2026 FDD Issued Apr 30, 2026, amended Jun 16, 2026 Minnesota Commerce (CARDS)
Subway Franchise Cost (2026)
A Subway franchise costs an estimated $263,000 – $630,000 to open, according to Item 7 of the 2026 Franchise Disclosure Document (FDD). That total includes the $15,000 initial franchise fee (Item 5) and covers this format: Single Restaurant. Item 6 lists royalty: 8% of total gross sales, subject to the conditions below. This record has unresolved source-review issues and was published provisionally before independent verification was complete.
Read the source-review hold before using these figures.
- Total investment
- $263K – $630KItem 7 source and qualifications
- Franchise fee
- $15KItem 5 source and terms
- Royalty
- 8% of total gross salesItem 6 conditions and fee bases apply
- Brand fund
- 4.5% of total gross salesItem 6 conditions and fee bases apply
What stands out about Subway
Royalty and advertising percentages do not describe every technology obligation at Subway. Sub Club applies only to member loyalty transactions, and gift-card redemption and digital-order protection have their own bases. The POS hardware-as-a-service program is normally required, with limited waivers, while the digital-menu-board purchase and lease packages are alternatives. Adding every quoted technology price as a separate universal charge would count overlapping packages and conditional transactions.
The Additional Funds line in Item 7 excludes royalty, advertising, food and the owner's draw even though it includes payroll. It covers selected startup expenses, not the restaurant's entire working-capital need or a promise of breaking even. Lease-recording charges already sit inside miscellaneous expenses, while digital-menu-board purchases and extensive exterior work have stated exclusions; the printed estimate therefore requires reading the notes, not just the total.
Reopened restaurants are included in the opening count, and some exits in Item 20 include temporary closures. Reacquired outlets can be sold onward almost immediately, while transfers include changes to named owners and family succession. These definitions prevent the movement table from being read simply as newly built restaurants versus permanent shutdowns or as a count of sales to unrelated buyers.
The outlet-status totals do not reconcile for the reported years using opening-minus-exits arithmetic, and early-year reacquisition counts differ between the franchise and company tables. Printed values remain visible with source holds instead of guessed corrections. Item 19 discloses no system-wide historical earnings representation; actual records for a particular existing restaurant, if supplied, would not establish sales or income for the wider network.
What are the initial franchise fees and financial requirements for Subway?
Item 5 lists an initial franchise fee of $15,000 for Subway. Check the cited Item 5 for payment timing, discounts and format-specific terms.
Item 5 (PDF pages 29–35) lists $15,000 for a standard new restaurant, due when signing. The $7,500 reduced fee requires specified eligibility: qualifying existing/affiliate franchisees in substantial compliance, an honorably discharged U.S. veteran buying a first franchise, or qualifying non-traditional applicants. It is not available to every additional purchaser. The satellite fee is $5,000, waived for a satellite in the same facility as its base restaurant; a satellite operating for one year or less has a $1,000 fee. School-lunch and community-development locations have no initial fee. An ordinary transfer has no new initial fee but has transfer charges; purchasing a company/affiliate-owned restaurant can require an initial fee. For a reduced-fee applicant adding an individual who is not already a Subway franchisee, the add-on fee is $3,750 unless a parent, child or spouse waiver applies. Losing specified reduced-fee eligibility can require a $7,500 balance. Fees are generally non-refundable, subject to the FDD's location, training and other stated exceptions; do not assume a universal refund. A development fee replaces, rather than adds to, the individual initial fees for the scheduled restaurants. Item 5's school-lunch opening deadline is six months, whereas Item 17 describes two years; that source difference requires clarification.
Source: Subway 2026 FDD, Item 5, PDF p. 29.
This record lists no minimum net worth or liquid-capital requirement for Subway, because no sourced figure has been recorded. Ask the franchisor for its current financial qualifications in writing.
How much does it cost to open a Subway franchise? (Item 7)
Source: Subway 2026 FDD, Item 7, PDF p. 51.
