Subway Franchise Cost India — Official Fees, Requirements & Profit

If you’ve ever thought about owning a food business in India, a Subway franchise might already be on your radar. Known for its fresh, customizable sandwiches, Subway has built a strong presence with over 1,000 outlets across India. But before jumping in, it’s important to know the real Subway franchise cost in India, the official fees, setup requirements, and how much profit you can actually make. In this guide, we’ll break down everything in plain language — so you know exactly what it takes to get started in 2025.

How Does the Subway Franchise Model Work in India?

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Subway’s franchise model in India runs through a master franchise agreement with Everstone Group. This South Asia-focused investment firm signed one of the biggest master franchise deals in QSR history. Their collaborative effort plans to triple Subway restaurants in India from 700 locations over the next decade.

Traditional vs non-traditional outlets

Subway has two different outlet formats in the Indian market:

1. Traditional locations: These standalone restaurants are usually found in shopping malls, street corners, or plazas that get heavy foot traffic. They need more space and money to set up.
2. Non-traditional locations: These spots work inside existing places like airports, colleges, hospitals, convenience stores, and gas stations. They fit in smaller spaces where people already gather.

North American non-traditional locations, roughly 5,900 of them, saw their same-store sales grow by 13% in the first three quarters of 2022 compared to 2021. Places like airports, college campuses, and hospitals bounced back strongly with a 22% jump in sales after COVID-19 restrictions eased.

Steps to choose the right outlet type:

1. Check your experience level (non-traditional spots work better for seasoned operators)
2. Look at your budget (traditional spots cost more)
3. Study what the local market needs
4. Check available space (traditional: 350+ sq ft; food court: 170+ sq ft)
5. Look at competitors in your target area

Franchise ownership structure

Subway’s franchise structure in India follows a clear chain:

1. Master franchise level: Everstone Group runs things in India, Sri Lanka, and Bangladesh
2. Regional development agents: They watch over franchise operations in specific areas
3. Individual franchisees: Business owners who run specific restaurant locations

Steps to understand the ownership structure:

1. Reach out to Subway’s franchise development team
2. Send in your application with background and financial details
3. Let them check if you can afford the investment
4. Show up for the interview and “Discovery Day” to meet the team
5. Pick a location with the Subway site selection team’s help
6. Read and sign the Franchise Disclosure Document and agreement

Role of the franchisee

Subway’s franchisees in India have specific jobs:

1. Initial setup: Pay ₹6.5 lakhs as franchise fee, find the right spot, get equipment and décor ready
2. Staffing: Get at least 8 people on board and train them well
3. Operations management: Run daily tasks like food prep, customer service, and stock control
4. Financial obligations: Give 8% of gross sales as royalties and 4.5% for advertising weekly
5. Compliance: Keep up Subway’s quality standards and follow their rules

What Is the Total Investment Required for a Subway Franchise?

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Starting a Subway franchise in India needs smart financial planning since costs change based on location, format, and size. Here’s a detailed breakdown of the investment structure that will help you decide if this sandwich chain is right for you.

Subway franchise price in India

A Subway outlet comes with several upfront costs:

1. Review your budget – Check if you can invest between ₹50-60 lakhs (minimum requirement)
2. Know the franchise fee – This one-time payment runs from ₹4.5-8 lakhs based on location and format
3. Calculate total upfront investment – Regular stores need ₹90-110 lakhs, while kiosk formats need ₹70-85 lakhs
4. Secure the down payment – Most owners pay 50% after application approval, and the rest before training starts
5. Plan for working capital – Keep ₹5-7 lakhs ready as working capital for your first three months

Your chosen format changes the investment range a lot. Some sources say ₹25-30 lakhs, but reliable data shows well-equipped outlets need at least ₹50-60 lakhs.

Breakdown of setup, interiors, and equipment

Setup costs are usually split this way:

1. Secure your location – Property deposits range from ₹8-15 lakhs (refundable)
2. Plan for store construction – Keep ₹10-15 lakhs for store setup and rent
3. Purchase equipment package – Set aside ₹30-40 lakhs for sandwich prep units, refrigeration, and POS systems
4. Invest in interiors – Budget ₹6-8 lakhs for outlet interiors
5. Install signage and branding – This costs about ₹4-6 lakhs
6. Stock initial inventory – Keep ₹3-4 lakhs for opening inventory

Equipment makes up much of your investment. Subway specifies all equipment details to keep brand standards consistent.

Recurring costs: royalty and marketing fees

Your ongoing expenses include:

1. Calculate royalty payments – Subway takes 8% of gross sales as weekly royalty
2. Budget for advertising fees – Marketing contributions take another 4.5%
3. Estimate food costs – Food and paper usually cost 28-32% of revenue
4. Plan for labour expenses – Staff costs run about 15-18% of revenue
5. Account for rent – Location costs vary but average 8-12% of sales or fixed rental (whichever is higher)

Royalty and advertising fees total 12.5%, higher than some competitors – factor this into your profit math. Most owners report monthly running costs around ₹1 lakh.

