Franchise Deep Dive: Subway Franchise Costs, Fees, Profit and Data

LAST UPDATED: September 2024

FRANCHISE WEBSITE: https://subwayfranchise.com/ 

NUMBER OF LOCATIONS: 37,000

REPORTED COST TO GET IN: $229,050 - $522,300 (not including real estate)

REPORTED ROI (Item 19): N/A

Subway is a globally recognized brand, famous for its fresh sandwiches, salads and wraps. Emphasizing healthier fast-food choices, Subway has built a loyal customer base around the world.

How Many Subway Locations Are There?

In 1965, Fred Deluca, a college freshman, received a $1,000 investment from Dr. Peter Buck, a nuclear physicist, to open a submarine sandwich shop named Pete’s Subway in Bridgeport, Connecticut, with the aim of helping to pay his tuition.

A second location followed in 1966, and by 1972, the name was officially changed to Subway. With a mission to expand to 32 restaurants, the company began franchising in 1974. Subway has since grown rapidly, becoming the largest single-brand restaurant chain and the largest restaurant operator in the world. However, this rapid growth has not been without challenges, as the company has faced several controversies along the way.

Over the past decade, Subway has experienced a decline in the number of its locations due to various factors such as market saturation, dissatisfied franchisees, supply chain issues and increased competition. In 2021, the number of Subway franchises saw a net decrease of 1,043. Recently, the chain was sold to the private equity firm Roark Capital.

At the end of 2022, according to the brand’s Franchise Disclosure Document (FDD), the brand had 20,576 locations across the U.S. Internationally, Subway has around 37,000 locations in total, with over 10,000 franchisees in its system.

What Is Subway’s Business Model?

Subway restaurants are commonly found in strip malls and standalone buildings, as well as in non-traditional venues like airports, hospitals and college campuses. The brand offers a fast-casual dining service with an emphasis on takeout and delivery, with catering options available. The menu mainly includes a selection of sandwiches, wraps and salads, along with additional options like cookies, drinks and chips.

There are three official building types available:

• Drive-Thru
• Inline
• Non-Traditional

How Much Can Subway Franchise Owners Make?

According to the brand’s 2023 FDD:

“Subway does not make any representations about a franchisee’s future financial performance or the past financial performance of company-owned or franchised outlets. If you are purchasing an existing Subway franchised location, the company may provide you with the actual records of that specific franchise.”

How Much Does It Cost To Open Subway?

The total initial investment necessary to begin operation of a Subway franchise ranges from $229,050 to $522,300. This does not include real estate costs.

What Is the Franchise Fee for Subway?

The franchise fee required to begin operation of a Subway franchise is $15,000, which must be paid to the franchisor. 

Who’s On Subway’s Leadership Team?

• John Chidsey — CEO 
• Douglas Fry — President, North America
• Carrie Walsh — President, Europe, Middle East and Africa
• Jeff Shepherd — Chief Financial Officer
• Mike Kappitt — Chief Operating & Insights Officer
• Ilene Kobert — Chief Legal Officer
• Donagh Herlihy — Chief Digital & Information Officer
• Lisa Shea — Chief Human Resource Officer

What Helpful Articles Can I Read to Learn More About Subway?

• Subway Announces a New Price for Footlongs as It Enters the Value Menu Wars
• Subway Calls ‘Emergency’ Meeting With Franchisees as Sales Plummet
• Subway Franchisor Can't Strike 19 Words From Ruling
• 48-Unit Subway Franchisee Declares Bankruptcy
• Subway Unveils New Footlong Dippers: Here's What They Are

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