Item 7 of Subway’s 2026 Franchise Disclosure Document estimates the total cost to open one single restaurant at $263,000 – $630,000. This total includes the initial franchise fee.
| Expense Category | Low ($) | High ($) |
|---|---|---|
| Initial Franchise Fee | $15,000 | $15,000 |
| Real Property | $3,000 | $12,000 |
| Leasehold Improvements | $75,000 | $250,000 |
| Equipment, Furniture and Décor | $110,000 | $210,000 |
| Optional Security System | $2,500 | $4,000 |
| Freight Charges | $8,000 | $15,000 |
| Exterior Signage | $5,000 | $12,000 |
| Opening Inventory | $7,500 | $15,000 |
| Insurance | $1,500 | $7,500 |
| Supplies & Smallwares | $5,000 | $9,000 |
| Training Expenses | $4,500 | $6,500 |
| Legal and Accounting | $1,000 | $6,000 |
| Grand Opening Advertising | $2,500 | $4,500 |
| Miscellaneous Expenses | $8,000 | $20,000 |
| Additional Funds - 3 months | $15,000 | $45,000 |
| Total | $263,000 | $630,000 |
Other formats
| Format | Total investment |
|---|---|
| Non-Traditional Location | $227,000 – $458,000 |
For comparison, the median high-end investment among 25 restaurants & food records without a source-review hold is $1,297,100.
Item 7 (PDF pages 51–56) is the estimate for developing a new single restaurant. Real Property represents an advance rent/security deposit, not a property purchase; deposits can be higher, and permitted real-estate purchases can substantially increase costs. Leasehold work depends on the site; a required grease trap can increase costs by $10,000–$15,000. Fresh Forward 2.0 is required for new restaurants/relocations, and the FDD is still assessing non-traditional and free-standing drive-thru costs, which can exceed the printed ranges. Optional security excludes monitoring. Equipment includes the initial menu-board translites but the base $57 monthly RTaaS estimate excludes tax, shipping and card/barcode readers. Digital-menu-board purchase/install costs of $8,000–$14,000 are excluded from the table because the FDD anticipates most applicable owners choosing the $155 monthly lease; these are alternatives, not both automatically charged. Item 7 insurance is $1,500–$7,500, unlike the $1,000–$6,000 annual Item 6 range; both printed estimates are retained for scope clarification. Training expenses include personal travel, lodging, meals and employee wages/benefits; Item 6 limits free initial attendance to two people. Miscellaneous Expenses include the $50 lease-recording administration and actual recording costs; do not add those twice. Note 7 describes possible impact fees of $5,000–$25,000 and Nevada architect costs of $1,500–$3,000; the impact-fee high exceeds the printed miscellaneous high, so this is not a guaranteed ceiling. Additional Funds estimates only certain startup expenses for three months, including payroll but excluding royalty, advertising, food and any owner draw. It is explicitly not the entire working capital needed or a break-even timetable and does not offset sales revenue. The grand-opening sale is required in specified opening/reopening/transfer cases; the suggested $2,000 spend is a recommendation, not an additional mandatory minimum. The printed total excludes extensive exterior renovations and key money. Existing restaurant acquisitions and co-brand/Marketwide menu additions have different costs. The cover calls the development-program totals per restaurant, whereas the text preceding the PDF page 56 table describes the first restaurant plus the development fee; no all-project total is inferred from that inconsistent scope. That table lists $246,123–$604,245, or $206,635–$471,245 non-traditional, and $22,500–$82,500 development fees for two to ten restaurants. These separate-program totals are not mixed into the standard single-restaurant table, and development fees replace the scheduled individual initial fees. Printed line sums are $263,500–$631,500 versus the printed $263,000–$630,000 total, differences of $500 and $1,500. These source values remain unchanged even though the differences are below the validator's tolerance.
What ongoing royalties and fees does Subway charge? (Item 6)
Source: Subway 2026 FDD, Item 6, PDF p. 36.
Item 6 of Subway’s 2026 FDD lists the charges below. Recurring charges and charges triggered by a transfer, renewal or other event have different conditions. Read each fee’s basis and notes before comparing rates.
