Subway

The current 2026 FDD estimates the total initial investment for a traditional Subway restaurant at approximately $263,000 to $630,000. The range covers costs such as the franchise fee, real estate, construction, equipment, inventory and initial working capital.

The final investment can vary considerably according to location and format. Subway offers traditional storefronts as well as endcap, freestanding, drive-thru and non-traditional formats. Smaller formats can provide opportunities to enter markets with less real estate and construction expenditure.

Subway’s current U.S. franchise requirements call for $100,000 in liquid assets and $150,000 in net worth per location. Subway states that higher financial requirements may apply depending on the territory.

Importantly, Subway is currently seeking multi-unit franchise candidates. The company says it is looking for qualified candidates who can acquire multiple restaurants or participate in buy-and-build opportunities. This means prospective franchisees should think beyond the capital required for one restaurant when developing their business plan.

The standard Subway royalty is 8% of gross sales, while the advertising contribution is 4.5% of gross sales. Combined, these fees equal 12.5% of gross sales before the franchisee’s other operating costs.

This relatively high percentage is an important factor for prospective franchisees to include in their financial projections. Food, labor, rent, insurance, utilities, maintenance and other expenses are paid separately, so gross sales should not be confused with owner income or profitability.

Subway’s 2026 FDD does not provide an Item 19 Financial Performance Representation, so there is no official Subway-published average annual sales or AUV figure that can be used as a benchmark.

For that reason, I recommend that prospective franchisees obtain actual sales information for the specific restaurant they are considering purchasing, where available, and speak with existing and former franchisees. Subway itself provides access to the FDD and franchisee information as part of its qualification process.

Subway historically had a reputation as one of the more accessible QSR franchises for first-time operators because of its relatively low investment and simple operating model. However, the current U.S. franchise strategy is more focused on experienced multi-unit operators.

Subway says it prefers candidates—or partners with an equity stake—who have restaurant, business or franchising experience and is currently seeking qualified candidates interested in multi-unit ownership. The company also actively promotes acquisition of existing portfolios and packages of multiple locations.