FREQUENTLY ASKED QUESTIONS

Expressing your interest is only the beginning.  If you are eligible, our team will contact you to discuss available opportunities.

While previous experience in running your own business or in hospitality is beneficial, Subway® provides hands-on support for operations and training required for you to run & grow your restaurant successfully.

This outline is not a complete guide to franchising; it is a starting point. It should be combined with your own independent legal, accounting, or business advice and the disclosure document provided by the franchisor.

Entering a franchise is a big decision. Before you do so, you should:

• Conduct due diligence – this means researching the franchise system and talking to current and former franchisees.
• Get advice – get legal, accounting, and/or business advice from professionals with expertise in franchising.
• Read all the documents – carefully study the disclosure document, franchise agreement, and any other documents provided by the franchisor.
• Know your rights – make your own enquiries to ensure that it is the right decision for you.

As an franchisee, the more you understand about your business, the better chance it has of achieving its goals or expectations. That's why we typically encourage franchisees to actively participate in restaurant operations. Of course, it's also feasible if you have a strong team that can assist you in ensuring the brand's development aligns with your business expectations.

No, you are responsible for hiring your team members. However, Subway® can provide a guideline on arranging shift schedules and number of manpower required to run your day-to-day operations.

Generally, all restaurants are expected to be open 7 days a week for a minimum of 98 hours per week, unless there are special circumstances (e.g. limited to mall opening hours).

The standard franchise fee (for the first restaurant) starts from USD10,000*.
*as of May 2024

• 8% Royalty fee of Weekly Gross Sales, after sales tax*
• 4.5% Advertising fee of Weekly Gross Sales*
  

  *as of May 2024

A Subway® franchise agreement has a 20-year term.*
*as of May 2024

While every case is different, typically from signing your Franchise Agreement to opening your business, is between 6 and 12 months.

A healthy profit margin for the restaurant industry generally falls between 10-20%.

Compared to other fast food restaurant brands, Subway®'s operating model is relatively simple as we are oil-free, smoke-free, and fry-free. Excluding special types of restaurants like drive-thru, during peak times, we typically only require about 3-4 staff on average to manage operations.

Training and support begins before you purchase a restaurant and throughout your time as a franchise owner.

All new franchise owners to attend an intensive training course and undertake on-site training at a restaurant.

Once training is complete, on-going support comes in many forms, including coaching, business support, food preparation training and staff training support.

• Restaurant Site Selection Assistance: Subway® professional leasing partners will aid you in finding your suitable location within a manageable risk range.
• Restaurant Design: Subway® will provide custom floor plans to optimize layout and functionality.
• Operation Manuals: Subway®’s comprehensive manuals include proven control methods, established standards, systems of control, and key performance indicators.
• Marketing & Development: Subway® will provide regional and local support for business guidance and assist franchisees in developing effective marketing materials.
• Retail Technology: Subway® equips franchisees with retail technology applications and point-of-sale (POS) hardware, making it easy to operate a Subway® restaurant, even for those with no prior experience in food and beverage.
• Furniture, Equipment, and Ingredients: Subway® provides a list of approved vendors that uphold quality standards while ensuring the best value for franchise owners.
• Food Safety & Hygiene: Ongoing training and resources will be provided to ensure compliance with food safety and hygiene standards.

As an owner, you are trained by your Franchisor in the policies and procedures for independently operating a Subway® restaurant. This is done by our training teams located around the globe.

We provide a comprehensive training course for you to obtain the skills needed to operate your business in accordance with our standards. The training course consists of two components: 1) In-Restaurant training and 2) In-person, instructor-led training (ILT), virtual training consisting of online courses/webinars, or a combination of both.

The duration of the training program may vary from 1-2 months in total, depending on the country you are in.

You are responsible for site selection and location requires approval by Subway® to ensure feasibility.
However, Subway® professional leasing partners will aid you in finding your suitable location within a manageable risk range, ensuring that traffic, building layout, and other factors contribute to maximizing the returns on this investment.

The franchisee-owned and operated purchasing company (Independent Purchasing Company) negotiates the lowest costs for food and services, while maintaining quality, standards, and ensuring the best value for Subway® franchise owners.
However, master franchise partners are allowed to find alternative appropriate in-market sources for ingredients and equipment that meets our high-quality specification, subjected to approval.

To ensure consistent quality across our offerings, Subway® maintains a core menu.

However, for international markets, we collaborate with local partners to tailor the menu to suit regional tastes and preferences.
Additionally, we encourage franchisees to propose new menu items that could enhance the customer experience, subjected to approval.

• Franchise Fee: This is the fee payable to Subway®
• New Restaurant Costs: If purchasing a new restaurant, a fit out and equipment package will be required.  The costs for this will vary dependent on location and size of the premises. 
• Financial and Legal Advice: As you work through the franchising process, there will come a time when you need to seek financial and legal advice about the business you are looking to purchase and the franchise agreement you would need to sign. You will need to obtain a quote from your legal adviser and accountant on what costs may be associated with this.
• Training: Your Franchise Fee includes the cost of your Subway® Training course to become a Franchise Owner.  You will need to budget for travel to our Training centre in Brisbane, and accommodation and meals during your stay.