Subway Franchise in India: Cost, Profit & Process

Did you ever wish to own a Subway franchise in India because you thought it must be fun to run a global brand like this? Well, you are not completely wrong. A food brand like Subway, one of the biggest quick-service restaurant (QSR) chains in the world, is well-known for its freshly made and customizable sandwiches. The good part is that investing in a subway franchise in India is a promising opportunity for aspiring entrepreneurs. This blog is compiled with detailed information about Subway franchise cost, profit, and application process.

Why Consider a Subway Franchise in India?

Subway is globally famous in the food industry, and this is a major advantage to start a franchise in India. The projected value of Subway is a remarkable $9 billion. This is a fantastic chance to invest in such a reputable and well-known brand. With the opening of more than 100 new locations in 2024, they now have over 900 locations spread over more than 160 Indian cities.

The quick service restaurant market in India is projected to grow at a compound annual growth rate (CAGR) of 9.36% from its expected INR 2,378.9 billion in 2025 to INR 3,726.52 billion by 2030. Let us explore why this is an ideal opportunity for all the aspiring entrepreneurs who are looking forward to investing in this.

• Established Brand: You can make use of a well-known and reliable brand name on a global basis.
• Proven Business Model: Adhering to a menu and operational structure that has been proven to work.
• Training and Support: Getting thorough instruction and continuing assistance from the franchisor.
• Advertising and Marketing: Gaining from regional and national advertising campaigns.
• Relatively Lower Initial Investment: Often viewed as having a lower entrance barrier than certain pizza or burger chains, this QSR has a lower initial investment than certain others.
• Flexible Menu: Subway has been adding additional vegetarian options to its menu to accommodate local Indian dietary requirements and tastes.

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The market Trends:

• Considering the potential for expansion in these sectors, Subway has been focusing more on growing its presence in India's smaller cities.
• There are many domestic and foreign competitors fighting for market share in India's fiercely competitive Quick Service Restaurant (QSR) industry. Local fast-food companies, pizza joints, and burger chains compete with Subway.
• To reach the tech-savvy Indian customer, Subway, like other QSRs, is probably focusing on digital channels for marketing, ordering, and delivery.
• An important benefit of Subway's marketing as a healthier fast-food option is that it fits well with India's expanding wellness and health trends.

Subway Franchise Cost in India

You must be wondering if Subway is the ideal brand to invest in, and what the investment looks like. So, let’s get to the numbers. How much will it cost to invest in a Subway franchise in India? The location, store size, and interior design all affect how much it costs to open a Subway franchise. Here’s a breakdown of the expenses:

Ongoing Expenses

• Royalty Fee – Subway charges 8% of total sales as a royalty fee.
• Advertising Fee – A 4.5% marketing fee is deducted from sales.
• Raw Materials & Staffing Costs – Varies by location and store size.

Profit Potential of a Subway Franchise in India

Revenue & Profit Estimation

Subway’s revenue depends on footfall, location, and pricing. Here’s an estimate of monthly earnings:

On average, franchise owners can expect an ROI within 2-3 years, depending on sales and operational efficiency.

The key considerations:

• As you expand your client base, your first few years may be less profitable.
• To maximize earnings, cost management must be done well.
• Sales can be increased by keeping up with Subway's marketing campaigns and promotions.

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Step-by-Step Process for a Subway Franchise in India

Subway provides constant support to help grow its franchisees. Additionally, it is important to do your market research to get the most recent data about the subway franchise in India. Here’s a detailed guide to help you navigate the application process when you apply for a subway franchise:

• Basic Inquiry: Get in touch with Subway's franchise development team in India to show your interest. Contact details are typically available on their official website.
• Submission of the Application: You will need to fill out the application form to proceed with the application. A thorough application containing details about your background, financial situation, and company experience is a must.
• Financial Review: To make sure you have the funds to invest in the franchise and maintain the business, Subway will examine your financial background. Proof of net worth and liquid assets will probably be needed.
• Interview and Discovery Day: The franchise development team will invite you for an interview if your application is selected for further consideration. Additionally, you may receive an invitation to a "Discovery Day" where you can meet with corporate personnel, ask specific questions, and learn more about the Subway service
• Location Selection: You and Subway will work together to choose a good site for your establishment. When choosing a location, Subway usually follows certain standards that take accessibility, foot traffic, and visibility into account.
• Franchise Agreement: The Franchise Disclosure Document (FDD) and the franchise agreement will be sent to you after a location has been decided. Before signing, it is imperative that you carefully read over these contracts with a financial and legal expert. The franchise system, costs, responsibilities, and financial results will all be covered in full by the FDD.
• Acquiring Financing: If required, you will have to obtain the franchise's required funding. This could entail bank loans, personal savings, or other financial arrangements.
• Site Development and Construction: Following the signing of the lease, you will start planning and building your restaurant according to Subway's guidelines. During this procedure, Subway will offer direction and permission.
• Training: A Subway-approved training facility will provide you and your key employees with thorough instruction. Every aspect of restaurant operations is covered in this training program, including marketing, inventory control, customer service, and food preparation.
• Pre-Opening Support: Subway will offer assistance with marketing and operational preparation throughout the time leading up to the opening of your restaurant.
• Grand Opening: With assistance from the franchise staff, you will open your Subway store.
• Ongoing Support: Subway will provide you with continuous assistance as a franchisee in areas including marketing, operations, and product development.

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Things to Consider Before Investing:

• Do you understand the market? To understand local competitors and consumer preferences, do an in-depth market study in the area you want to target.
• What are your financial plans? Create a thorough financial strategy that accounts for projected revenue, operational expenditures, and all initial investment costs. Regarding possible profitability, be realistic.
• Do you have the legal analysis? Consult an expert franchise lawyer to analyze the franchise agreement and the Franchise Disclosure Document.
• What do you know about the Subway franchise? To learn about the experiences of current Subway franchisees in India, speak with them directly.
• Are you willing to work hard? Running a franchise demands a great deal of hard work, devotion, and commitment. You will need to put in all your efforts to make it successful.

So, are you excited to build a Subway franchise in India? Well, this is the perfect opportunity to own a business with an established brand name. Now you have the cost breakdown and a step-by-step process to guide you, you must grab this opportunity and thrive in the business world.

If you are interested in getting a Subway franchise, Get it here

Frequently Asked Questions

Q. Who is the CEO of Subway?

After former CEO John Chidsey retired at the end of 2024, Carrie Walsh became Subway's interim CEO on January 1, 2025. Walsh, the company's Global Chief Marketing Officer and former President of Subway's Europe, Middle East, and Africa (EMEA) region, is currently in charge of the business while a permanent CEO search is underway.

Q. How much does it cost to open a Subway franchise in India?

The investment cost to open a Subway franchise in India may depend on factors like location, size of the outlet, and pricing. Here’s a rough breakdown of the investment:

• Franchise Fee: 6-8 Lakhs
• Equipment & Interiors: 30-40 Lakhs
• Store Setup & Rent: 10-15 Lakhs
• Initial Working Capital: 5-7 Lakhs
• Total Investment: 50-60 Lakhs

Q. What is the profit margin of the Subway franchise?

Estimated Monthly Profit The following breakdown is based on an average monthly sales revenue:

• Monthly Sales: ₹10-15 Lakhs
• Cost of Goods Sold (40-45%): ₹4-6 Lakhs
• Rent & Utilities: ₹1-2 Lakhs
• Salaries & Wages: ₹2-3 Lakhs
• Marketing & Royalty Fees (12.5%): ₹1.25-1.87 Lakhs
• Net Profit (Approx): ₹1.5-3 Lakhs

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