Subway Franchise

Global submarine sandwich chain with customizable fresh subs.

Food & Restaurant Investment: $229K–$524K Owner-Operator Source: FranchiseStack.ai

Key Investment Facts

✓ Data verified · 2026-07-02  ·  Confidence: 60%

[LAST UPDATED: Jul 2, 2026]  ·  [VERIFIED · FDD]

Initial Investment
$229K–$524K
[VERIFIED · FDD 2026]
Franchise Fee
$15K
Royalty Rate
8.00%
Avg Unit Revenue
$420K
[ESTIMATE]
Total Units
36,690
Annual Growth
+500 units/yr
Franchisee Satisfaction Score
55.0/100

About Subway

Global submarine sandwich chain with customizable fresh subs.

Training Program: 2 weeks of initial training included.

Tags: sandwiches, low-cost, global

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Investment Overview: Is Subway Worth It?

Opening a Subway franchise requires an initial investment in the range of $229K to $524K. The initial franchise fee is $15K, which grants you access to the brand, training, and operational systems. Ongoing royalty fees are 8.00% of gross revenue. Subway operates in the Food & Restaurant sector and typically requires owner-operator involvement.

As of the most recent disclosure, Subway has 36,690 total franchise units (36,690 franchised). Recent growth shows -3.50%, which signals steady market presence in the Food & Restaurant space. The reported failure rate is 8.00%. New franchisees receive 2 weeks of initial training to prepare for operations.

Franchisee satisfaction for Subway is rated 55 out of 100, which is considered moderate relative to other Food & Restaurant franchises. When evaluating this score, consider the specific market conditions and support structure that may influence owner experience. We recommend using our AI Financial Model tool to project personalized returns, and reviewing the full FDD analysis before making any investment decision.

Risk Assessment

Overall Risk
4/10 Moderate Risk

Key risk signals from FDD data. Higher score = lower risk. Verify in the franchise's current disclosure document.

📉
Franchisee Turnover (Item 20)
-3.5% — net unit decline
Shrinking
⚠️
Failure Rate
8%
Moderate
🗺️
Territory Protection
Territory terms not disclosed
Unknown
💸
Ongoing Fee Burden
8.0% of revenue (royalty)
Moderate
Data as of July 2026. Not investment advice — review current FDD before investing.

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Frequently Asked Questions About Subway

How much does it cost to open a Subway franchise?

The total initial investment for a Subway franchise ranges from $229K to $524K. This includes the franchise fee of $15K, plus buildout, equipment, inventory, and working capital. Ongoing royalty fees are 8.00% of gross revenue. Always request the current Franchise Disclosure Document for exact, up-to-date figures.

Is Subway a good franchise to buy in 2026?

Subway operates in the Food & Restaurant sector with 36,690 total units. Franchisee satisfaction is rated 55/100. Whether it's a good investment depends on your market, capital, and goals. We recommend using our AI Financial Model tool to project personalized returns before making a decision.

Can I run a Subway franchise as a semi-absentee owner?

Subway typically operates under a owner-operator model. Owner-operators are expected to be involved in daily management. This hands-on model usually offers more control over operations and customer experience but requires a greater time commitment.

What is the failure rate for Subway franchises?

The reported failure rate for Subway is 8.00%. Failure rates vary by market and operator experience. Always review Item 20 of the FDD, which discloses franchisee turnover, transfers, and terminations over the past three years.

How does Subway compare to other Food & Restaurant franchises?

Subway competes with other brands in the Food & Restaurant space. Key differentiators include investment level ($229K to $524K), franchisee satisfaction (55/100), and the owner-operator operating model. Use our franchise comparison tool to see side-by-side data against specific competitors.

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⚠️ Financial Disclaimer — Read Before Investing FDD financial data is sourced from each franchisor's Franchise Disclosure Document (FDD) Item 5, 6, and 7 filings. Historical performance data represents past results and is not a guarantee of future performance. FranchiseStack does not provide financial, legal, tax, or investment advice. All franchise investments carry risk. Item 19 earnings claims may not be reliable — the FTC warns that actual franchisee performance varies widely. Always verify all figures with the franchisor's official FDD and consult a qualified financial advisor and franchise attorney before signing any agreement.
This analysis was generated with AI assistance based on publicly filed FDD data and may contain errors. Consult a franchise attorney before signing any franchise agreement. Data last reviewed 2026-07-02.