How to read an Item 6 fee table.
| Fee Type | Amount / Rate | Payment Frequency | Notes & Source |
|---|---|---|---|
| Royalty | 8% of total gross sales | Every period | Weekly royalty, the percentage of sales paid to the franchisor. Gross sales exclude collected sales tax. The standard rate is 8%; Item 6 Note 1 allows 6.5%–8% for specified captive travel locations and 7.5%–8% for eligible multi-unit development agreements. A portion allocated to a Business Developer is part of this royalty, not an extra charge. (Item 6, PDF p. 36) |
| Advertising | 4.5% of total gross sales | Every period | Weekly standard advertising contribution is 4.5%. Item 6 Notes 1–2 allow 0.5%–2% for specified non-traditional/satellite or other qualifying arrangements, and 2%–3.5% for eligible multi-unit development agreements. Legacy agreements can have owner-approved increases under their own provisions; a new current agreement fixes the standard 4.5% rate and is not bound by that legacy voting provision. Item 11 (PDF page 70) recommends, but does not require, an additional 2.5% for local advertising. (Item 6, PDF p. 36) |
| Audit | Varies | When it applies | Conditional audit obligation. An under-reporting difference over 2% can require payment of the full overdue royalties, advertising and other amounts, audit expenses and applicable interest/late fees. Item 6 Note 3 also addresses missing records, control sheets and a stated employee-theft exception; the audit charge is not paid every period. (Item 6, PDF p. 36) |
| Fees for Unpaid Balances | Varies | When it applies | Annual interest 12% and potential annual late fee 10%, each capped by law, once over a week late; $50 for bank changes without notice, $20 bounced check/draft, plus collection and lawyers' costs. (Item 6, PDF p. 36) |
| Renewal Fee | Varies | When it applies | 25% of the then-current standard or satellite initial fee, currently $3,750 or $1,250 respectively; short-term satellite renewal $1,000. Item 5 (PDF page 32) states no renewal fee for school-lunch locations. Renewal requires the applicable agreement conditions, not payment alone. (Item 6, PDF p. 36) |
| Additional Term | $187.50 | When it applies | $187.50 plus tax for each approved additional full year, up to ten additional years. This is an extension payment, not a yearly recurring fee. Eligibility concerns existing agreements within ten years of expiration and specified transfers with less than ten years remaining; current agreement/rider requirements apply. (Item 6, PDF p. 36) |
| Transfer | Varies | When it applies | Standard transfer charge is 50% of the then-current initial fee, currently $7,500; a satellite transfer adds $3,000, or $1,000 for a short-term satellite. Item 6 Notes 4–5 (PDF pages 44–45) describe conditional reductions, including $3,200 for specified standard transfers, $200 for death/disability/divorce and other reduced cases; these are not universal transfer prices. Refund eligibility depends on cancellation timing, training, consent and completion, with possible past-due offsets. Reactivation and registration/legal costs are separate conditional charges. (Item 6, PDF p. 37) |
| Location Rent/License Fee | $1,000 – $6,000 per month | When it applies | The FDD estimates typical monthly rent/license payments of $1,000–$6,000, not a guaranteed contractual range. The actual lease, deposit, advance fee, percentage rent and site obligations govern. Item 7 Note 2 (PDF page 52) describes the rent/deposit separately from buying real estate. Item 10 (PDF pages 66–67) describes possible lease administration, default, legal and holdover costs; permitted holdover rent is 200% of the rent immediately before expiration. (Item 6, PDF p. 37) |
| Equipment Purchase and Freight Charges | Varies | When it applies | Required equipment from designated suppliers plus freight, tax and other costs; order pricing can include a freight/tax buffer. This is not an annual charge. Item 7 carries startup equipment and freight estimates, so those costs must not be added twice. (Item 6, PDF p. 37) |
| Insurance | $1,000 – $6,000 per year | Every period | Item 6 estimates $1,000–$6,000 per year for required insurance. Note 7 does not include employment-practices liability, health and other insurance. Item 7 separately prints a $1,500–$7,500 startup estimate; both source ranges are retained, not treated as identical coverage or changed to agree. Requirements and approved brokers are described on PDF pages 53–54. (Item 6, PDF p. 37) |
| Indemnification | Varies | When it applies | All liability, damages and costs, including lawyers' fees, when incurred. (Item 6, PDF p. 37) |
| Noncompete Violation | Varies | When it applies | $15,000 for each competing business plus 8% of its gross sales, excluding collected state/local sales tax. (Item 6, PDF p. 37) |
| Confidentiality Violation | Varies | When it applies | Franchisor's damages upon violation. (Item 6, PDF p. 38) |
| Trademark Violation | Varies | When it applies | $250 per day of trademark violation. The schema has no daily interval, so this remains a variable obligation described here rather than a $250 charge per event. (Item 6, PDF p. 38) |
