One of the most popular searches on the internet is “how much to open a Subway franchise?” This article overviews the franchisor-provided estimates for the opening of one Subway restaurant.
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Kinds of Subway Franchise Types
Subway has two types of franchises: traditional and non-traditional.
Traditional locations are restaurants where the only purpose is the operation of a Subway restaurant. Non-traditional locations are housed within another business. Examples of non-traditional locations include: convenience stores, gasoline stations, highway rest stops, department stores, hospitals, parks, universities, schools, sports arenas, convention centers, airports, theme parks, national parks, bus and railroad terminals, military bases, business complexes, assisted living/nursing homes, and other similar locations.
How Much Does a Subway Franchise Cost?
The estimated financial range for setting up and operating a Subway restaurant for the first three months ranges between $199,135 and $536,745, depending on location type.
Based off of its years of experience, Subway provides the estimates of the typical initial investment range for both types. The data in the chart below comes from Subway's 2025 Franchise Disclosure Document (FDD). The estimated initial investment range shown covers from a non-traditional location size up to a traditional location size.
| Name of Fee | Low | High |
| Initial Franchise Fee | $15,000 | $15,000 |
| Real Property | $2,000 | $12,000 |
| Leasehold Improvements | $40,900 | $200,000 |
| Equipment, Furniture and Décor | $106,785 | $208,845 |
| Optional Security System (not including monitoring) | $2,450 | $3,550 |
| Freight Charges (varies by location) | $3,000 | $14,000 |
| Outside Signage | $1,600 | $8,000 |
| Opening Inventory | $4,400 | $6,050 |
| Insurance | $1,000 | $6,000 |
| Supplies | $500 | $1,300 |
| Training Expenses (including travel & lodging) | $2,500 | $4,500 |
| Legal and Accounting | $1,000 | $3,500 |
| Grand Opening Advertising | $2,000 | $4,000 |
| Miscellaneous Expenses (business licenses, utility deposits & small equipment) | $4,000 | $8,000 |
| Additional Funds – three months | $12,000 | $42,000 |
| ESTIMATED TOTAL | $199,135 | $536,745 |
Variations in final cost depend on area real estate costs, the size of restaurant being opened, renovations that need to be made, and additional factors such as the amount of traffic the restaurant gets in its opening months.
Like any similar business, Subway opening costs include acquiring real estate, renovation and/or construction costs, signage, professional fees (which can include license, accounting and lawyer fees), and more. However, the defining fee for buying a franchise is the franchise fee.
What is the Subway Franchise Fee?
The standard Subway franchise fee is $15,000. However, exceptions do apply.
Subway currently offers a discount of the franchise fee for qualified United States Armed Forces Veterans, qualified Subway restaurant franchisees of affiliate companies, those purchasing a franchise under the School Lunch or Community Development Programs, or those purchasing a franchise for a qualified non-traditional location.
The franchise fee is basically a cover charge for entry into a franchise system, and for taking advantage of the expertise the franchisor has acquired. It typically covers the right to use the franchisor’s system (including trademarks and operating system), and services the franchisor provides to franchisees like help finding a location, training materials, etc. For Subway, and most franchises, the franchise fee is due in full when the franchise agreement is signed.
What Are the Other Monetary Requirements to Open a Subway Franchise?
Beyond access to the opening costs, Subway also has a liquid cash requirement of at least $100,000 per location. The requirement is the amount of money a franchisor suggests a franchisee have in savings and able to access quickly in case of emergencies and setbacks when opening the business. It also accounts for regular living expenses until the franchise unit begins turning a profit large enough for the franchisee to garner an adequate take-home wage.
The company also has a net worth requirement of $150,000.
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For more details on the costs of a Subway franchise, please see our Subway FDD page. To get franchise investment details on other related franchise opportunities, click here.