Sandwich and sub franchise costs

Sandwich shops are among the simpler restaurants to run: no fryer in many of them, a short make line, and a small in-line space in a strip center. That keeps the cost to open below burger or chicken chains. Delis and cafes that add soups, salads and a larger dining room cost more, and a few brands build freestanding restaurants with drive-thrus.

The category is dominated by Subway, with 18,773 US locations and a cost to open of $263K–$630K. Sandwich chains compete hard on location and price, so how close the next shop of the same brand sits matters as much as the brand.

What a sandwich franchise costs

Across the 80 brands on the sandwich list, the typical cost to open runs from $321K at the low end of each brand’s estimate to $683K at the high end. The low end is a small location in a cheaper market with little build-out; the high end a large site in an expensive one. Of these brands, 24 start at $250K or less and 0 at $100K or less.

Where the money goes

Each franchisor itemizes its cost to open. Grouping the lines for the 64 sandwich brands with a full breakdown shows what a typical budget pays for, as an average share of the high estimate, with the typical amount.

Leasehold improvements are the largest share: plumbing, flooring, a counter and the dining area in a leased space. Equipment is modest next to a grill or fryer kitchen, mostly refrigeration, slicers, ovens for bread and the point-of-sale system. Brands that bake bread in the shop or run a drive-thru sit at the top of the range.

Cheapest and most expensive sandwich franchises

The cheapest sandwich brands with at least 20 US locations, by the low end of the cost to open. Use the full range on each brand’s page for budgeting, not the low end alone.

Fees and royalties

The typical sandwich brand charges a franchise fee of $32K, a royalty of 6% of sales and 2% to a marketing fund. Another 2 brands charge a flat or tiered royalty instead of a single percentage. Royalties and marketing come off sales before rent, staff or loan payments, so on a $857K year they cost about $69K. The fees and royalties guide compares industries.

What sandwich franchise locations sell

Of the sandwich brands, 26 publish a comparable yearly sales figure per location. The typical one is $857K, close to the $797K typical across all brands.

Sales per shop vary several-fold between sandwich brands, and the highest sellers are not always the most expensive to open. Lunch is the main trade, so ask how a brand does at dinner and on catering, which can add a large share of sales with little extra space.

Which sandwich franchises are growing

Of the 41 sandwich brands with three years of figures, 22 added US locations from 2023 to 2025 and 13 shrank. The typical brand with 20 or more locations changed by +1.5%, against +3.8% across all franchises.

The brands that lost the most locations were Subway (1,803), Arby's (150) and Which Wich (97). The fastest-growing franchises ranking covers every industry.

Who runs a sandwich franchise

Of the sandwich brands whose agreements are clear, 57 let a trained manager run the business day to day and 22 require the owner to. Initial training typically runs 125 hours, against 71 across all brands. The typical brand loses 2.4% of its franchised locations a year to closures, terminations and non-renewals. On the SBA Franchise Directory are 36 of the 80 brands, so SBA-backed loans are available for them.

Best sandwich franchises to own

These sandwich brands pass all five tests on the best franchises to own ranking: they grew, lost no more owners than is typical, publish earnings figures, are on the SBA directory and had 100 or more US locations three years ago.

Before you buy a sandwich franchise

Ask each brand how close it will open another shop to yours and whether your territory is protected; the most crowded sub chains have lost owners to cannibalized sales. Food cost moves with meat and cheese prices, and national value deals are paid for by owners, so ask how promotions are chosen and what they did to shop margins.

A shrinking brand can still suit a well-placed shop, but find out why its owners left. Read each brand’s location table on its page and compare exits in the failure rates guide.