| Limited Time Offering and Auto Shipment | Varies | When it applies | Required limited-time products and auto-shipped ingredients/supplies have product-dependent costs, currently paid to IPC; participation can be imposed under the FDD. This is not a uniform periodic charge. (Item 6, PDF p. 38) |
| Dispute Resolution | Varies | When it applies | Normally half the arbitration fee. Withholding money or breaching specified dispute provisions can require the full fee and additional lawyer, travel and other expenses. Improper forum/naming and sublease-enforcement costs also depend on the event; see Item 6 Note 12 on PDF page 47. (Item 6, PDF p. 38) |
| Co-Brand Continuing Fee | 0% – 8% of co-brand concept gross sales | When it applies | Only a co-brand arrangement, as defined by that agreement. (Item 6, PDF p. 38) |
| Fees Charged by Co-Brand Franchisor | Varies | When it applies | Third-party co-brand rates; franchisor may act as collection agent. (Item 6, PDF p. 38) |
| Optional Restaurant Listing Service | $100 | When it applies | Each six-month listing period under Help Sell Program; optional and may be waived. (Item 6, PDF p. 38) |
| Restaurant Technology Fee | $75 per month | Every period | Approximately $75 monthly; Item 6 states increases up to 10% annually. Item 11 (PDF page 73) describes this as covering SubwayPOS and other restaurant technology. A separate Digital Technology Fee is reserved for possible future imposition, with no current amount disclosed; it is not added as an existing fixed charge. (Item 6, PDF p. 38) |
| Ongoing Fees for P400 Payment Terminal (Adyen) | Varies | When it applies | Mixed monthly and transaction charges, not a uniform all-sales percentage: authorization $0.005, capture $0.005, refund $0.01; network/interchange typically $0.22 per transaction to 2.4% plus $0.10 in the Item 6 continuation (PDF page 39); chargeback $1.50 and terminal software $2.30 monthly. Item 11 on PDF page 74 instead prints plus $0.01 for the network/interchange high case. That source difference is retained for clarification, not silently reconciled. Subject to changes and applicable waivers; both terminals are required until the stated notice. (Item 6, PDF p. 38) |
| Ongoing Fees for Ingenico Payment Terminal (FreedomPay) | Varies | When it applies | Acquirer $0–$0.10 per transaction; network/interchange typically $0.22 per transaction to 2.4% of the total; Ingenico lease $10 monthly plus switching $10 monthly. These are distinct components, not a single all-sales rate. Both terminals are required until notice otherwise, subject to applicable waivers. The lease is the same Ingenico lease described in Item 5, not an additional duplicate lease charge. (Item 6, PDF p. 39) |
| Subway Gift Card Fees | Varies | When it applies | Required gift-card program, with a mixed initial/supply/transaction basis: approximately $60–$140 initial inventory/envelopes/display; redemption 2.5% of the transaction where a gift card is redeemed; supplies $0.10 per card, $0.06 per envelope and $20 per display, plus shipping. Certain non-traditional sites also need a $320 SVS terminal. These are not uniform charges on every sale or every period. (Item 6, PDF p. 40) |
| SVS Monthly Maintenance Fee | $2.50 per month | When it applies | $2.50 monthly, currently only for non-traditional restaurants using the specified SVS arrangement. Includes the software license fee; this repeats the same maintenance obligation described in Item 5, not a second fee. (Item 6, PDF p. 40) |
| Sub Club Program | 1.9% of gross sales in transactions made by Sub Club members | When it applies | Mandatory program participation does not make this a fee on every sale. Currently 1.9% of gross sales in member loyalty/reward transactions only. The Item 6 table permits increases up to 10% annually and incidental supplies. Note 15 (PDF page 49) describes reimbursement of 30.9% of the cash value of qualifying redeemed rewards and annual review of fees/reimbursement rates; no assumed net reimbursement is deducted from the fee. (Item 6, PDF p. 40) |
| POS System Hardware-as-a-Service Fees | $57 per month | When it applies | Normally required POS hardware-as-a-service enrollment with HP, not an optional alternative to buying. Approximately $57 monthly for the base RTaaS package, excluding tax and shipping. Limited case-by-case POS waivers can apply to certain formats. The base excludes the card/barcode readers; extra hardware, transition costs and future packages can cost more. See Item 6 Note 19 (PDF page 50), Item 7 Note 4 (PDF page 53) and Item 11 (PDF pages 71–72). (Item 6, PDF p. 41) |
| Digital Menu Board Hardware-as-a-Service Fee | $155 per month | When it applies | Optional digital-menu-board hardware/service package at $155 monthly, alternative to the CapEx purchase option. Do not add both alternatives for the same boards. (Item 6, PDF p. 41) |
