If you’ve ever dreamed of running a restaurant with a name that nearly everyone on the planet recognizes, Subway is one of the biggest cards you can play. With 99% brand awareness, nearly 37,000 restaurants worldwide, and almost 60 years of history, this sandwich giant is still attracting investors who want a proven model with room to grow.
But here’s the real story: Subway isn’t pitching itself as just another sandwich shop. It’s marketing to investors who want flexible formats, lower upfront costs than many competitors, and the ability to scale fast with multi-unit packages. Whether it’s a 400-square-foot spot in an airport or a high-volume store on Main Street, Subway’s promise is simple operations and big brand power at a lower price point than most quick service restaurant (QSR) rivals.
Founded in 1965, Subway grew from a single sandwich counter in Connecticut to the largest sandwich brand in the world. It began franchising in 1974 and today operates under Doctor Associates LLC, with headquarters in Shelton, Connecticut.
The company’s core menu is built around customizable subs, wraps, salads, and now new “Fresh Forward” offerings that keep pace with health trends and consumer demand for digital convenience. Subway restaurants serve more than 5.5 million sandwiches per day, and about 25% of its footprint is in non-traditional spaces like airports, convenience stores, universities, and hospitals.
What sets it apart?
Modernization push: New designs, digital ordering, and menu innovation.
Yes, but Subway is clear about who it wants as franchisees. This isn’t pitched as a casual, side-hustle franchise.
Financial requirements (per location):
Experience:
Time to open:
Subway is open to both first-time operators and seasoned franchisees, but it leans toward growth-minded owners who can manage multiple stores and have the financial stability to handle build-outs and working capital.
Launching a Subway isn’t cheap, but compared to other global QSR brands, it falls on the lower end of the spectrum.
Estimated initial investment (2025 FDD):
Here’s where your money goes:
Ongoing fees:
While Subway has one of the lowest franchise fees in the QSR industry, its ongoing royalties (8% and 4.5% ad spend) are higher than average. That means your margins will be tighter, so controlling labor and lease costs becomes critical.
Here’s why Subway still attracts investors:
But the trade-off is that Subway’s royalties are steep, and margins can be thin. Success hinges on picking strong locations, managing costs tightly, and scaling beyond a single unit.
Subway does not grant exclusive territories. Each franchisee has rights only to their approved location.
That means you may face competition from other Subway stores nearby, depending on the market. This policy is one of the most debated aspects of the brand’s history, it allowed Subway to scale quickly but also contributed to oversaturation issues in the U.S.
Subway’s non-exclusive territory model gives it flexibility but puts pressure on owners to differentiate through service, convenience, and community ties.
Subway highlights a comprehensive support network:
Here’s the typical path to ownership:
The timeline is typically 4 to 12 months, depending on build type.
Opening a Subway may cost less upfront than many QSR rivals, but it’s still a $200K to potentially over $500K investment per store, plus high ongoing royalties. Whether you’re aiming for one location or a multi-unit package, access to the right funding makes all the difference.
With Swoop, you can compare SBA loans, commercial real estate financing, and working capital options — all in one place. We help you cut through the fine print and find lenders who understand franchise businesses like Subway.
Check available business loans today and take the first step toward building your Subway franchise portfolio.
Daire made it happen! There is no doubt that Swoop sped up the process and found lenders that worked to our time scale rather than the other way round
Joint owner, F45 Virginia
Swoop was actually very helpful in helping us get our initial fundraising in place. Swoop was able to connect us with investors, with grant financing options and debt financing options.
Founder, SingleKey
Pedja was amazing. Super supportive, understanding of our needs and wasn't pushy at all. We've been going back and forth with Swoop for over a year inquiring about different financing options and they were patient until we were ready!
F45 Multi-studio owner
Written by
Ashlyn is a personal finance writer with experience in business and consumer taxes, retirement, and financial services to name a few. She has been published in USA Today, Kiplinger and Investopedia.
Swoop promise
At Swoop we want to make it easy for SMEs to understand the sometimes overwhelming world of business finance and insurance. Our goal is simple – to distill complex topics, unravel jargon, offer transparent and impartial information, and empower businesses to make smart financial decisions with confidence.
Find out more about Swoop’s editorial principles by reading our editorial policy.
Our offices:
Disclaimer: Swoop Finance Ltd (Swoop) helps US firms access business finance, working directly with businesses and their trusted advisors. We are a credit broker and do not provide loans or other finance products ourselves. All finance and quotes are subject to status and income. Applicants must be aged 18 and over and terms and conditions apply. Guarantees and Indemnities may be required. Swoop can introduce applicants to a number of providers based on the applicants’ circumstances and creditworthiness. Swoop may receive a commission or finder’s fee for effecting such introductions. If you feel you have a complaint, please read our complaints section highlighted above and also contained within our terms and conditions.
How Swoop makes money: In order to provide services free of charge, Swoop generates revenue through commission from companies featured on our platform. The commission we receive does not impact the cost of the product, service, or policy, and your payments remain unaffected by our commission structure.
UK
IRE
AU
CA
US
ZA
yet? Register here!