Subway startup cost; Everything You Need To Know

How you ever wondered what the subway startup cost could be? In this post, I’ll answer the question and tell you everything else you need to know about opening a subway.

That’s not all; you’ll also discover:

The best way to proceed by purchasing an existing Subway franchise

What is the best way to launch a subway franchise?

Price and value control for Subway franchises

There are several Subway franchise opportunities to select.

So, if you want to start a subway franchise this year, this guide is for you.

What’s a subway?
Subway is a privately owned American organisation that owns a vast chain of fast-food restaurants mainly serving submarine burgers, salads, and pizzas.

It is also one of the least expensive big fast-food franchises.

How Much Does a Subway Franchise Cost?
If your Subway application offer is approved, you will be required to pay a franchise fee of $15,000 to use the Subway brand.

According to the firm, such startup costs may include building and machinery lease costs ranging from $105,800 to $393,600.

As opposed to a restaurant like McDonald’s, which needs as much as $2.2 million in opening costs alone, as well as a $45,000 franchise fee, we may conclude that Subway restaurants are much less expensive to open.

Subway restaurants often do not make as many sales as McDonald’s units.

A subway restaurant produces an average of $422,000 in profits per year, equivalent to $2.6 million for McDonald’s restaurants.

Subway also charges hefty recurring payments to its numerous restaurant franchises.

Subway restaurant franchisees are paid an annual royalty fee of 8% of gross revenue and a promotional fee of 4.5% of Subway sales reported by Franchise Direct.

This means that 12.5% of each restaurant franchise’s income is returned to Subway Corporate.

Source: https://recruitbros.com/subway-startup-cost-everything-you-need-to-know/