How Profitable is Subway Franchise? The Pros and Cons

TLDRSubway franchise owners can make an average profit of $100,000 per year. Subway is a scalable and profitable business with a 20% profit margin. It offers passive ownership and extensive marketing support. However, finding and managing employees can be a challenge, and franchise owners have limited control over the brand.

Key insights

💰Subway franchise owners can make an average profit of $100,000 per year, with a 20% profit margin.

📈Subway is a scalable business, and franchise owners can buy multiple franchises or existing ones.

👥Employee management can be challenging, and finding great employees at low wages can be a struggle.

💼Subway offers passive ownership, allowing franchise owners to manage the business from a distance.

⚖️Franchise owners have limited control over the brand and are dependent on the corporate management and marketing strategies.

Q&A

How much does it cost to start a Subway franchise?

Starting a Subway franchise can cost anywhere from $180,000 to $556,000, including a franchise fee of $10,000.

What are the financial requirements to start a Subway franchise?

To start a Subway franchise, you need a net worth of at least $150,000 with $100,000 of liquid capital.

Is Subway a profitable business?

Yes, Subway is a profitable business with an average profit margin of 20% and potential gross sales of around $500,000 per year.

Can I own multiple Subway franchises?

Yes, Subway allows franchise owners to own multiple franchises and expand their business.

Does Subway provide marketing support?

Yes, Subway provides extensive marketing support to its franchise owners, helping them promote their business and attract customers.

Timestamped Summary

01:45Starting a Subway franchise can cost anywhere from $180,000 to $556,000, including a franchise fee of $10,000.

03:13The average gross sales per Subway franchise is around $500,000 per year, with a 20% profit margin.

04:59Subway franchise offers passive ownership, allowing franchise owners to manage the business remotely.

06:11Employee management can be challenging, as Subway may not offer high wages, leading to potential staffing issues.

07:27Subway provides extensive marketing support to franchise owners, helping them promote their business effectively.