You know, I never really thought I’d consider getting into the food business, until I stood in line at a Subway one day and watched ten people ahead of me happily building their sandwiches. That line moved fast, the guy at the counter barely looked stressed, and every customer left satisfied. That’s when it hit me: “This thing basically runs itself.” Well, not literally, but close enough.
Now fast forward a few weeks, and I’m deep into research mode, trying to figure out if owning a Subway in India is actually worth it.
Spoiler alert: it’s not cheap, but it might just be one of the smarter franchise bets in 2025.
So if you’re someone who’s been itching to launch a business but doesn’t want the chaos of building something from zero, a Subway franchise might be worth exploring. If you’ve ever wondered about the Subway franchise cost in India, this blog isn’t going to sugarcoat anything. I’ll walk you through the real investment figures, the possible profits, hidden costs, the process of getting one, and whether this is a ride worth taking.
Let’s talk numbers, risk, reward, and that thing nobody tells you until it’s too late.
Beginning of Subway: How the Brand Started
The history of Subway started in 1965 when Fred DeLuca, then 17 years old, borrowed $1,000 from Dr. Peter Buck, a family friend, to open a sandwich business in Bridgeport, Connecticut. The objective? to assist in paying for Fred’s education in medical school.
By 1968, the original establishment, known as “Pete’s Super Submarines,” had changed its name to “Subway.” The founders had a simple vision: serve fresh, affordable, customizable submarine sandwiches to the masses.
By 1974, the brand started franchising. Its low investment model and strong consumer appeal helped it grow rapidly, not just in the US, but globally.
As of 2025, Subway operates in over 100 countries and continues to innovate with vegetarian options, healthy menus, and regional adaptations.
Why Subway?
One of the biggest fast-food restaurants in the world, Subway is well-known for its ‘Eat Fresh’ philosophy. It joined the Indian market in 2001 after being established in the United States in 1965. Today, it is among the most recognized franchises in India, with over 900 outlets across more than 160 cities—and the number keeps growing.
Key Reasons Why Subway is Popular in India:
- Health-conscious menu options
- Vegetarian and non-vegetarian choices
- Affordable pricing for middle-class customers
- Strong brand recognition
- Scalable and easy-to-operate business model
Cost of Subway Franchise in India
To open a Subway outlet in India, you need to invest in franchise fees, setup, equipment, marketing, and staff training. Here is a detailed breakdown:
1. Initial Franchise Fee
- ₹6.5 lakhs to ₹8.5 lakhs
You must pay Subway this sum in order to be approved as a franchisee. It covers training and rights to use the brand.
2. Setup Cost
- ₹25 lakhs to ₹35 lakhs
Includes interior setup, kitchen equipment, furniture, counters, air conditioning, and signage.
3. Real Estate (Lease or Rent)
- ₹50,000 to ₹2 lakhs/month depending on city and location
Location plays a big role in footfall and sales. Malls, high streets, and business hubs are ideal.
4. Royalty & Advertisement Fees
- Royalty Fee: 8% of monthly gross sales
- Marketing Fee: 4.5% of gross sales
These recurring fees help Subway maintain global marketing campaigns and brand support.
Total Subway Franchise Investment in India
| Expense | Estimated Cost (in ₹) |
| Franchise Fee | 6.5 lakhs – 8.5 lakhs |
| Setup Cost | 25 lakhs – 35 lakhs |
| Rent (Monthly) | 50,000 – 2 lakhs |
| Working Capital | 2 lakhs – 5 lakhs |
| Misc. Expenses | 1 lakh – 3 lakhs |
| Total Estimated Investment | ₹35 lakhs to ₹50 lakhs |
Profit Margin & Return on Investment
Subway franchises have a good profit margin because of low food costs and strong brand loyalty.
- Average Sales (Monthly): ₹4 lakhs to ₹12 lakhs depending on location and size
- Net Profit Margin: 15% to 25%
- Estimated Monthly Profit: ₹60,000 to ₹2.5 lakhs
- ROI Timeline: Typically, it takes 18 to 30 months to break even.
Subway Franchise Requirements in India
To get approved for a Subway franchise, you must meet certain eligibility criteria and possess the financial and leadership qualities that Subway looks for in a franchisee. Here’s a breakdown:
1. Eligibility Criteria:
- Indian Citizenship: Must be an Indian citizen (individual or company).
- Age: 25 years and above.
- Clean Criminal Record: A good personal and professional background.
- Credit History: Strong credit history, which indicates your ability to handle finances well.
- Business Experience: While prior experience in the food industry is a plus, it’s not mandatory. However, having business management skills will certainly help.
2. Ownership Path
Subway is seeking seasoned franchise owners who are looking to expand their portfolio of businesses. Here’s what Subway expects:
- Prior Experience: If you’ve previously run a restaurant or have franchise experience, it will give you a significant advantage.
- Leadership Skills: You need to demonstrate leadership abilities, including team management, operational control, and customer service excellence.
