Buying An Existing Subway Franchise Review

8% royalty on gross sales plus a 4.5% advertising fee. Steps to Acquire a Resale

Buying an existing Subway franchise offers a shortcut to ownership with a "built-in" customer base, but it requires deep financial scrutiny and a clear understanding of current corporate shifts. Unlike opening a new store, buying a resale gives you access to years of historical P&L statements and immediate cash flow. Financial & Strategic Checklist

Start by filling out the Subway Franchise Interest Form to gain access to the Franchise Disclosure Document (FDD). buying an existing subway franchise

New owners must complete a comprehensive 3-week training program , which includes both virtual and in-person components. Pros and Cons of a Franchise Resale Cash Flow Immediate income from day one. High royalty "haircut" (12.5% total). Setup No need for construction or site permits. Potential for outdated equipment or décor. Risk Proven location with historical data. You may be buying someone else's declining performance. Market Established local brand awareness. Fierce competition from brands like Jersey Mike's. Frequently Asked Questions | Subway Franchise

You must be approved by the local DA, who manages the territory and oversees the transfer process. 8% royalty on gross sales plus a 4

Corporate standards typically require a remodel every 10 years . When buying, check if a costly "Fresh Forward" update is overdue, as this can cost $50k or more and significantly impact your initial ROI. Estimated Costs & Requirements

While the purchase price for a resale is negotiated directly with the seller, you must still meet Subway's minimum financial benchmarks: $15,000. Liquid Capital: Minimum $100,000 in cash-on-hand. Net Worth: Minimum $150,000 total net worth. Financial & Strategic Checklist Start by filling out

Request 3–5 years of tax returns and sales records. Scrutinize the lease agreement for remaining options and potential rent hikes.