Opening a restaurant is an exciting venture, but it’s essential to plan and budget accordingly. If you’re considering starting a Subway restaurant in the United States, knowing the costs involved can help you make informed decisions. Here, we’ll break down all the possible expenses involved in opening a Subway franchise, from initial investments to ongoing fees.
Initial Investment
The initial investment required to open a Subway restaurant in the USA can vary depending on several factors, such as location, size, and lease terms. On average, you can expect the costs to range between $150,050 and $328,700. This investment covers various aspects, including:
| Expense | Cost Range |
| Franchise Fee | $15,000 – $30,000 |
| Interior Decor | $50,000 – $100,000 |
| Equipment and Fixtures | $90,000 – $180,000 |
| Signage | $3,500 – $12,000 |
| Initial Inventory | $4,000 – $8,000 |
| Training | $3,000 – $8,000 |
| Real Estate and Leasehold Improvements | $0 – $150,000 |
Ongoing Fees
Once your Subway restaurant is up and running, you’ll be responsible for various ongoing fees, which include:
1. Royalty Fee
Subway requires franchisees to pay a royalty fee, which is a percentage of the restaurant’s gross sales. The current royalty fee stands at 8% of gross sales.
2. Advertising Fee
You’ll also need to contribute to the national advertising fund, which supports marketing initiatives to promote the Subway brand. The advertising fee is currently set at 4.5% of gross sales.
3. Additional Costs
Aside from the royalty and advertising fees, you’ll also need to consider additional expenses, such as rent, utilities, labor costs, and supplies. These costs can vary significantly depending on your location and the size of your operation.
Summary of Costs
To summarize, opening a Subway restaurant in the USA involves an initial investment ranging from $150,050 to $328,700. This investment covers expenses like franchise fees, interior decor, equipment, signage, initial inventory, and training. Additionally, ongoing fees include an 8% royalty fee and a 4.5% advertising fee, along with other operational costs.
It’s important to note that these figures are estimates, and actual costs can vary widely. To get a personalized budget for opening a Subway franchise in your desired location, it’s recommended to contact Subway directly. They can provide you with detailed information and answer any specific questions you may have.
Starting a Subway restaurant can be a rewarding business opportunity, allowing you to serve delicious sandwiches while benefiting from a well-established brand. By understanding the costs involved and conducting thorough research, you can embark on this exciting journey with confidence.
