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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