| Digital Menu Board CapEx Option | Varies | When it applies | Alternative purchase option or option for those not qualifying for credit: four screens $8,200, three $7,650 or two $7,150 per restaurant, each with $39 monthly. Do not add this to the $155 monthly hardware-as-a-service alternative. Item 7 Note 4 (PDF page 53) gives a separate $8,000–$14,000 purchase/install estimate excluded from the startup table; configuration/package scopes are not treated as identical. (Item 6, PDF p. 41) |
| Kount Fraud Protection Fee | Varies | When it applies | Required Kount protection is currently $0.0068 per digital transaction, billed monthly and subject to vendor increases. Billing monthly does not make it a fixed monthly charge or a charge on every restaurant sale. (Item 6, PDF p. 41) |
| Other Technology and Digital Initiatives | Varies | When it applies | Item 6 prints approximately $90–$100 monthly and $9,300–$15,750 one-time. Note 15 (PDF pages 49–50) describes components, including a wireless router at $15–$25 monthly or an approximately $600–$750 purchase alternative, $75 monthly guest internet, digital boards at $8,000–$14,000, and tablet/label-printer/mobile-management costs of $700–$1,000. These overlapping component and package estimates are not added as independent charges for the same equipment. Other initiatives have no estimated price yet. (Item 6, PDF p. 42) |
| Restaurant Design Charge | Varies | When it applies | $1,000 for original plans, including one revision for a remodel or two for new/relocated restaurants; $250 per additional revision. Original fee can be waived if the remodel finishes within six months or new/relocated work within twelve months from the last floorplan; additional revision fees are not waived. (Item 6, PDF p. 42) |
| Taxes and Other Fees | Varies | When it applies | Actual sales tax or other applicable tax when fees are due. (Item 6, PDF p. 42) |
| ServSafe Certification | $50 | When it applies | Every two years on application/renewal; currently optional, potentially required in future. (Item 6, PDF p. 42) |
| Training Fee and Costs | Varies | When it applies | No training fee for the first two persons; $1,500 per additional attendee. Required employee/manager online courses also have owner-paid costs. Item 7 Note 6 (PDF page 54) and Item 11 (PDF pages 76–78) require travel, lodging, meals and employee expenses; no blanket free-training or owner-compensation assumption. (Item 6, PDF p. 43) |
| Catering | Varies | When it applies | Basic catering has no program fee. Participating online orders have approximately 5% ezOrdering or 13% ezCater Marketplace commission plus approximately 2.75% card processing. Note 18 (PDF page 50) gives the inclusive amounts as approximately 7.75% or 15.75%; those inclusive rates are not additional fees on top of the components. (Item 6, PDF p. 43) |
| Restaurant Excellence Visits Revisit Fee | $144.91 | When it applies | Charged only after a failed Restaurant Excellence Visit, for each revisit until a passing score; regular periodic visits have no fee. Subject to 3% annual increases. The FDD states $149.26 effective January 1, 2027; that future amount is not automatically applied here. (Item 6, PDF p. 43) |
| Legacy Support Fee | $200 per month | When it applies | Only months of specified technology noncompliance. (Item 6, PDF p. 43) |
| Supplemental Item 5: Additional Individual Fee | $3,750 | When it applies | For a reduced-fee applicant adding an individual who is not already a Subway franchisee, $3,750 is payable in addition to the reduced fee, subject to the parent, child or spouse waiver. This is not a fee for every initial signatory or every ownership change. (Item 6, PDF p. 30) |
| Supplemental Item 5: Reduced-Fee Eligibility Balance | $7,500 | When it applies | The specified reduced-fee franchise must satisfy eligibility through opening; loss of eligibility can require the remaining $7,500 balance. This is a balance of the standard fee, not a second initial franchise fee. (Item 6, PDF p. 30) |
| Supplemental Item 5: Opening Extension | $1,000 | When it applies | If approved, a single additional year to open can require $1,000 and execution of a replacement agreement. Format-specific riders and deadlines differ; not every format permits an extension. (Item 6, PDF p. 32) |
| Supplemental Item 5: Lease Recording Administration | $50 | When it applies | $50 non-refundable lease-recording administrative fee, plus actual additional recording costs. The $50 and recording costs are already included in Item 7 Miscellaneous Expenses (PDF pages 52 and 54); do not add them again to the startup total. (Item 6, PDF p. 32) |
| Supplemental Item 5: Additional Lease Recording Costs | Varies | When it applies | Estimated $50–$2,500 in additional lease-recording costs, depending on the site. Included in Item 7 Miscellaneous Expenses under Notes 2 and 7; not an additional independent startup total. (Item 6, PDF p. 32) |
| Supplemental Item 5: Training Cancellation | $100 | When it applies | $100 non-refundable fee if scheduled training is missed or registration is cancelled with less than ten business days' notice. (Item 6, PDF p. 33) |
