
3. Define the project. Identify the restaurant format or existing stores, lease situation and required works.
4. Build the funding plan. Match committed funds and any financing to the actual payment timetable.
5. Review before signing. Work through the documents and unresolved questions with independent advisers.

This is an editorial preparation checklist, not a guaranteed Subway approval sequence. Read the live application instructions and ask the franchise team about the process for your proposed transaction.

New restaurant or existing Subway resale?

A new development requires a site-specific budget and opening plan. An operating restaurant requires evidence about what you are buying. For a resale group, request store-level sales records, operating statements, payroll information, lease documents, equipment details and proposed transfer terms. Reconcile reported trading with supporting records through your advisers.

Analyse each restaurant separately before adding up the portfolio. A combined result can hide a store with a short lease, weak trading or expensive works ahead. Ask whether the purchase price includes inventory, deposits or working capital, and who pays any transfer, training or refurbishment costs that apply. Those questions do not establish that each charge will be imposed.

The seller’s asking price is not a franchisor investment estimate. It may reflect existing earnings, assets or goodwill, while additional cash is still required after completion. Confirm both Subway’s approval requirements and the landlord position before treating a resale as an available shortcut.

Premises, build-out, training and opening time

Subway’s FAQ describes freestanding, inline, endcap, drive-thru and non-traditional formats. It gives a typical opening estimate of four to twelve months and a three-week training programme. Neither estimate guarantees completion for your site. The FAQ also identifies IPC as the purchasing agent and states a ten-year brand remodel standard.

Ask for the proposed premises specification, approved layout and an itemised fit-out schedule. Establish the responsibility for utilities, structural work, access, signage and equipment. Check delivery dates and which payments fall due before financing is available. Do not infer a minimum floor area or a universal equipment budget from a different restaurant’s listing.

For an existing store, document its condition and the timing of any required works. For new premises, map site approval, lease work, permits, construction, training and staff recruitment. Ask who bears the cost if a milestone slips and how the business will fund the delay.

What the royalty and advertising charges mean in practice

The two published percentages total 12.5% of gross sales. As an arithmetic illustration only, $50,000 of monthly gross sales would produce $4,000 royalty and $2,250 advertising charges, or $6,250 combined. The $50,000 figure is an invented input, not reported Subway performance or a sales forecast.

That leaves $43,750 before food, labour, occupancy, delivery commissions, utilities and other operating costs, and before any relevant financing, tax or owner withdrawals. It does not establish profit. Use the agreement’s actual definition of gross sales and confirm how discounts, refunds and delivery transactions are treated.

Ask for the complete recurring payment schedule, including any fixed or service charges relevant to the proposal. Do not interpret the two headline percentages as proof that there are no other expenses. Run a lower-sales case and a higher-cost case as well as your main assumptions.

What evidence do you need before buying?

Ask what financial performance information is contained in the applicable FDD and whether it covers a comparable format and market. Request the context behind any claim: time period, sample, store age, exclusions and whether it concerns sales or profit. A published investment range provides no answer about the earnings of your future restaurant.

For a resale, reconcile the store records rather than relying on a sales brochure. For a new build, test the commercial assumptions using local evidence and separate them from the brand’s published facts. Review the proposed leases, territory provisions, personal commitments, transfer rules and works obligations with qualified advisers.

Use our FDD reading guide to organise questions and our cash-reserve guide to test opening delays and operating cash needs. The worksheet below is optional planning support; it does not replace a written Subway proposal.

Keep researching

More franchise research for United States · Build a complete budget · Questions to ask the franchisor