Comparison with other QSR franchises

1. Look at competitor investments – Subway’s entry cost (₹50 lakhs onwards) sits in the mid-range of QSR franchises
2. Compare space requirements – Subway needs 400-600 sqft, a moderate size compared to other brands
3. Check ROI timelines – Subway’s 2-2.5 year ROI period matches industry standards
4. Review profit margins – 30-40% gross margins put Subway in the middle range
5. Think over flexibility – Subway gives more flexible floor plans and lower startup costs than many competitors

Subway stands out with lower investment needs than major burger chains and its proven operational system.

What Are the Financing Options Available?

Your dream of owning a Subway franchise in India can become a reality with these smart funding options. Many entrepreneurs need help with startup capital, and several financing paths can help you get started.

Subway’s internal financing support

Subway helps qualified franchisees with startup costs:

1. Evaluate your eligibility – Subway funds up to 75% of equipment and leasehold improvement costs
2. Understand the terms – The financing comes with a 10% yearly interest rate
3. Calculate repayment period – You’ll need to pay back the loan in five years
4. Document your business plan – Create complete projections to back your application
5. Submit a formal request – Connect with your franchise development agent to apply

Subway works with preferred lenders who know their business model well, which makes your approval process simpler.

Bank loans and credit lines

Indian banks offer special QSR franchise financing options:

1. Research loan products – Private and public sector banks both provide franchise-specific funding
2. Prepare documentation – Banks need your business plans, financial statements, collateral details, and credit history
3. Understand coverage limits – You can get up to 60% of total franchise costs funded
4. Calculate interest rates – Rates range from 11.5 14% based on your credit profile
5. Plan for guarantees – You’ll need personal guarantees and collateral (10-20% above loan amount)

Lenders usually spread payments over 5-7 years. Some banks let you pay only interest for the first 3-6 months while you set up.

Government schemes for MSMEs

Government programs support franchise owners through:

1. Assess PMMY eligibility – Pradhan Mantri Mudra Yojana gives loans up to ₹10 lakhs without collateral for micro-enterprises
2. Explore Stand-Up India – Women and SC/ST entrepreneurs can get loans from ₹10 lakhs to ₹1 crore
3. Consider CGTMSE benefits – Credit Guarantee Fund Trust covers up to ₹2 crore when you can’t provide collateral
4. Apply through the MSME priority sector – These loans cost 0.5-1.5% less than regular commercial loans
5. Expect faster processing – These programs process 20-30% faster than standard loans

Equipment leasing plans cover 80-100% of equipment costs (₹18-22 lakhs) through 3-5 year leases. Monthly payments range from ₹45,000-60,000.

What Is the Process to Apply for a Subway Franchise?

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Want to become part of the Subway family in India? The application process combines careful screening with detailed support that ensures successful franchisees. A clear understanding of each step will help you direct your way through the process smoothly.

Filling the application form

Your journey begins with these crucial steps:

1. Request information – Subway’s official website offers franchise brochures with detailed information about this chance
2. Complete online application – The detailed questionnaire on Subway’s website needs your personal details, financial information, and proposed location
3. Submit documentation – Your completed application form must include all required supporting documents
4. Initial response – Subway’s franchise development team reviews your application and reaches out to qualified candidates
5. Express location preferences – Your desired territory should be marked in the application (typically exclusive within a 1 km radius)

Financial and background checks

Subway’s strict financial requirements ensure franchisee success:

1. Verify financial qualifications – You need a minimum net worth of INR 12657.07K with INR 8438.05K in liquid assets per location
2. Select financial bracket – Your specific net worth and liquidity range must be indicated in the application
3. Provide proof of funds – Bank statements, asset details, and other financial documentation are required
4. Background verification – Personal and business background checks assess your entrepreneurial capability
5. Schedule interview – Qualified candidates prepare for an in-depth interview with the Subway team

Franchise agreement and legal review

Qualified candidates move forward with formal agreements:

1. Meet the development agent – Subway’s local representative schedules a meeting about your application
2. Attend Discovery Day – Regional office visits help you learn more and meet existing franchisees
3. Review disclosure document – The Franchise Disclosure Document (FDD) contains all terms for your review
4. Conduct local research – Your market study helps verify the business chance
5. Secure financing – All funding arrangements must be finalised before proceeding
6. Sign agreement – The 20-year franchise agreement requires your signature and the initial franchise fee

Training and onboarding process

Subway’s detailed training prepares you for success:

1. Complete online training – Subway University’s online curriculum covers brand history, systems, and policies
2. Attend in-store training – A two-week practical training program happens at a designated Subway outlet
3. Select your location – Subway’s site team helps identify optimal restaurant locations
4. Build your restaurant – Subway’s design and construction teams cooperate to create your store
5. Prepare for opening – The pre-opening checklist includes ordering supplies and hiring staff
6. Grand opening support – Subway’s marketing team assists with your launch

What Are the Key Operational Requirements?

Your Subway restaurant needs to follow specific brand requirements to run smoothly and maintain quality standards in outlets of all sizes.

