How Much Does a Subway Franchise Cost in India? | Procedure, Documents Required

April 2, 2024 - 9 minutes of reading - By
subway franchise cost in india

Subway Franchise in India: Are you looking to dive into the world of franchising Exploring food franchises is one of the profitable business models. But why do we say that Well, because a Subway business requires lower investments than many other franchises and has quite simple operations. Also, having a huge fan base due to the incredibly nutritious delights they have been serving over the years gives them an edge in the industry.

 

Owing to Subways zeal for treating customers with warm hearts and warmer sandwiches has made it a success. Leveraging a well-established business with a clear vision and ideas like Subway is an unmissable opportunity. Today there are around 600+ franchises in the country. 

 

So, jump on the bandwagon with fellow franchisees and earn a lucrative monthly income. We have curated this guide thatll arm you with all the knowledge required to own a Subway franchise in India.

 

 

Subway Franchise Price in India

 

Its a fact that Subway is quite a preferable choice when it comes to owning a Subway franchise in India. Because the overall expense of a Subway franchise cost in Indian rupees sums up to INR 30-40 lakhs, which is considered reasonable for a franchise of a brand as huge as Subway. This figure varies according to the size and location of your outlet. A small kiosk in a tier 2 city costs much less than a full-blown restaurant in a tier 1 city. 

 

Before taking your first step in this journey, ensure you have a 170-350 sq ft space to run your outlet. If you are still wondering if the Subway franchise is worth the investment, consider the multifold profits itll bring within 24-30 months.

 

For your convenience, heres a breakdown of all the expenses you need to bear to run an extensive Subway outlet smoothly. 

 

Expenses Head Amount
Franchise fee INR 6.5 lakhs
Outlet interiors INR 6-8 lakhs
Equipment  INR 30-40 lakhs
Security system INR 40-60K
Freight charges  INR 45-50K
Inventory INR 1.2-1.7 lakhs
Insurance INR 25-28K
Advertisement INR 1 lakh
Lease charges INR 2-4.5 lakhs

 

This is a broad overview of all the expenses that should be pumped in initially. However, working capital, employee salary, and other miscellaneous expenses also add to the total cost. In addition, 3.5-8% of the annual revenue goes to Subway India as advertisement and royalty fees.

 

Procedure to get a Subway Franchise in India

 

With a plethora of information on the internet, it can be difficult to figure out the correct way to register for a Subway India franchise. Dont worry; we have you covered. Heres a step-by-step process that you must follow to get a Subway franchise in India. 

 

  • Step 1 – To become a Subway franchise owner, head to the official website and fill in the application form with all your details. For any queries, reach out to Subway India @ sa_development@subway.com.
  • Step 2 – Next up, you should meet the Subway field development agent in person to understand the next steps. By doing this, you can thoroughly dive into the what and how of a typical Subway franchise.
  • Step 3 – While going all in to gear up for a successful business, conduct extensive market research to gauge your ideal location and customers. 
  • Step 4 – Once you have an idea about what your perfect business looks like, list the sources of finance available at your disposal.
  • Step 5 – Now, youre ready to sign the Franchise Disclosure Document that elaborates on the terms and tenure of the contract. At this stage, you have to pay the franchise fee to get into the agreement. 
  • Step 6 – As the next step, complete the training under Subway India to conform to their rules and business standards. You can get the franchise agreement only after you pass with at least an 80% score in the web training.

 

Finally, its time to start building your first Subway franchise store from scratch. Place your store strategically where you think people will take away frequently. For instance: Choose a busy marketplace or somewhere near offices.

 

 

7 Licenses & Documents Required to Start a Subway Franchise

 

Here are seven essential licenses that you should apply for before starting your outlets operations:

 

  1. Business Registration certificate A proof of identity as a sole proprietorship, LLP, Private Limited 
  2. FSSAI Registration Mandatory for all the food & beverage organisations falling under the small-scale food business
  3. Trade Licence Proves that you have permission to operate in a particular area
  4. Shop and Establishment Registration A must-have to use your space for commercial purposes
  5. GST Registration To abide by the tax laws 
  6. No Objection Certificate Acquired by the local fire department to ensure that the area is safe to run a business like yours
  7. Eat House License Necessary to seek permission to serve any food or beverage for consumption 

 

How Profitable Is a Subway Franchise in India

 

Subway has had quite a journey to own its space in the Quick Serve Restaurant sector. The major reason is its uniqueness, without a doubt. Their outstanding idea of bringing customisable touch to their sandwiches has blown away the market and won the hearts of many. Why wouldnt anyone like to dictate what they desire in their sandwiches It definitely has raised the bar of customer satisfaction and swayed people towards Subway. Using the best quality ingredients and bringing all things healthy to the table has given the company a little extra bonus. 

 

Subway takes pride in offering exclusive delicacies and being favoured by customers. Thats why they dont have to sell hard to gain profits. If you buy a subway franchise, you must brainstorm attractive marketing strategies to take their sales to the next level. A minimum sale will always find its way because of the brands goodwill. 

