How much does a Subway franchise cost?

A Subway franchise requires a $15,000 franchise fee and total initial investment of $229,050–$522,250. Ongoing royalties are 8.0% plus 4.5% in advertising fees.

What is the royalty rate for Subway?

Subway charges 8.0% in royalties plus 4.5% in advertising fees — 12.5% combined. This is an ongoing monthly fee on gross revenue.

Food & Beverage

Subway Franchise Cost 2026

Total investment: $229,050–$522,250. Franchise fee: $15,000. Royalty: 8.0% + 4.5% ad fee. Based on FDD disclosure data.

$15,000

Franchise Fee

One-time brand license

$229,050–$522,250

Total Investment

Full startup range

8.0% + 4.5% ad

Royalty Rate

Monthly % of gross revenue

$430K

Est. Annual Revenue

Per unit estimate

Startup Cost Breakdown

Item 7 FDD disclosure categories for Subway

Real Estate & Buildout $125,000

Equipment & Fixtures $95,000

Initial Inventory $6,500

Initial Marketing $15,000

Working Capital Reserve $45,000

Qualification Requirements

Net Worth Required

$100,000

Liquid Capital Required

$100,000

vs. Food & Beverage Average

Investment vs. Category Avg

-70% vs. avg ($1237K)

Royalty vs. Category Avg

+2.8% vs. avg (5.2%)

Other Food & Beverage Franchises

Arby's

$618,000–$1,686,000 · 4.0% royalty

Baskin-Robbins

$97,000–$394,000 · 5.9% royalty

Buffalo Wild Wings

$1,621,000–$3,933,000 · 5.0% royalty

Burger King

$1,865,000–$3,270,000 · 4.5% royalty

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Data Sources

Investment ranges, royalty rates, and fee structures: Franchise Disclosure Documents (FDDs) filed with the U.S. Federal Trade Commission under the FTC Franchise Rule (16 C.F.R. Part 436). Revenue estimates: Item 19 Financial Performance Representations where available. Updated March 2026.