The Subway franchise requires a total investment of $263K – $630K and operates 19,502 units in the QSR category. This report analyzes the full Franchise Disclosure Document including unit economics, fee structure, growth trends, and risk indicators to help you evaluate the cost of investing in Subway.
Critical issues identified from FDD analysis that warrant serious consideration before investing.
Composite quality score based on growth, stability, efficiency, fees, transparency, and system size.
Estimated initial investment range as disclosed in the most recent FDD.
| Line Item | Low Estimate | High Estimate |
|---|---|---|
| Franchise Fee | $15,000 | $15,000 |
| Real Estate | $3,000 | $12,000 |
| Buildout | $75,000 | $250,000 |
| Equipment | $110,000 | $210,000 |
| Equipment | $2,500 | $4,000 |
| Other | $8,000 | $15,000 |
| Signage | $5,000 | $12,000 |
| Inventory | $7,500 | $15,000 |
| Insurance | $1,500 | $7,500 |
| Other | $5,000 | $9,000 |
| Training | $4,500 | $6,500 |
| Legal Accounting | $1,000 | $6,000 |
| Other | $2,500 | $4,500 |
| Other | $8,000 | $20,000 |
| Working Capital | $15,000 | $45,000 |
| Total | $263,000 | $630,000 |
| Franchise Fee | $22,500 | $82,500 |
| Total | $246,123 | $604,245 |
| Buildout | $0 | $0 |
| Equipment | $0 | $0 |
| Other | $50 | $50 |
| Inventory | $260 | $260 |
| Other | $100 | $100 |
| Other | $2,000 | $2,000 |
| Other | $100 | $100 |
| Working Capital | $100 | $100 |
| Total | $2,610 | $2,610 |
| Buildout | $200 | $200 |
| Equipment | $1,400 | $1,400 |
| Other | $200 | $200 |
| Inventory | $200 | $200 |
| Other | $100 | $100 |
| Other | $2,000 | $2,000 |
| Other | $100 | $100 |
| Working Capital | $1,000 | $1,000 |
| Total | $5,200 | $5,200 |
Financial Performance Representations not disclosed by this franchisor
Approximately 40% of franchisors choose not to include Item 19 financial performance data in their FDD. This does not necessarily indicate poor performance -- it simply means the franchisor has elected not to disclose this information.
Model your personal financial scenario by adjusting the assumptions below.
Automated risk indicators based on FDD data analysis.
Franchise unit trajectory based on FDD Item 20 data.
| Year | Start | Opened | Closed | Transferred | End | Closure Rate | Net Growth |
|---|---|---|---|---|---|---|---|
| 2022 | 21147 | +529 | -- | 1505 | 20576 | -- | -571 |
| 2023 | 20576 | +455 | -- | 1764 | 20133 | -- | -443 |
| 2024 | 20133 | +435 | -- | 1416 | 19502 | -- | -631 |
How Subway compares to peer brands in the QSR category.
Ratio = Investment midpoint ÷ median annual revenue. Lower is better. A 0.5x ratio means the initial investment equals half of one year's gross revenue. Does not account for operating costs, margins, or time value of money.
| Brand | Total Units | Investment Range | Median Revenue | Royalty | Inv/Rev Ratio |
|---|---|---|---|---|---|
| Subway | 19502 | $3K – $630K | No Item 19 | -- | -- |
| McDonald's | 12772 | $1.47M – $2.64M | No Item 19 | 5.0% | -- |
| Dunkin' | 8499 | $527K – $1.83M | $1.43M | -- | 0.8x |
| Domino's Pizza | 7043 | -- | $24K | 5.5% | -- |
| Burger King | 6701 | -- | No Item 19 | -- | -- |
| Wendy's | 5552 | $393K – $2.99M | $2.23M | 4.0% | 0.8x |
| Little Caesars | 3705 | $446K – $1.82M | No Item 19 | 6.0% | -- |
| KFC | 3558 | $135K – $3.77M | $1.27M | 5.0% | 1.5x |
| Papa John's | 3291 | $261K – $853K | No Item 19 | 5.0% | -- |
| Popeyes Louisiana Kitchen | 3177 | $505K – $3.92M | No Item 19 | 5.0% | -- |
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