Maybe it is out of your budget, but still, you want to open a food restaurant franchise that should be reputed, branded, well known, and trustworthy restaurant franchise, then here is your solution.
Yes, Subway Franchise is fulfilling all your requirements and you can afford it with huge profitability as well.
In this article, we are going to explore all details about the franchise of subway, what is the subway franchise cost, how you can get it, what are its requirements and conditions.
History of Subway Business Model
Subway is the restaurant franchise company of America, which was founded in 1965 by Fred DeLuca with the investment of $1,000 only.
Now, the subway is generating revenue of billions of dollars all over the world.
Subway is operating in 41,000 locations across 100 countries in the world including India, and it is the biggest single-brand restaurant chain and the biggest restaurant operator in the world.
Why Do People Love the Subway?
Before acquiring any franchise business, it is essential to check whether it is demanded by the people or not.
Because in the franchise business model, you are supposed to invest lakhs of rupees in a third party’s trust and business.
So, checking this point, the subway is loved by millions of people in India, and there are certainly valid reasons.
Subway provides very healthy food at a fair and affordable price and they use the fresh ingredients in your presence, so you can trust them fully.
Subway uses fresh vegetables and ingredients and does not use any processed food rather than sauces, and that is why it is very popular.
It is considered as the source of healthy food, and you know very well how much healthy food is demanded, and that is why the subway is very successful.
Subway Franchise in India
Subway is enhancing its business day by day by the franchise business model all over the world, and it entered India in 2001 from New Delhi.
In India, now the subway is on the next level of growth, and it has a different concept to do business.
Franchise business is done according to the demand, likes, and dislikes of the people of a particular country.
They have to take care of the taste of the audience of that country, in the USA and other western countries, people prefer fast food, but in India, people demand healthy food more.
So, the subway works in the direction of providing healthy food in India, because there are many franchise businesses of pizza chains and burger chains.
But there are very minimal branded outlets of the healthy food chains, and the subway took the benefit of that shortage and built the successful franchise business model.
Benefit of Acquiring The Subway Franchise
Again, whenever we are going to start a franchise business it means we are going to invest our money, effort, and time in the business of others.
So it is truly important to check whether it is beneficial for us or not and if it is beneficial, in which segment it is providing us the benefits.
Creating the brand for a new business is a very crucial thing and it consumes too much money, time, and effort.
Moreover, you need to apply hundreds of experiments, some of them can succeed, and some of them will fail.
The failed experiments will not give you any return, and your investment and expenditure will be lost.
When you acquire the franchise business Subway, you don’t need to do anything, you will get everything ready with the franchise.
You don’t need to do any experiment for customers’ likes and dislikes with feedback, because all stuff has been done by the Subway itself so you just need to run a business only instead of doing this all stuff.
Instead of having a good business model sometimes, investment becomes a barrier and here you are not going to face that problem.
If you want to buy a franchise of KFC, McDonald’s, or Dominos, you will need more than one crore to own but if you do not have more investment to open a food franchise business then Subway is the best for you.
Subway is offering you a franchise business model with a very low cost which is almost rupees 55 lacs.
We are going to discuss the breakdown of this amount in this article.
No Need For More Employees
Many other food restaurant franchises are asking for too many e employees to run that franchise.
But in some way franchise model you will not need more than 5 to 10 employees as a staff.
It is very beneficial for you because it will save many costs that you can use on other stuff.
Less Land Requirements
To take the business of Subway franchise you will need very less land according to the location on which you want to start a Subway franchise.
No Need to Do Marketing and Advertisements
You are paying the marketing and Advertising fee to the franchise, so you don’t need to do Marketing and Advertising to grow the business, which is a very beneficial aspect of Subway’s franchise business model.
The benefit of this aspect is there you will save too much time and effort that you can use in customer service.
Moreover, Subway is doing that stuff and it has already built a brand in people’s minds.
Franchise Cost of Subway in India
- Franchise Fee: 6.5 Lakhs
- Total sales charged per week: 12.5%
- Royalty: 8%
- Advertising Fee: 4.5%
- Property Cost: 2 Lakhs to 8 Lakhs
- Improvement of Property Cost: 6 Lakhs to 8 Lakhs
- Equipment Cost: 30 Lakhs to 50 Lakhs
- Security Items: 40k to 60k
- Transportation Charges: 45k to 55k
- Sign Board Charges: 75k
- Inventory: 1.20 Lakhs to 1.70 Lakhs
- Insurance Charges: 20k to 30k
- Supply Charges: 20k to 50k
- Training Charges: 1 Lakh
- Legal Accounting: 40k to 70k
- Advertising Charges: 80k to 1.5 Lakhs
- Misc Cost: 50k to 2 Lakhs
- Backup Amount: 3.5 Lakhs to 5 Lakhs
So, including this all cost, the total subway franchise cost is between Rs 53,90,000/- to Rs 89.10,000/-.
