Are you interested in starting your own Subway franchise? If yes, then you are not alone! The fast food restaurant business is one of the most popular options for people looking to get into the food business. But how much does a Subway franchise owner make?
Also, what are the costs associated with starting a Subway franchise? And what are the requirements to open? Also, how is a subway franchise different from other fast food chain franchises in terms of cost and profit? Read on to find out all the details.
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How Much Does a Subway Franchise Owner Make?
The most successful subway franchise owners make between $30,000 and $40,000 a year, which is about 7% of annual sales.
We now arrive at these numbers by dividing Subway’s total annual sales in 2021 ($9.4 billion in revenue) based on total franchises in 2021 (21,147 franchises). This gives us $444,507 in average annual franchise sales. If we get 7% of this, then it becomes a profit of $31,000 per year.
But it’s not as easy as just submitting a franchise application, opening your Subway franchise, and starting raking in dollars. It takes 1-2 years to build a successful Subway business. So if you are an entrepreneur with patience, this could be your business opportunity.
What are the opening costs?
If you’re thinking about investing in a Subway franchise, it’s important to do your research first. This includes understanding the cost of a franchise, which can vary depending on the location and size of the store.
The cost of a franchise can also depend on a number of other factors such as the type of food served and the planned marketing and advertising campaign. Key factors include:
| Expenses | Costs |
| Rental Property | $700 to $8,000 |
| Rental Property Improvements | $4,000–$38,000 |
| Equipment | $1,000–$21,000 |
| Security systems | 400 – 2600 USD |
| signboards | $400-7000 |
| Opening inventory | $900 – $3,500 |
| Insurance | $150-1500 |
| Legal and accounting | $150-3500 |
| Opening ads | $400 – $2,000 |
A source: Mobile-Cuisine.com
On top of that, you’ll also have to pay a $15,000 franchise fee ($7,500 if you’re in the military or are already a Subway franchisee), plus you must have some $40,000 in liquid capital. You also need to have at least $80,000 in franchise net worth. Thus, in general, the total investment can vary from $116,200 and $262,850.
Things Subway takes care of when opening a franchise
One of the main benefits of opening Subway franchises is that you don’t shoot in the dark. In addition, they will help you run a franchise and offer advice/training on various aspects to make sure you can manage operations well. Also, here are some things they can help you with:
- Field operations
- Software search
- As well as site selection and launch ceremony
- Advertising (regional and national)
- Leasing or selling equipment
- In addition, training programs for you and your employees
- Financing options if you are short of initial capital
Compared to Chick-fil-A, Burger King, McDonald’s, KFC Franchise Profits and Costs
There is no doubt that the fast food industry is booming. But with a seemingly endless selection of options, it can be hard to know which franchise to invest in. However, you can make an informed decision by understanding the franchise’s profitability and costs.
| Restaurants | Initial startup costs | Average annual profit |
| Chick-fil-A | from $219,055 to $2,912,697 | $200,000+ |
| Burger King | from 316,100 to 2,660,600 USD | $200,000+ |
| McDonald’s | Up to $1,800,000 | $150,000+ |
| KFC | from $1,442,600 to $2,771,550 | $100,000+ |
| Metro | $116,200 and $262,850 | $30,000+ |
When it comes to franchise profitability, Burger King is a good option. McDonald’s also offers moderate profits with more flexibility through its global operations. However, if you’re looking for lower upfront costs but less profit potential than other fast food chains, then Subway is your best bet.
parting word
So, if you are considering going into the Subway business, you can make a decent amount of money from it. However, if you want to develop your own store or franchise, it all depends on how hardworking and diligent you are in delivering products.
When deciding to invest in an opening at Subway, don’t rush into anything too hastily. Make sure you learn everything about this business before jumping in for a lifetime!
