Effective: 04/2005 INT
SUBWAY® Franchise Capital Requirements
Traditional Restaurants
INTERNATIONAL
US Dollars
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M o Codera st te
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General Breakdowns For:
Initial Franchise Fee ................................................................................................................................... $10,000 $10,000 $10,000 Real Property*............................................................................................................................................. 12,000 24,000 4,000 Leasehold Improvements........................................................................................................................... 28,000 47,500 75,000 Equipment .................................................................................................................................................. 25,000 40,000 65,000 Security System (not including monitoring costs)..................................................................................... 3,500 7,000 1,500 Freight Charges (varies by location) ......................................................................................................... 3,000 5,000 2,500 Outside Signs ............................................................................................................................................. 4,000 6,500 2,000 Opening Inventory ..................................................................................................................................... 5,000 7,000 2,500 Insurance .................................................................................................................................................... 2,000 2,500 1,500 Supplies ...................................................................................................................................................... 2,000 3,000 1,000 Training Expenses (including travel and lodging) .................................................................................... 5,000 7,000 3,000 Legal and Accounting ................................................................................................................................ 500 2,000 3,500 Opening Advertising ................................................................................................................................... 6,000 2,000 4,000 Miscellaneous Expenses (business licenses, utility deposits, small equipment and surplus capital) .. 10,000 2,000 6,000 Additional Funds - 3 Months.................................................................................................................. 25,000 9,000 18,000 Estimated Total Investment**.................................................................................................................. $94,500 $164,000 $256,500
upon signing Franchise Agreement upon signing Intent to Sublease pro rata during construction before equipment is ordered before order placed on delivery before order placed within 1 week of opening before opening before opening during training before opening around opening as required as required
* This amount is the estimated deposit of 2 months rent payable upon signing the Intent to Sublease (does not include "key" money). ** If the equipment lease/hire-purchase program is available in your country and we do offer it to you, you should substitute the costs for Equipment with a security deposit of up to $2,500 and any applicable taxes. Lease/hire-purchase payments will be due monthly over a period of 60 months. The amount of Additional Funds for the 3 months operating expenses would also be adjusted to reflect the 3 monthly equipment lease payments you will be responsible for. This will cause your total initial investment to be lower. (REFER TO GRAPH BELOW) Lower Cost $72,000 Moderate Cost $125,500 Higher Cost $192,000
The costs with an equipment lease, excluding the additional lease/hire-purchase monthly expenses for 3 months and excluding any applicable taxes, INTERNATIONAL including sales taxes, are estimated at:
THESE FIGURES ARE ESTIMATES OF THE COMPLETE INVESTMENT IN SETTING UP A SUBWAY® RESTAURANT AND OPERATING IT FOR 3 MONTHS. IT IS POSSIBLE TO SIGNIFICANTLY EXCEED COSTS IN ANY OF THE AREAS LISTED ABOVE. Some costs will vary in relation to the physical size of the restaurant. A lower cost restaurant is one that would require fewer leasehold improvements, less seating and fewer equipment expenditures. Moderate and higher cost restaurants may require extensive interior renovations, extensive seating and additional equipment. If you are purchasing a franchise for another location opportunity, such as a non-traditional, satellite or school lunch program location, the above listed capital requirements may vary and could be substantially lower depending upon the necessary equipment you must acquire or changes in leasehold improvements you must make. The above figures do not include extensive exterior renovations. Costs do not include “key money” or stamp duty.
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