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. buying an existing subway franchise
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 8% royalty on gross sales plus a 4
Subway is increasingly prioritizing multi-unit candidates who can manage 5 or more locations. Running a single store as an absentee owner is often financially difficult due to thin margins. Corporate standards typically require a remodel every 10
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 Potential for outdated equipment or décor.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