8% royalty on gross sales plus a 4.5% advertising fee. Steps to Acquire a Resale
Request 3–5 years of tax returns and sales records. Scrutinize the lease agreement for remaining options and potential rent hikes.
High sales can be misleading if they are driven by price hikes rather than customer volume. Experienced owners suggest looking for stores with at least $400k in annual sales to ensure you aren't just working to pay the 12.5% combined royalty and advertising fees. buying an existing subway franchise
Start by filling out the Subway Franchise Interest Form to gain access to the Franchise Disclosure Document (FDD).
New owners must complete a comprehensive 3-week training program , which includes both virtual and in-person components. Pros and Cons of a Franchise Resale Cash Flow Immediate income from day one. High royalty "haircut" (12.5% total). Setup No need for construction or site permits. Potential for outdated equipment or décor. Risk Proven location with historical data. You may be buying someone else's declining performance. Market Established local brand awareness. Fierce competition from brands like Jersey Mike's. Frequently Asked Questions | Subway Franchise 8% royalty on gross sales plus a 4
You must be approved by the local DA, who manages the territory and oversees the transfer process.
While the purchase price for a resale is negotiated directly with the seller, you must still meet Subway's minimum financial benchmarks: $15,000. Liquid Capital: Minimum $100,000 in cash-on-hand. Net Worth: Minimum $150,000 total net worth. High sales can be misleading if they are
Corporate standards typically require a remodel every 10 years . When buying, check if a costly "Fresh Forward" update is overdue, as this can cost $50k or more and significantly impact your initial ROI. Estimated Costs & Requirements