
Subway Franchise Cost & How it Compares to Other Franchises
How much does a Subway franchise cost, and how does it compare with other restaurant franchise opportunities? Below, we break down Subway’s estimated investment and ongoing fees, compare them with several other brands, and explore how the Teriyaki Madness model differs.
The Subway Story
Subway is one of the world’s largest quick-service restaurant brands, with nearly 35,000 restaurants globally. Initial investment costs for a Subway franchise can range between $263,000 and $630,000 for a traditional location (with a non-traditional location being inside of another establishment like an airport, hospital, or gas station), assuming equipment is leased from the franchisor. Additionally, Subway franchisees are also required to contribute a royalty fee of 8% of gross sales and an advertising fee of 4.5% of gross sales.
What’s more, Subway’s current franchisee strategy prioritizes potential franchisees who can commit to multi-unit operations (specifically, five or more units) and requires them to agree to a 20-year franchise term.
This is a significant commitment, especially for those who may just be entering franchise ownership and are looking for a more affordable option.
Subway Franchise Costs vs. Other Fast Food/Fast Casual Franchise Costs
For context, here is a comparison of Subway’s traditional franchise ownership costs to other large QSR franchise brands:
| Brand | Franchise Fee | Total Initial Investment | Royalty Fees | Advertising Rate | Liquid Cash Requirement |
| Subway | $15,000 | $263,000-$630,000 | 8% | 4.5% | $750,000 in non-borrowed personal funds |
| McDonald’s | Up to $45,000 | $1,472,000-$2,807,000 | 4-5% | minimum 4% | $100,000 |
| KFC | $45,000 | $1,207,575-$4,155,000 | 4-5.2% | Not disclosed | $750,000 |
| Pizza Hut | $25,000 | $846,000-$2,130,000 | 6-6.5% | 4.75% | Not disclosed |
| Taco Bell | $$45,000 | $287,950-$857,700 | 5.5% | Not disclosed | $2,000,000 |
| Teriyaki Madness | $45,000 (for one unit) or $99,000 (for three units) | $392,967-$1,122,405 | 6% | 4% | $200,000 |
Sources: Current Franchise Disclosure Documents and official franchisor websites, reviewed August 2026. Costs and financial requirements may vary by restaurant format, location, and other factors and are subject to change.
So, How Does Teriyaki Madness Stack Up?
When evaluating franchise ownership opportunities, population density, demographics, and existing competition should serve as significant factors.
Subway comes with decades of brand recognition and a lower initial investment than many restaurant franchises. But cost is only one part of choosing the right opportunity. Prospective owners also need to consider ongoing fees, market availability, growth options, franchise support, and whether the concept gives them something distinctive to bring to their community.
That is where Teriyaki Madness brings a different flavor to the conversation. Instead of another sandwich, burger, or pizza concept, TMAD centers on made-to-order Seattle-style teriyaki bowls with customizable proteins, vegetables, and sauces. For franchise owners looking to stand out in the fast-casual market, that differentiation can matter. That differentiation is only part of the equation. Teriyaki Madness also gives prospective franchise owners several reasons to look beyond the upfront investment:
- A distinctive position in fast casual: Teriyaki Madness brings together three strong restaurant categories: chicken, Asian-inspired food, and fast-casual dining.
- Options for owners who want to grow: The Teriyaki Madness model can support qualified franchisees pursuing single-unit or multi-unit development opportunities.
- Room to stand out in new markets: As Teriyaki Madness expands into additional areas across the country, franchisees may have opportunities to introduce a less familiar concept alongside more established restaurant brands.
One of the many great things about partnering with a brand like Teriyaki Madness, aside from the growth potential, is the attention and support you’ll receive as a franchisee. The franchise process is designed to help Teriyaki Madness representatives get to know you, for you to get to know us, and to provide you with everything you may need to own a great franchise business. For a closer look at what the Teriyaki Madness investment includes, explore our full franchise cost breakdown.
Ready to see whether Teriyaki Madness is your kind of franchise opportunity? Download our Franchise Report to learn more