| Supplemental Item 5: P400 Payment Terminal Purchase | $237.70 | When it applies | Current outright P400 price $237.70, plus the separate kit. Required applicable payment equipment is subject to specified waivers/transition notice; this is not a perpetual monthly purchase charge. If an existing franchise location is acquired, Item 5 says the P400 already at that location should be part of the purchase; do not automatically add another device purchase. (Item 6, PDF p. 33) |
| Supplemental Item 5: P400 Kit | $323.30 | When it applies | $323.30 current kit cost, separate from the P400 device price. See Item 7 Note 4 (PDF page 53) for the base RTaaS exclusions. (Item 6, PDF p. 33) |
| Supplemental Item 6 Note 5: Transfer Reactivation | Varies | When it applies | Conditional reactivation fee $1,500 for a restaurant or $750 for a satellite, with credit for an unrefunded transfer fee as described in the note. Do not add both without applying the stated credit. (Item 6, PDF p. 45) |
| Supplemental Item 6 Note 5: Transfer Preparation and Registration | Varies | When it applies | Conditional tax-clearance, preparation/registration, attorney and permit-cancellation costs. Actual applicable expenses, not a uniform periodic or automatic charge. (Item 6, PDF p. 45) |
| Supplemental Item 6 Note 14: Future Digital Technology Fee | Varies | When it applies | Reserved right to impose a separate Digital Technology Fee in the future; no current amount disclosed. This is a possible future obligation, not a currently priced fee. (Item 6, PDF p. 47) |
| Supplemental Item 6 Notes 14–15: POS Support and Broadband | Varies | When it applies | Required designated support software unless a waiver is granted; affiliate support can cost extra and alternative support/updates can cost more after a waiver. Required approved high-speed broadband has no uniform price stated. These are not presumed free, and overlapping router/guest-internet estimates remain in the existing technology-initiatives row. (Item 6, PDF p. 48) |
| Supplemental Item 6 Note 15: P400 Non-Return | $150 | When it applies | Currently $150 if a replacement P400 terminal is not returned within the specified period, currently twenty-five days; a conditional vendor charge. (Item 6, PDF p. 48) |
| Supplemental Item 6 Note 15: SVS Non-Return | Varies | When it applies | Conditional shipping, installation and file-building costs if a replacement SVS terminal is not returned within the specified period, currently thirty days; no uniform amount stated. (Item 6, PDF p. 48) |
| Supplemental Item 7 Note 4: Barcode Reader | $170 – $180 | When it applies | $170 current barcode reader price, or $180 for a drive-thru. The base $57 monthly RTaaS estimate excludes this reader; do not treat it as included in that lease. (Item 6, PDF p. 53) |
| Supplemental Item 10: Commercial Loan Guarantee | Varies | When it applies | One-time 1% of the loan amount only if the franchisor guarantees a third-party commercial loan. It is not a fee on sales and cannot use per-sale percentage modeling. (Item 6, PDF p. 68) |
| Supplemental Item 5: Menu-Board Translites and Operational Items | Varies | When it applies | Required initial menu-board translites and specified replacement/operational items from designated suppliers. The table states $500–$750 for four to six translites, while its remarks estimate $125 and under $600 for specified other items. These different scopes are retained for clarification. Item 7 Note 4 includes initial translites in equipment; do not add them again. Digital-board lease/purchase alternatives are already separate rows. (Item 6, PDF p. 33) |
| Supplemental Item 5: Company/Affiliate Restaurant Purchase | Varies | When it applies | If buying an existing company/affiliate-owned restaurant, the purchase price varies and the applicable initial franchise fee is also due. This acquisition price is not the Item 7 new-restaurant estimate and is not a performance or income figure. (Item 6, PDF p. 33) |
| Supplemental Item 10: Loan Default and Collection | Varies | When it applies | Only where applicable financing is used: default can accelerate the balance and require collection/lawyer costs, described as 15% of the unpaid loan balance. The note must be paid in full on transfer and may be prepaid without penalty. This is not a 15% fee on restaurant sales. (Item 6, PDF p. 67) |
| Supplemental Item 10: Conditional Lease and Alteration Costs | Varies | When it applies | Lease/default costs depend on the agreement, including possible late fees, repairs, interest and legal expenses. Alterations over $20,000 may require an owner-funded surety bond equal to the estimated alteration cost. Neither a fixed bond premium nor a universal remodeling budget is stated. Holdover rent is described in the existing rent row, not duplicated here. (Item 6, PDF p. 67) |
Explore annual fees and payback assumptions
This fee schedule cannot be reduced to the calculator’s simple sales-based formula. Enter your own assumptions and check them against the Item 6 terms.