 

As it all boils down to the monetary side of the business, lets talk in figures. No one can stop you from making INR 20 lakhs or more monthly if you choose the right location and have a unique selling point. You can eventually expect a profit cut of 40-50%, which is higher than any average franchise.

 

7 Things to Remember While Applying for a Subway Franchise

 

Once you register as a Subway franchisee and sign the contract, theres no going back. So, commit to it only after you have ticked off this checklist and are willing to take the leap of faith. You, as a franchisee, should: 

 

  1. Possess hands-on experience in the F&B industry. 
  2. Have your funding source sorted, whether its self-funded or a bank loan.
  3. Strive to go all in to make the outlet a success.
  4. Be passionate about picking up the essential skills and preparing well to take up the unforeseen challenges that might spring up.
  5. Have utmost faith in the business model and the brand specifically.
  6. Research well in advance about the competition, market trends, and know your target group well. 
  7. Be extra sure about your outlet location, as it is pivotal to your venture’s success.

 

Pros vs Cons of Taking Subway Franchise in India

 

Pros and Cons of taking the subway franchise are provided below. This comparison will help to make the decision better whether the business model will suit the one or not.

 

Pros Cons
Established Brand: Subway is a globally recognized brand with a strong presence. Initial Investment: The upfront investment and franchise fees can be substantial.
Proven Business Model: Subway provides a proven and successful business model. Royalty Fees: Franchisees are required to pay ongoing royalty fees to the franchisor.
Training and Support: Subway offers comprehensive training and ongoing support. Location Challenges: Selecting the right location is critical, and competition may be high.
Menu Adaptability: Subway allows for menu adaptation to suit local tastes and preferences. Market Saturation: In some areas, there may be saturation with existing Subway outlets.
Diverse Locations: Franchisees can operate in various locations such as malls, airports, and standalone stores. Operational Challenges: Managing day-to-day operations can be demanding, requiring time and effort.
Marketing Assistance: Subway provides marketing support and brand awareness initiatives. Market Trends: The fast-food industry is subject to changing consumer preferences and trends.
Entrepreneurial Opportunity: Owning a Subway franchise offers entrepreneurial opportunities. Franchise Criteria: Meeting Subway’s criteria, including financial qualifications, is essential.

 

It’s important to note that the success of a Subway franchise depends on various factors, including the location, local market conditions, and the franchisee’s management skills. Potential franchisees should conduct thorough research, consider the pros and cons, and seek advice from franchise experts before making a decision.

 

What is Subway

 

Subway is a restaurant chain. Subway’s specialty is submarine sandwiches. The company was started in 1965 by Fred DeLuca and Peter Buck. Previously, the company’s name was Petes Super Submarines; later, it changed to Subway. In 2002, Subway became the largest food chain restaurant in the United States, with 100+ outlets across the country.

 

Submarine sandwiches are the specialty of Subway. It is made by rolling an Italian roll with cheese, vegetables, condiments, and sliced meats. The uniqueness of Subway is that its food products are not fried, unlike other fast foods; rather, they are garnished with vegetables and are healthier.

 

Subway’s concept is to be the market leader of “non-traditional branded fast food.

 

 

FAQS on Subway Franchise in India Subway Franchise Profit Margin in India

 

The frequently asked questions on Subway franchise in India are given below:

 

How much does a Subway owner earn in India 
The revenue of a Subway outlet is different for different cities and areas. However, a typical Subway franchisee earns around INR 20 lakhs a month. 

 

Is subway profitable in India 
Yes. Owing to its brand strength in the country, the Subway franchise is the wisest choice to invest in. If you do it correctly, it can bring up to 40-50% profit.

 

How much does a Subway franchise approximately cost in India 
Although the cost is subjective to the scale at which you start your franchise, a decent outlet at a customer hotspot ranges between INR 30-40 lakhs. 

 

Is Subway a good business to own
Yes, of course. A business with a comparatively low startup cost and decently high profits, like Subway, is the best business to own.

 

What is the franchise fee for Subway in India
To become a Subway franchise owner in India, you have to pay INR 6,50,000 as a franchise fee.

 

 

 

So, what are you waiting for Go use this knowledge to your benefit. We cant wait to see you soar high!

 

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About The Author

Kirti, a dedicated content writer, wields a bachelor's degree, infusing her work with a blend of expertise and creativity. With a keen eye for detail and a passion for brand marketing, she crafts compelling narratives that captivate audiences. Kirti's extensive portfolio spans various industries, with a particular focus on marketing. Her adeptness at simplifying complex concepts into digestible content sets her apart in the world of writing. Beyond merely conveying information, she strategically shapes messaging to resonate with target demographics, driving engagement and brand loyalty. Kirti's proficiency extends to the realm of coworking, where she collaborates seamlessly with teams to deliver cohesive marketing strategies.

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