Subway franchise
Subway is a made-to-order sandwich chain where customers build subs, wraps and salads along a counter. Restaurants are small and often sit in strip centers, gas stations and non-traditional sites, which keeps build-out costs low compared with most restaurant franchises. At the end of 2025 there were 18,773 Subway locations in the US, all franchised.
- Cost to open
- $263K–$630K
- Franchise fee
- $15,000
- Royalty
- 8%
- Locations, 2025
- 18,773−1,803 in 3 yrs
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Company snapshot
- Time to open
- 2 to 12 months after signing
- Agreement length
- 20 years
- Territory
- No exclusive territory
- Financing
- Some financing offered
From Doctor's Associates LLC’s 2026 filing.
How much a Subway franchise costs
Opening a traditional Subway restaurant costs an estimated $263,000 to $630,000. That covers the franchise fee and everything else needed to open, through the first months of working capital.
| Non-traditional location | $227,000 to $458,000 |
|---|
Source: Doctor's Associates LLC, 2026 filing, page 51
Subway franchise fee
The franchise fee is $15,000, for a first restaurant ($7,500 for additional restaurants and for qualifying U.S. veterans). You pay it when you sign the franchise agreement.
Source: Doctor's Associates LLC, 2026 filing, page 29
Royalty and ongoing fees
| Royalty | 8% of gross sales, paid weekly. |
|---|---|
| Brand or marketing fund | 4.5% of gross sales, paid weekly. |
Source: Doctor's Associates LLC, 2026 filing, page 36
Sales and earnings
No figures Subway does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.
Source: Doctor's Associates LLC, 2026 filing, page 93
Locations opened and closed
| Year | Franchised | Company-owned | Closed |
|---|---|---|---|
| 2023 | 20,133 (−443) | 0 | 853 |
| 2024 | 19,502 (−631) | 0 | 1,005 |
| 2025 | 18,773 (−729) | 0 | 1,224 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
Source: Doctor's Associates LLC, 2026 filing, page 94
How Subway compares
Of the 46 fast food franchises on this site, Subway is the 4th cheapest to open and the largest by number of locations.
| Measure | Subway | Typical fast food |
|---|---|---|
| Cost to open, low end | $263K | $701K |
| Royalty | 8% | 5% |
| Closed or left per year | 5.1% | 2% |
| Change in franchised locations, 3 yrs | −8.8% | +6.3% |
| Shares earnings figures | No | 39 of 46 |
Typical is the median across the 46 brands in fast food franchises.
Other fast food franchises
Subway franchise questions
How long does it take to open a Subway?
2 to 12 months after signing, according to Subway's 2026 filing. Finding a site, permits and build-out are what usually stretch it.
Does Subway help with financing?
Yes, in some cases. Subway may finance part of the cost, such as the franchise fee, for qualified buyers; terms are in its filing.
Do Subway franchisees get a protected territory?
No. Subway grants the right to run one location but no exclusive area, so another Subway can open nearby.
How long is a Subway franchise agreement?
The initial term is 20 years. Renewal is usually possible if you're in good standing, often for a fee and a remodel.
Is Subway growing or shrinking?
Over the last 3 years 1,407 franchised locations opened and 3,082 closed or left, a net change of −8.8%. About 5.1% of locations closed or left each year. That is above the 2% typical for fast food franchises.
How does Subway compare with other fast food franchises?
Of the 46 fast food franchises here, Subway is the 4th cheapest to open (low end $263K against a $701K median) and the largest by number of locations. Its 8% royalty is above the 5% median.
Does Subway say how much franchisees make?
No, Subway doesn't publish sales or profit figures for its locations, while 39 of the 46 fast food brands here do. Current and former owners are the best source.