Opening a food franchise is one of the most rewarding business decisions for entrepreneurs, especially when it involves a globally recognized brand like Subway. Known for its healthy menu, customizable sandwiches, and affordable startup options, Subway has long been a favorite among franchise investors. If you’re considering joining this successful brand in 2025, it’s essential to understand the Subway franchise fee and the complete cost structure to get started.
Subway offers a proven business model, extensive subway franchise fee brand recognition, and strong customer loyalty. With thousands of locations around the world, owning a Subway outlet can provide a great return on investment when managed properly.
What is the Subway Franchise Fee?
The Subway franchise fee is the initial amount you pay to acquire the rights to operate under the brand name. As of 2025, the one-time franchise fee typically ranges from $10,000 to $15,000, depending on the region and type of outlet you plan to open. This fee covers the use of the Subway brand, access to proprietary recipes and systems, training, and ongoing support from the franchisor.
It’s important to note that this is just one part of the overall investment needed. Beyond the franchise fee, you’ll need to cover several other startup costs to get your store up and running.
Total Cost to Open a Subway Outlet
The cost to open a Subway store can vary depending on location, store size, local regulations, and build-out requirements. On average, the total investment ranges between $150,000 and $300,000. Here’s a breakdown of typical costs involved:
- Franchise Fee: $10,000–$15,000
- Leasehold Improvements: $50,000–$100,000
- Equipment and Fixtures: $40,000–$70,000
- Initial Inventory and Supplies: $4,000–$8,000
- Signage and Branding: $2,000–$5,000
- Insurance and Licenses: $3,000–$6,000
- Marketing and Grand Opening: $3,000–$5,000
- Miscellaneous Costs and Working Capital: $10,000–$20,000
These costs can vary significantly based on whether you’re opening a traditional standalone store or a non-traditional format, such as a kiosk inside a shopping mall or airport.
Additional Ongoing Fees
In addition to the startup costs, Subway franchisees are also responsible for ongoing royalty and advertising fees. These typically include:
- Royalty Fee: 8% of weekly gross sales
- Advertising Fee: 4.5% of weekly gross sales
These fees help fund national and local advertising campaigns, product development, and ongoing operational support.
Financing Options
If the total investment seems high, there are several financing options available to help new franchisees. Subway does not offer direct financing, but it does maintain relationships with third-party lenders who specialize in franchise funding. Additionally, many banks and financial institutions offer Small Business Administration (SBA) loans to qualified individuals looking to open a franchise.
You may also consider equipment leasing, investor partnerships, or using personal savings combined with business loans to meet the financial requirements.
Support from Subway
One of the biggest advantages of franchising with Subway is the level of support you receive. From location scouting and lease negotiation to training and marketing assistance, Subway provides a comprehensive onboarding and support program for all new franchisees.
Training typically takes place over two weeks at a certified Subway training center and covers all aspects of operations, customer service, inventory control, and staff management.
Is It Worth the Investment?
Subway remains one of the most affordable major food franchises to own. Its streamlined operations, wide brand appeal, and lower labor requirements make it attractive for both first-time and seasoned business owners. With the right location and strong operational focus, many Subway franchisees report breaking even within 1–2 years.
Final Thoughts
Understanding the cost to open a subway and full cost to open a Subway is crucial to making an informed business decision. In 2025, Subway continues to be a solid opportunity for entrepreneurs looking to enter the quick-service restaurant industry. With a manageable investment, ongoing support, and global brand power, opening a Subway can be your gateway to long-term success.