Subway startup investment and modeled fees over 10 years
A source check placed this record on review hold. Automatic fee estimates are withheld until the outstanding issues are resolved. The standard royalty and advertising rates have eligibility exceptions. Payment processing, gift-card redemptions, Sub Club member sales and digital transactions use different bases, and the POS lease is normally required while digital-menu-board lease/purchase options are alternatives. Conditional, mixed-basis and possible future costs are shown, not turned into uniform all-sales or fixed-period charges. The Item 6 payment-processing high-case add-on differs from Item 11 and requires clarification. The simplified model is not a complete operating-cost budget. See the fee amounts and definitions in Item 6 above. Open the calculator with your own assumptions.
Item 20: Subway franchised outlet history
Source: Subway 2026 FDD, Item 20, PDF p. 102.
Item 20 Table 3 reports 18,773 franchised outlets at the end of 2025. The company-owned table reports a further 0 outlets.
| Year | Franchised at Start | Opened | Reported Exits | At End | Franchise Exit Rate (%) |
|---|---|---|---|---|---|
| 2023 | 20,576 | 455 | 853 | 20,133 | — |
| 2024 | 20,133 | 453 | 1,005 | 19,502 | — |
| 2025 | 19,502 | 499 | 1,224 | 18,773 | — |
Calculated outlet totals, net growth and exit rates are withheld because this record has not cleared the current Item 20 source checks. The table retains the outlet counts printed in Item 20. Read the unresolved source issues.
Reported exits include terminations, non-renewals, franchisor reacquisitions and other cessations. A reacquired outlet may continue operating. How we calculate the exit rate. How to read the Item 20 outlet tables.
1,307 units changed owners in 2025.
Table 3 totals on PDF page 102 include the listed U.S. states and territories. The start-plus-openings-minus-exits calculation yields 20,178, 19,581 and 18,777 for 2023–2025; the printed ends are 20,133, 19,502 and 18,773, differences of 45, 79 and 4. Printed figures are retained pending clarification. Openings include previously temporarily closed restaurants that reopened; approximately 56% of 2025 openings were reopens. Terminations and ceased-operations categories include temporary closures, not only permanent shutdowns. Reacquisitions can be followed by resale within one or two days. Company-end zeros come from Table 4 on PDF page 107, not a missing-data assumption. Its reacquisitions are 79, 139 and 148 versus Table 3's 98, 90 and 148; the first two years differ. Transfers of 1,764, 1,416 and 1,307 come from Table 2 on PDF page 98 and count only the last transfer of a restaurant within a year. They include additions/deletions of owners, divorce, death/succession and specified Business Developer transactions, not new restaurants.
How much do Subway franchise owners make? (Item 19)
Source: Subway 2026 FDD, Item 19, PDF p. 93.
Subway’s 2026 FDD has no Item 19 financial performance representation, so it gives no official sales, profit or owner-pay figures. Treat any earnings claim you hear from a salesperson with caution, and ask current owners (their contacts are listed in Item 20).
Item 19 (PDF page 93) discloses no historical or prospective financial performance representation and no average/median sales or owner-income figure. For a purchase of an existing outlet, the franchisor may provide that outlet's actual records; this exception is not a system-wide earnings disclosure.