- Shared Values: Subway looks for individuals who align with the company’s core values such as commitment to providing fresh, healthy food, maintaining high standards of customer service, and fostering strong community connections.
3. Financial Requirements:
Before you proceed, it’s important to ensure you meet Subway’s financial prerequisites for franchise ownership:
- Net Worth: You must have a net worth of at least $150,000 (approx. ₹1.2 crore).
- Liquidity per Location: You should have $100,000 (approx. ₹80 lakhs) in available liquidity to cover initial setup costs and to run the business effectively in the beginning.
This ensures that you are financially healthy and well-capitalized, allowing you to successfully launch and manage one or multiple Subway outlets. The financial backing will also provide the liquidity necessary for setting up the store and ensuring smooth day-to-day operations.
4. Space Requirements:
- Minimum Area: The store should have a minimum area of 250 – 1000 sq. ft. depending on the location type.
- Utilities: Your space should have proper water and electricity connections.
- Ideal Location: It is advisable to have the outlet in a high-footfall area like near colleges, malls, metro stations, or business hubs.
5. Staffing Needs:
- Team Size: You need at least 5-7 staff members including sandwich artists, a store manager, and cleaning staff. You will receive training on how to hire the right people.
Steps to Apply for Subway Franchise in India
Here is a simple step-by-step process to get a Subway franchise:
Step 1: Online Application
- Visit the official Subway India website
- Click on “Own a Franchise”
- Fill in the franchise application form with personal, financial, and location details
Step 2: Franchise Review
- Subway India team will review your application
- A background check may be conducted
Step 3: Interview & Meeting
- Personal interview to evaluate your intent, goals, and business understanding
- Discussion about location and site inspection
Step 4: Sign Franchise Agreement
- Once approved, you’ll sign a franchise agreement
- Pay the initial franchise fee
Step 5: Training & Setup
- Attend a 2-week training program
- Setup your store as per Subway design guidelines
Step 6: Launch the Store
- Final approvals and inspections
- Grand opening with Subway’s support and marketing assistance
Benefits of Owning a Subway Franchise
1. Established Brand
Subway is a globally recognized brand, which helps in building customer trust quickly and attracting footfall without heavy branding efforts.
2. Operational Support Provided by Subway
Franchisees receive extensive support including:
- Assistance in selecting the store location
- Store layout and interior design guidance
- Marketing and promotional campaigns
- Staff hiring and training programs
3. Menu Flexibility
Subway allows menu customization based on local preferences. For example, franchisees can offer vegetarian-only menus, Jain options, or region-specific flavors.
4. Rising Demand for Healthy Food
With growing awareness about health and wellness, Subway’s “fresh and healthy” positioning aligns well with current food trends, attracting health-conscious customers.
5. Low Wastage Business Model
The modular food preparation system, fresh ingredients, and minimal use of cooked items reduce food wastage and improve inventory management efficiency.
Things to Consider Before Investing
Starting a Subway franchise is exciting but comes with responsibilities.
Key Points to Think About:
- Maintaining high-quality service is essential to keep customers coming back. Consistency in food quality, hygiene, and staff behavior plays a big role in customer satisfaction.
- Subway faces tough competition from other fast-food chains like McDonald’s, Burger King, Domino’s, and regional players, making it important to choose a good location and plan marketing wisely.
- Franchisees must follow Subway’s strict operational standards, including specific recipes, hygiene protocols, store layout, and training, which limits flexibility and customization.
- The initial setup cost can be quite high, especially in metro cities due to expensive rentals, interior costs, and staffing requirements. Proper financial planning is necessary before starting.
Final Thoughts
Owning a Subway franchise isn’t about throwing money at a brand and hoping it prints profits. It’s about showing up, managing people, staying consistent, and learning to run a tight operation. The brand name definitely helps, people already trust it, but the real growth comes when you treat the outlet like your own business, not just a side gig.
If you’re someone who wants to build something solid, who’s ready to learn, adapt, and stay involved, a Subway franchise could be a smart, long-term play. But go in with your eyes open. Understand the numbers—including the Subway franchise cost in India. Visit a few stores. Talk to real franchisees. See if you can imagine yourself in their shoes, day after day.
And then, if it still feels right, take the next step.
FAQs
1. How much does it cost to open a Subway in India?
The total cost ranges from ₹35 lakhs to ₹50 lakhs, including franchise fees, setup, and operational costs.
2. Is Subway profitable in India?
Yes, if located in a high-footfall area, Subway can earn a profit of ₹60,000 to ₹2.5 lakhs/month with a 15–25% margin.
3. Do I need prior experience to open a Subway?
No, but having some business or food industry experience helps. Subway also provides full training.
4. How long is the Subway franchise agreement valid?
Usually, the franchise agreement is for 10 years, renewable based on performance.
5. Can I open multiple Subway franchises?
Yes, once your first outlet runs successfully, you can apply for multi-unit ownership.
