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Subway Franchise Cost and Requirements for the Business Uncategorized 

Subway Franchise Cost and Requirements for the Business


Do you frequently have sandwiches for your complete meal? With the busy schedule and the fast pace of life, many people fill their stomachs with fast foods and that include sandwich meals. Many health advocates will discourage you from these kinds of foods as they tend to be unhealthy and health hazard. But have you ever tried the Subway sandwich? Because I have tried it, not once but a number of times, I am convinced why many businessmen venture on establishing this business despite the Subway franchise cost.
You will find lots of sandwich shops everywhere although not all of them carry a reputable brand name like Subway. It was in 1965 that Subway was born through two young men who dared to invest their money in this business instead of paying their college tuition fees. Originally named Pete’s Super Submarines”, the name was changed to “Subway” which I believe could be more appealing. With the success, the doors of Subway were opened to franchising in 1974. You will find the global presence of this company and anyone who is interested in the venture can ask about the total Subway franchise cost.

Subway franchise cost – how much to invest in the business

Just like any franchise opportunity, initial Subway franchise cost requires an interested business owner to put upfront payment known as franchise fee. For Subway, this cost is not huge because compared to other ventures, the Subway franchise cost is reasonably priced at $15,000. This franchise is for twenty year operation and is extendable for another 20 years without additional franchise fee. When you think of a franchise for a business, you should remember that the franchise fee is not all that would be put up by the franchisee.
Actually, a franchisee’s total Subway investment can go to hundreds of thousands. For instance, choosing a traditional location, you have to put up an amount that ranges from $115,000 to 260,000. If your site is a non-traditional location, your investment is lower at the estimated range of $84,000 to 200,000. The amount includes the franchise fee of $15,000 and cost of construction, equipment and operating capital. You can be granted a franchise if and only if you merit the company’s approval of equipment leasing. If you do not get approved, you will have to appropriate $49,500 to $72,000 for equipment lease security deposit. If you do not have enough cash, partial financing is your next option.

Requirements to be submitted by a prospective franchisee

Assuming that you have the money required for Subway franchise cost and other capital and operating expenditures, what else would Subway require of the prospective franchisee? You have to accomplish your application for franchising. You can accomplish the application on line or on papers. For online application, go to Subway website for the application. For paper submission, you can request for the form from the Subway development office. Expect to receive a franchise disclosure statement. Read the conditions and if you are amenable proceed to the basic skills test. Passing the test, you proceed to investigate the business opportunity under the guidance of the company development office. Your qualification and suitability as franchisee will be determined by the development office in conjunction with the Doctor’s Associates, Inc.

Opening of franchised sandwich shop

Franchisees, per agreement will have to undergo two-week training at the Subway World Headquarters. The training will be 50% class attendance and 50% store training. Once completed, the store will have a go signal to open.

The total Subway franchise cost may be a huge amount. However, with the existing ROI in almost all the Subway branches, the feasibility to succeed in this business venture is high. It may require huge investment but the return is compensating.

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