It is a very profitable deal if you are going to invest 55 lakhs rupees and earn around 1.5 crores rupees.
Location And Space Requirements
If you want to buy a franchise of Subway, you need to choose the location yourself and need to decide which kind of franchise off the subway you want to acquire.
There are four types of subway franchises.
- With Seat
- Without Seat
Then according to location, they have divided the franchise in two categories.
- Traditional Location
- Non-Traditional Location
If you want to open the franchise for the subway in a mall or profitable building, it is considered a traditional location.
For the traditional location, then you will need land from 350 sq ft to 500 sq ft.
Non Traditional Location
Whereas if you want to start the franchise chain of the subway in a railway station, gas station, drive through, or airport, these all are considered as nontraditional locations.
For the nontraditional location, you will need land from 170 sq ft to 200 sq ft.
ROI of Subway Franchise Business
According to Subway, you recover all the investment done to buy a subway franchise within 2 to 5 years, and then whatever you earn will take home as a net profit.
How to Get Subway Franchise in India
The process for getting a Subway franchise is very simple. You just need to visit their official site and submit the form with the required details.
After that, the representative of your local area subway department will contact you, and details will be finalized.
During the process, you will be given basic math and English test which you will have to qualify for.
The development agent will assist you from beginning to end about how to open a subway restaurant, what are the best practices, which things you need to take care of, and you and your employees will be provided the training as well.
Moreover, Subway is growing in India with the ultimate speed. Currently, Subway has 600-700 stores in India which they are going to convert to 1000 in the coming two years.
How Will You Become Profitable
By taking a subway franchise business, will you become profitable or not, and then how much, depends on many aspects.
It depends on which location you pick, how much the subway popular is, and how much the subway is demanded there.
The location matters a lot to make the business profitable because the wrong selection of location for franchise business can carry you in the direction of loss instead of profit.
In order to avoid this unwanted situation, it is very recommended that you conduct a deep market research first.
It is essential to check whether it is demanded in your area or not, and if it is demanded then how much is demanded.
If there are two or three subway outlets in your nearby area if you open another one, then how would you get customers, right?
Subway Restaurant Menu
You can see all the product ranges of Subway that you will be given to serve the customers on their official website of India, and here are some of them.
Subway is popular for sandwiches, and along with that, it is serving some other tasty foods as well.
- Signature Wraps
- Chhota Sub
- Sides and Drinks
- Breads and Toppings
It differs with countries as well, these items are Subway franchise India and you can grab more information about the menu from their official site of India.
Conclusion on Getting Subway Franchise in India
If you are looking for a franchise business model having worldwide trustworthiness and reputation in your budget, the subway franchise is the best one for you.
Moreover, the subway is the fastest-growing food restaurant chain business which will make you profitable in a very little bit of duration.
FAQ For Getting Subway Franchise in India
While investing lakhs of rupees for the third party business is not a small deal, even if it is very profitable, and we know that then also, you should ask some questions yourself and on the web as well.
How can I get a Subway franchise?
Subway is a huge brand, but the process of getting the franchise is very simple.
You need to visit the website of Subway for the franchise, fill out the form, and submit it.
You will be replied from the team of the subway, and need to meet the local developer of your area.
Review the disclosure agreement, manage the finance as mentioned, sign the agreement, and you and your staff will be provided training.
Then you are free to start a subway franchise business on your location.
But before you go for this process, it is very recommended that you conduct deep market research of the area in which you want to open the franchise for the subway restaurant.
How much does a Subway franchise cost?
The franchise price of Subway in India depends on the location that you choose, the space that you use, and other aspects.
The fee of the franchise for the subway is 6.5 lakhs rupees, and the total cost to open the subway franchise is from 55 lakhs to 90 lakhs depending on several aspects.
How much does a Subway owner make a year?
The amount and profit generate per year depend on many aspects, some are making more than one crore per year, some owners are making around 40-50 lakhs rupees per year, and there are many subway owner who is making a net profit of rupees of 12-20 lakhs rupees per year.
It depends on which location you choose for opening the subway outlet, how many customers are coming per day, and many aspects.
What is Subway’s royalty fee?
The royalty fee of the subway is 12.5% which you have to pay every week.
In 12.5%, the royalty fee is 8% and 4.5% is the advertising fee.