Investing in the subway franchise, especially in India, presents an excellent opportunity. With 685 branches across India, it is the second-largest chain, after McDonald’s.
Many people in India are becoming health-conscious, so whenever they want to have food other than their home, they prefer Subway.
That is the reason franchises are becoming increasingly profitable. And if you’re looking to start Subway, then one question will come to your mind: What is the Subway franchise cost in India?
I will not only cover the cost, but I will also provide you with a comprehensive overview of every aspect of the Subway franchise business that you should be aware of.
I guarantee that by the end of the article, you will be in a position to decide whether this business is right for you or not.
First, understand why it is likable in India?
Why is the Subway Franchise Famous in India?
The Subway franchise has attracted numerous loyal customers and new investors over the years. Since 2001, the company has experienced remarkable growth, establishing itself as the top choice in India’s health-conscious niche.
However, other factors play a crucial role in its success in India.
1. Health-Conscious Menu
Subway’s niche is offering healthy snacks to people with their amazing, customized sandwiches that are fresh and low in fat. This becomes the favourite food for youth and working professionals.
Moreover, options like paneer tikka, veggie delight, and whole wheat bread are very likable among people who are concerned about their fitness goals.
2. Customizable Food
The main reason the subway is popular among Indians is that it offers customizable food options to suit everyone’s desires.
For example, if you belong to the Jain community, the Subway team will ensure that they exclude onion and garlic from your food. However, if you’re someone who wants spice in your food, then you just have to tell them, and they will prepare your food according to your terms.
That is the reason Subway is gaining huge success: customers feel comfortable, as if they are eating at home.
3. Vegetarian-Friendly brand
As you know, in India, most Indians prefer to eat vegetarian food, so considering this, Subway has opened a vegetarian-only brand in some places where vegetarians can eat without hesitation.
Moreover, apart from this, the vegetarian and non-vegetarian sections are entirely separate. And when it comes to religious festivals like Navratri, they ensure that only vegetarian food is served.
That strategy made them famous and preferred by people because they value the religion and its beliefs.
4. Small setup- Easy to open
Unlike other franchises, Subway doesn’t require large spaces to get started. Subway can be opened in an area of ( 200-300 square feet), such as:
- Malls
- Colleges
- Schools
- airports
I know business involves risks, but for a franchise business, having the freedom to open with a small space is a significant advantage. What else could you want?
5. High demand in urban areas
People are becoming aware and know the consequences of eating street food regularly. However, people living away from home, especially working professionals, often feel too lazy to prepare their food after coming from the office.
So, Subway is a healthier option than home-cooked food. Whenever they feel they don’t want to eat Roti-sabji, they prefer to order from Subway. Even when they have cravings at night, Subway is always the first option they choose.
Subway franchise cost in India 2025
The total investment in a Subway franchise depends on the location, property size, and store format.
Let’s break down for your understanding:
1. Initial franchise fees
You need to pay between Rs 6.5 lakhs and Rs 9 Lakhs, which is a one-time payment that includes brand licensing and training.
2. Set up costs
In set up costs, you are required to pay a variety of expenses such as:
- Store construction/renovation
You are required to pay between Rs 25 lakhs and Rs 35 lakhs for store construction or renovation.
- Equipment package
The equipment package includes sandwich equipment units, refrigerators, lighting, and printers for bills and POS systems. For all things to set up, you may need to pay between Rs 18 lakh and Rs 22 lakh.
- Signage and branding
Who will know what you have opened, so far, for signage and branding? It may cost you Rs 4 lakhs- Rs 6 lakhs.
- Initial inventory
You require some sort of inventory in the beginning, and it depends on you how much you need to keep. However, on average, it will cost you around Rs 3 lakhs – Rs 4 lakhs
- Legal and administrative fees
When you open a franchise, legal and administrative fees are an initial part of the setup. Those expenses include the franchise agreement, business entity registration, FSSAI license, Trade license, and local permission. The accumulated costs may range between Rs 2 lakhs to Rs 3 lakhs.
- Real estate security deposit
Real estate security deposit is an advance payment that you pay to your landlord. It’s a refundable fee until you breach the contract’s terms. It costs you between Rs 8 lakh – Rs 15 lakh, depending on the location.
- Working capital
You should maintain three months of working capital, which can cost you around Rs 8 lakhs to Rs 12 lakhs.
3. Total estimated investment
There are three types of formats available for store design and layout.
(i) Kiosk format
It is ideal for use in food courts, malls, metro stations, airports, and corporate parks. It will cost you around Rs 75 Lakhs – Rs 85 lakhs.
(ii) Traditional store format
If you have a medium-sized space, consider the Traditional store format. It is also best for restaurants and high-street outlets. The cost will be between Rs 90 lakhs – Rs 1.1 crore.
(iii) Premium location store
As its name suggests, it is best suited for premium spaces, such as airports, malls, and commercial zones. The cost will be between Rs 1.1 crore – Rs 1.3 crore.
4. Ongoing costs
Once you open the Subway franchise, you regularly have to pay:
- Royalty charges– 8% of gross sales, which you have to pay weekly
- Advertising fee– 4.5 % of gross sales, again, you have to pay weekly
- Rents, salaries, food supplies, and electricity bills, etc.
Note: These numbers can be changed. For more accurate information, you must visit Subway’s India franchise team directly.
Eligibility criteria
According to Orderz, to become eligible for a Subway franchise
- You must be 18 years of age
- You should have one crore of net worth
- Must have 25 lakhs of liquid assets
- If you have business experience, especially in the food industry or dining, then it’s beneficial for you.
- Must have no criminal record, as background verification will be conducted.
- Must be able to manage the outlet or hire a manager to oversee the workings.
Required documentation for a subway franchise in India
Many documents are required because, for a franchise business, you need to fulfill all the formalities from your end. The documents that you need to furnish:
- ID proof- PAN card, Aadhaar card, or Voter ID.
- Address proof- For address proof, you need to submit electricity bills, a Driving license, and a rent agreement.
- Your passport-sized photo
For financial purposes
- You need to present your 6-month bank statement
- Income tax returns from the last 3 years
- a net worth certificate from a CA stating that you hold one crore as net worth
- You need to prove that you have at least ₹ 25 lakhs in liquid funds.
For business documents
- GST registration
- FSSAI license
- Trade license
- Franchise agreement
Property documents
- Rent agreement if you purchase on rent, and NOC from the landlord ( if the property is on rent).
FAQs
How long is the franchise agreement valid?
Generally, the franchise agreement is valid for 20 years and is renewable at your discretion, with Subway also reviewing your sales performance.
How much profit can I expect from a subway outlet?
Covering all expenses, you will get a 15-20% margin. If all things are in good place, you will be able to receive profits after 2-3 years; until then, a break-even may be achieved.
Can I open multiple subway store outlets?
Yes, after successfully running one store, you can apply for another, although it will be given to you based on your performance and financial strength.
Conclusion
In conclusion, investing in a subway franchise will be rewarding if you are willing to meet financial criteria and other sorts of formalities. You need to understand that it will take 2-3 years to reach a break-even situation( no profit = no loss). If you have the patience to run your business and a vision to take it forward, then there’s no better franchise than Subway. You just have to approach with the right mindset, planning, and then execution.
With an already established name and high demand among health-conscious consumers, the Subway franchise offers substantial advantages for both beginners and investors.
So, if you have made up your mind, then all the best, and may your Subway outlet achieve immense success.
Happy reading!
