How Much Does It Cost to Start a Subway Franchise?

How Much Does It Cost to Start a Subway Franchise?

How Much Does It Cost to Start a Subway Franchise?

The total cost to open a Subway franchise ranges from $114,000 to $258,000 for traditional locations and $84,300 to $200,000 for non-traditional locations, as of 2015. These totals include the $15,000 franchise fee, construction and equipment costs, and operating capital.

The total cost assumes that the franchise owner uses Subway's equipment-leasing program. If an owner chooses not to use, or does not qualify for this service, the cost may increase. Subway encourages franchise owners to have half of the required amount in cash and to finance the other half. Once the store is open, the franchise owner must pay 8 percent of gross sales to a parent company and 4.5 percent of gross sales for marketing purposes.