Subway Franchise FDD, Profits & Costs
Subway, founded in 1965 by Fred DeLuca and Dr. Peter Buck, started as “Pete’s Super Submarines” in Bridgeport, Connecticut. The brand gained popularity quickly and began franchising in 1974, leading to rapid expansion across the U.S. and internationally.
Headquartered in Milford, Connecticut, Subway now has over 37,000 locations in more than 100 countries. Subway is known for its customizable, freshly made sandwiches, wraps, salads, and bowls, emphasizing fresh ingredients and personalized meals.
The franchise offers a lower initial investment compared to many quick-service restaurants, making it accessible for new business owners.
Subway Franchise Initial Investment
How much does it cost to start a Subway franchise? It costs on average between $227,000 - $630,000 to start a Subway franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location, and whether the franchisee chooses to lease or purchase the property.
Subway offers 2 investment options:
| Type of Restaurant | Initial Investment Range |
|---|---|
| Single Restaurant | $263,000 to $630,000 |
| Non-Traditional Location | $227,000 to $458,000 |
The table below highlights the estimated startup costs for the Single Restaurant option.
For more information on the costs required to start a Subway franchise, refer to the Franchise Disclosure Document (Item 7).
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $15,000 |
| Real Property | $3,000 to $12,000 |
| Leasehold Improvements | $75,000 to $250,000 |
| Equipment, Furniture and Décor | $110,000 to $210,000 |
| Optional Security System | $2,500 to $4,000 |
| Freight Charges | $8,000 to $15,000 |
| Exterior Signage | $5,000 to $12,000 |
| Opening Inventory | $7,500 to $15,000 |
| Insurance | $1,500 to $7,500 |
| Supplies & Smallwares | $5,000 to $9,000 |
| Training Expenses | $4,500 to $6,500 |
| Legal and Accounting | $1,000 to $6,000 |
| Grand Opening Advertising | $2,500 to $4,500 |
| Miscellaneous Expenses | $8,000 to $20,000 |
| Additional Funds | $15,000 to $45,000 |
| Total Estimated Initial Investment | $263,000 to $630,000 |
Subway Franchise Disclosure Document
Frequently Asked Questions
What funding options are available for a Subway franchise?
Most franchise buyers in Subway’s investment range finance their unit through an SBA 7(a) loan, with some multi-unit operators using SBA 504 loans for real estate. Buyers with rollable retirement funds sometimes use a ROBS structure to reduce debt service. See SharpSheets’ financial model hub for funding guidance.
How long does it take to pay back a Subway franchise investment?
Payback periods for franchises in Subway’s category typically run 3-7 years, depending on investment level, location performance, and financing structure. Actual payback varies significantly by unit performance and debt service obligations.
Who owns Subway?
Subway is owned by Doctor’s Associates Inc. (DAI), a private company founded by Fred DeLuca and Peter Buck in 1965.
The company remains under the ownership of the DeLuca and Buck families. Unlike many other fast-food chains, Subway does not have any public shareholders, and its ownership has stayed with the founding families since its inception.
SharpSheets Editorial Team | sharpsheets.io | Last Updated: June 2026
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