Payback calculator (enter your own assumptions) Check any inputs against this record’s Item 7 startup costs and Item 6 fee rules.
How long is the Subway franchise agreement term?
Source: Subway 2026 FDD, Item 17, PDF p. 85.
The standard Subway franchise agreement runs 20 years, with renewal terms of 20 years.
Standard initial term is twenty years, with a conditional additional twenty-year renewal (Item 17, PDF pages 85–86). A transferred restaurant normally has the existing agreement's remaining term. School-lunch terms and renewals are five years; satellite terms follow the base restaurant and applicable lease, while short-term satellite terms are one year or earlier base termination, with a conditional mutual one-year renewal and at least sixty days' notice. Standard renewal requires compliance, possession of premises, written notice twelve to eighteen months before expiration, monetary obligations satisfied, current agreement and renewal fee, qualifications/training, renewal addendum and a general release. Opening and location-approval deadlines vary by rider. Item 5's six-month school-lunch opening deadline differs from Item 17's two-year statement. Dual-location-test refund descriptions also differ between Item 5 and Item 17; applicable agreement/rider terms require review rather than assuming a universal deadline or refund.
How long does it take to open a Subway franchise? (Item 11)
Source: Subway 2026 FDD, Item 11, PDF p. 69.
Item 11 of the 2026 FDD states the time from signing the franchise agreement to opening: 2 to 12 months, a period that includes location approval.
Compare Subway with other franchises
Head-to-head FDD cost, fee, and earnings comparisons:
Franchises with a similar investment range
These published records are selected by proximity to Subway’s $263,000 low-end Item 7 investment, starting with Restaurants & Food. Formats, fees and source qualifications differ; the figures are not interchangeable budgets:
- Wayback Burgers $256K – $859K Restaurants & Food
- Tropical Smoothie Cafe $276K – $771K Source review pending Provisional publication Restaurants & Food
- Ben & Jerry's $280K – $631K Restaurants & Food
- Papa Johns $281K – $890K Restaurants & Food
- Marco's Pizza $286K – $811K Restaurants & Food
- Domino's $231K – $744K Restaurants & Food
Compare other restaurants & food franchises
Frequently Asked Questions about Subway
This record has unresolved source-review issues and was published provisionally. Read the specific issues before using these answers.
- How much does a Subway franchise cost?
- Item 7 of the 2026 FDD estimates $263,000 – $630,000 for a new single restaurant, including the $15,000 standard initial fee. Real Property is an advance rent/security deposit, not a property purchase. The notes exclude extensive exterior renovations and key money, and the Additional Funds line excludes royalty, advertising, food and the owner's draw; it is not a complete operating-cash budget.
- How much do Subway owners make?
- The 2026 FDD does not disclose a historical financial performance representation in Item 19. It supplies no average or median unit sales or owner-income figure.
- What is the Subway royalty fee?
- The standard weekly royalty, the percentage of sales paid to the franchisor, is 8% of total gross sales of gross sales excluding collected sales tax, plus the 4.5% of total gross sales standard weekly advertising contribution. Item 6 describes reduced-rate eligibility for specified captive/non-traditional and multi-unit development arrangements. Transaction-based technology charges have separate bases; they are not all extra percentages of every sale.
Sources
Doctor's Associates LLC Franchise Disclosure Document, issued April 30, 2026, as amended June 16, 2026, as filed with the Minnesota Commerce (CARDS). Read the source FDD PDF. How to get this FDD yourself.
- Item 5: cited PDF p. 29
- Item 6: cited PDF p. 36
- Item 7: cited PDF p. 51
- Item 19: cited PDF p. 93
- Item 20: cited PDF p. 102
- Agreement term (Item 17): cited PDF p. 85
Page references for Subway use the PDF viewer's digital page count, not printed page headers. Some viewers download the document instead of opening the referenced page.
If the state document viewer does not open, use Minnesota Commerce's public filing instructions to look up the filing by franchisor name and document date.
Document & verification changelog
- October 29, 2026: Record updated.
- October 28, 2026: Source review hold recorded. Unresolved corrections are listed in this source section.
- October 9, 2026: Provisional publication approved per owner directive: Owner-directed provisional publication before independent source verification was complete.
- October 9, 2026: Initial cost profile published from the 2026 Franchise Disclosure Document (issued April 30, 2026).
- June 16, 2026: Amendment date recorded for the source FDD.