However, before diving in, it’s essential to understand the subway franchise fee and the overall cost structure associated with opening your own Subway location.
Why Subway is a Smart Investment
Subway has carved out a unique niche in the cost to open a subway quick-service restaurant industry by offering fresh, made-to-order sandwiches, wraps, and salads. With over 37,000 stores worldwide, it has maintained its status as one of the most recognizable and trusted food brands across the globe.
Entrepreneurs often choose Subway because of its:
- Strong brand recognition
- Customizable and healthier food options
- Affordable initial investment compared to other fast-food franchises
- Comprehensive training and support systems
These benefits, combined with a streamlined business model, make Subway a top choice for aspiring franchisees.
What Is the Subway Franchise Fee?
The subway franchise fee is the initial cost you pay to acquire the rights to operate under the Subway brand. This one-time payment gives you access to the company’s proprietary systems, branding, training programs, and operational support.
As of 2025, the franchise fee for opening a new Subway store is $15,000. This amount is relatively low compared to other fast-food franchises, making it an appealing option for entrepreneurs with limited startup capital.
This fee includes:
- Use of the Subway trademark and brand
- Pre-opening training and operational support
- Initial marketing guidance
- Assistance with site selection and design
It's important to note that this fee is non-refundable and required upfront when you sign the franchise agreement.
Total Cost to Open a Subway
While the franchise fee is just one part of the investment, the cost to open a subway restaurant involves several other expenses. These include leasehold improvements, equipment purchases, signage, permits, and initial inventory.
Here’s a general breakdown of expected startup costs:
- Franchise Fee: $15,000
- Leasehold Improvements: $50,000–$100,000 (varies based on location)
- Equipment and Furniture: $60,000–$90,000
- Initial Inventory: $5,000–$8,000
- Security Deposits and Permits: $5,000–$10,000
- Training and Travel Expenses: $2,000–$5,000
- Grand Opening Advertising: $3,000–$5,000
Total Estimated Cost: $150,000 to $300,000+
This cost can vary widely depending on the location, size of the store, and local construction and labor rates. Franchisees are advised to conduct a detailed business plan and financial forecast before moving forward.
Ongoing Fees and Royalties
In addition to your startup investment, Subway charges ongoing fees that help fund its global marketing campaigns and provide continuous support.
- Royalty Fee: 8% of gross sales
- Advertising Fee: 4.5% of gross sales
These fees ensure you benefit from national advertising and marketing campaigns, ongoing brand development, and access to operational support tools and resources.
Support and Training
When you invest in a Subway franchise, you're not just buying into a brand — you're joining a comprehensive support network. Subway provides:
- A two-week franchisee training program
- In-store training for you and your team
- Help with site selection and lease negotiation
- Continued support from a local development agent
These resources are designed to give you the tools and confidence to successfully run your restaurant from day one.
Final Thoughts
Understanding the subway food franchise and the initial franchise fee is essential before you make a commitment. While the startup costs are more accessible than many other franchises, proper planning, research, and budgeting are still crucial to your long-term success.
If you’re ready to become your own boss and align yourself with a trusted global brand, a Subway franchise might just be the perfect opportunity to launch your journey into entrepreneurship.
