Subway

Subway

Subs, salads
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2022 Franchise 500 Rank
N/R Not ranked last year
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Initial investment
$140K - $342K
Units as of 2019
41,600 7.2% over 3 years

Company Overview

In 1965, 17-year-old Fred DeLuca and family friend Peter Buck opened Pete's Super Submarines in Bridgeport, Connecticut. With a loan from Buck for only $1,000, DeLuca hoped the tiny sandwich shop would earn enough to put him through college. After struggling through the first few years, the founders changed the company's name to Subway and began franchising in 1974. Subway has franchises throughout the United States and in 98 countries, with locations in traditional and nontraditional sites alike.

About Subway

Industry
Food
Related Categories
Sandwiches
Founded
1965
Parent Company
Doctor's Associates
Leadership
Trevor Haynes, CEO

Franchising Overview

Franchising Since
1974 (48 years)
# of employees at HQ
975
# of Units
41,600 (as of 2019)

Franchisor Information

Corporate Address
325 Sub Wy.
Milford, CT 06461

Information for Franchisees

Here’s what you need to know if you’re interested in opening a Subway franchise.

Financial Requirements & Ongoing Fees

Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.

Initial Franchise Fee
$15,000
Initial Investment
$140,050 - $342,400
Net Worth Requirement
$80,000 - $310,000
Cash Requirement
$30,000 - $90,000
Veteran Incentives
Franchise fee waived if opening on a military/government location; 50% off franchise fee if opening on non-government location but receiving government financing
Royalty Fee
8%
Ad Royalty Fee
4.5%
Term of Agreement
20 years
Is franchise term renewable?
Yes
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Financing Options

Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.

In-House Financing
Subway offers in-house financing to cover the following: franchise fee, equipment
Third Party Financing
Subway has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory

Training & Support Offered

Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.

On-The-Job Training
20 hours
Classroom Training
80 hours
Additional Training
Training available in Australia, China, Germany, India, Montreal, Canada & Miami
Ongoing Support
Newsletter
Meetings & Conventions
Toll-Free Line
Grand Opening
Online Support
Security & Safety Procedures
Lease Negotiation
Field Operations
Site Selection
Proprietary Software
Franchisee Intranet Platform
Marketing Support
Co-op Advertising
Ad Templates
National Media
Regional Advertising
Marketing Planning & Support
Social Media
SEO
Website Development
Email Marketing
Loyalty Program/App

Operations

Additional details about running this franchise.

Is absentee ownership allowed?
Yes
Can this franchise be run from home/mobile unit?
No
Can this franchise be run part time?
No
# of employees required to run
8-12
Are exclusive territories available?
No
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Franchise 500 Ranking History

Compare where Subway landed on this year’s Franchise 500 Ranking versus previous years.

Additional Rankings

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Disclaimer
The information on this page is not intended as an endorsement or recommendation of any particular franchise by Entrepreneur Media. Our franchise listings and rankings are solely research tools you can use to compare franchise operations. Entrepreneur stresses that you should always conduct your own independent investigation before investing in a franchise. That should include reviewing the franchisor's legal documents, consulting with an attorney and an accountant, and talking to former and current franchisees.
Updated: February 8th, 2021