Space and location selection

1. Determine required space – Your restaurant just needs 300-600 sq. ft. with high prominence and front visibility for traditional outlets
2. Choose location type – You can pick from freestanding, inline, endcap, or drive-thru formats
3. Ensure high visibility – Look for locations with heavy pedestrian and vehicular traffic
4. Verify traffic counts – The location should have 15,000+ average daily traffic (ADT)
5. Secure parking – Reserve two convenient parking spaces for curbside and delivery service

Hiring and training staff

1. Determine staffing needs – Your franchise needs a dedicated team of at least two to three skilled people
2. Attend training program – You must complete the two-week training program at Subway’s regional training centre
3. Onboard staff – Train your employees using Subway’s standardised procedures
4. Implement staff protocols – Your team should learn safe food handling and monitoring processes
5. Establish management structure – Show that you know how to manage the store and daily operations

Equipment and POS setup

1. Order essential equipment – Set up items like sandwich unit, toaster oven, microwave, bread proofer and oven
2. Set up beverage systems – Get your beverage dispenser, ice machine, and coffee machine ready
3. Install POS system – Set up the system that tracks orders, payments, and transactions
4. Arrange security systems – Install a CCTV system to watch store security and safety
5. Configure Fresh Forward décor – Add Subway’s latest restaurant décor design

Daily operations and hygiene standards

1. Manage inventory – Check and order food ingredients and supplies from Subway’s approved vendors
2. Prepare food correctly – Use Subway’s recipes and standards for food preparation
3. Maintain cleanliness – Follow Subway’s strict handwashing rules, product temperature checks, and shelf-life procedures
4. Ensure quality control – Meet or exceed the FDA’s Food Code and the National Restaurant Association’s Serve Safe® program standards
5. Handle customer service – Respond to customer questions and feedback professionally

How Much Can You Earn from a Subway Franchise in India?

Want to know what your sandwich business could earn? Let’s get into the potential returns after covering your Subway franchise cost in India.

Subway franchise cost in India vs profit

1. Calculate your total investment – Your investment will range between ₹45-70 lakhs based on location and format
2. Project your payback period – Most franchisees break even within 24-36 months
3. Estimate monthly sales – A typical outlet brings in ₹10-15 lakhs monthly
4. Factor in ongoing fees – Note that 8% royalty and 4.5% advertising fees will cut into your margins
5. Analyse net monthly earnings – You can expect ₹1.5-3 lakhs in monthly profits after expenses

Monthly sales and expense chart

1. Track typical monthly revenue – Well-located outlets typically earn ₹10-15 lakhs in sales
2. Calculate cost of goods sold – This takes up 40-45% (₹4-6 lakhs) of monthly revenue
3. Budget for property expenses – You’ll spend ₹1-2 lakhs monthly on rent and utilities
4. Account for staffing costs – Staff salaries and wages run about ₹2-3 lakhs monthly
5. Deduct franchise obligations – Marketing and royalty fees (12.5%) take ₹1.25-1.87 lakhs each month

Profit margin benchmarks

1. Understand typical margins – Net profit margins typically fall between 15-25% of total sales
2. Compare location performance – High-footfall areas in metro cities often yield better margins
3. Consider format variations – Kiosks and express models offer faster ROI with lower initial investment
4. Analyse profit progression – Profits tend to improve after the first year
5. Monitor industry standards – Subway’s margins stay competitive in the QSR sector

Tips to improve ROI

1. Choose prime locations – Your success largely depends on high-traffic spots
2. Hire quality staff – About 70% of customers spend more when they receive excellent service
3. Understand local priorities – Match your menu to regional tastes when possible
4. Use Subway’s support – Make the most of their training, marketing, and operational guidance
5. Consider multiple outlets – Expanding to more locations can boost your overall returns

Case Study

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Success stories from Subway’s franchise world in India teach us a lot about the brand’s growth. The brand’s trip started in 2001 with its first Indian outlet in New Delhi’s Saket area. This small beginning led to amazing growth that now includes over 660 restaurants in more than 70 Indian cities.

The brand hit a major milestone with its 600th franchise restaurant in Bharuch, Gujarat. This expansion has made India Subway’s eighth largest QSR market globally based on outlet numbers.

A remarkable story comes from a printing industry veteran who switched careers after 26 years. He headed over to Subway franchising in 2005. His business skills and dedication helped him become one of the largest Subway franchisees in Asia. He now owns six restaurants in Chennai alone.

Subway holds a strong position with about 6% share of the Indian QSR market worth ₹18,800 crore. The brand stands third after Domino’s (21%) and McDonald’s (11%) in market share.

The brand’s proven systems and flexible structure help entrepreneurs from all backgrounds join the Subway family. Their smart adaptation to Indian rules and customer preferences creates profitable opportunities for franchise owners.

Conclusion

Starting a Subway franchise in India is not just about owning a food outlet — it’s about being part of one of the world’s largest quick-service restaurant chains. With an investment of ₹50 lakh to ₹90 lakh, you can tap into a proven business model, strong brand recognition, and consistent customer demand. The returns, while not instant, can become steady within 24–30 months, making it a smart long-term play for entrepreneurs looking to enter the QSR market.

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