Subway Franchise Cost & How it Compares to Other Franchises
How much does a Subway franchise cost compared to other franchise restaurants? When considering a new investment in the fast casual market, which restaurant model holds the most potential for long-term success? Here’s a side-by-side comparison of a few top competitors to help simplify your search.
The Subway Story
With its catchy jingles and taglines, Subway is one of the biggest QSR franchises in the world. With a menu that appeals to a broad range of customers looking for a quick meal, the Subway brand is estimated to be worth more than $10 billion.
Initial investment costs for a Subway franchise can range between $140,050 to $342,400 for a traditional location, assuming you lease your equipment from the franchisor. In addition to startup costs, Subway franchisees are required to contribute from gross total sales each week to cover royalties of 8%.
Subway’s low menu prices combined with high royalty and advertising fees make turning a profit a tough endeavor for franchisees, particularly for single-unit owners. And with over 20,000 locations around the U.S., franchisees face an over-saturated market where they may end up competing with fellow Subway owners just down the street.
In recent years, Subway has closed the doors to multiple locations. In 2022, they closed 571 locations in the U.S. In 2021, they shut down over 1,000 stores; in 2020, it was 1,609. This may not come as a complete surprise, as the franchise has weathered multiple scandals and struggles to keep up with evolving consumer tastes and advancing technology.
Just to give you a larger picture, let’s compare a Subway franchise’s costs to other top brands:
| Franchise Fee | Total Initial Investment | Royalty Fees | Liquid Cash Requirement | |
| Subway | $15,000 | $140,050-$342,400 | 8% | $30,000-$90,000 |
| McDonald’s | $45,000 | $1,008,000-$2,214,080 | 4% | $500,000 |
| KFC | $45,000 | $1,440,600-$3,163,550 | 4-5% | $750,000 |
| Pizza Hut | $25,000 | $367,000-$2,063,500 | 6% | $350,000 |
| Taco Bell | $25,000-$45,000 | $$575,600-$3,370,100 | 5.5% | $2,000,000 |
| Teriyaki Madness | $45,000 | $305,750-$731,260 | 6% | $150,000 |
Sources: Entrepreneur and Teriyaki Madness 2023 FDD
Why Teriyaki Madness is a Better Franchising Match
The level of market saturation for Subway and many of the brands noted above varies by location. In some regions, Subway outlets seem to be on every corner, which is why Subway’s franchise costs are so seemingly low. While larger brands’ market presence can be an advantage, it also means facing stiff competition. Careful market research is essential to determine whether there’s room for another location in your chosen area. Consider factors like population density, demographics, and existing competition when evaluating your market’s potential.
Subway and these other brands have been around the block, but Teriyaki Madness is a newer name on the rise, with comparable investment costs, a more unique concept, and a scalable franchise model for investors who are seeking to grow.
Teriyaki Madness specializes in delicious and healthy Seattle-style Japanese teriyaki bowls, offering something different from typical fast-food fare. This uniqueness can set you apart in the market. The brand also capitalizes on two of the top markets in restaurant franchising: Asian and fast casual.
While Teriyaki Madness may not be as broadly established as some brands (yet!), the fact that it’s a growing brand with room for expansion allows you to get in on the ground floor of a franchise opportunity.
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 — and vice versa — and get you on track to running a kick-ass business.
To learn more about why franchising with Teriyaki Madness is the better option, download our franchise report.
