cost of a subway franchise
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Effective: 04/2005 INT
SUBWAY® Franchise Capital Requirements
Traditional Restaurants
INTERNATIONAL
US Dollars
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General Breakdowns For:
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Initial Franchise Fee ................................................................................................................................... $10,000 $10,000 $10,000 upon signing Franchise Agreement
Real Property*............................................................................................................................................. 4,000 12,000 24,000 upon signing Intent to Sublease
Leasehold Improvements........................................................................................................................... 28,000 47,500 75,000 pro rata during construction
Equipment .................................................................................................................................................. 25,000 40,000 65,000 before equipment is ordered
Security System (not including monitoring costs)..................................................................................... 1,500 3,500 7,000 before order placed
Freight Charges (varies by location) ......................................................................................................... 2,500 3,000 5,000 on delivery
Outside Signs ............................................................................................................................................. 2,000 4,000 6,500 before order placed
Opening Inventory ..................................................................................................................................... 2,500 5,000 7,000 within 1 week of opening
Insurance .................................................................................................................................................... 1,500 2,000 2,500 before opening
Supplies ...................................................................................................................................................... 1,000 2,000 3,000 before opening
Training Expenses (including travel and lodging) .................................................................................... 3,000 5,000 7,000 during training
Legal and Accounting ................................................................................................................................ 500 2,000 3,500 before opening
Opening Advertising ................................................................................................................................... 2,000 4,000 6,000 around opening
Miscellaneous Expenses (business licenses, utility deposits, small equipment and surplus capital) .. 2,000 6,000 10,000 as required
Additional Funds - 3 Months.................................................................................................................. 9,000 18,000 25,000 as required
Estimated Total Investment**.................................................................................................................. $94,500 $164,000 $256,500
* 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)
The costs with an equipment lease, excluding the Lower Cost Moderate Cost Higher Cost
additional lease/hire-purchase monthly expenses
for 3 months and excluding any applicable taxes, INTERNATIONAL $72,000 $125,500 $192,000
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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