The cost for opening a Subway Franchise varies from location to location, but it is estimated that it costs anywhere between Rs. 85 Lacs to Rs. 1 Crore to open a Subway Franchise store.
A Subway franchise can be an excellent opportunity for people who are interested in owning their own healthy food business and have the right skill sets and experience.
The initial setup cost is the one-time cost incurred by the franchisee to set up a Subway store. In India, it could be anywhere from Rs. 60 lacs - 1 crore, including the initial franchise fee.
It includes items like rent, furniture, fixtures, equipment and signage.
The initial setup cost for Subway varies depending on the location of the store. For instance, a Subway franchise in Mumbai will incur higher initial setup costs than a franchise in Delhi.
This is a list of all the things that you will need to have with you initially before starting a Subway franchise in India:
The Subway Franchise Fee in India is Rs. 6.5 Lacs.
The franchise fee covers the application cost, training, initial marketing and advertising, sales commission and general costs incurred by the franchisor's team in getting you all set up.
You have to pay the franchise fee if you get selected and approved by the franchisor to own a Subway Franchise.
For this purpose, you have to fill out the form here and wait for a response from them.
There are multiple equipment required for starting a Subway Franchise.
Here is a list of equipments:
The minimum budget required for equipment is around Rs. 25 Lacs - Rs. 30 Lacs. Most importantly, you can buy these equipment from only Subway-approved vendors.
It is to ensure the quality of food preparation and to maintain the standard of work practice at Subway Franchise.
Although, you will not need to invest more than 1.5 Crore in your Subway Franchise to run it smoothly, here is what you will require the funds for:
Subway Franchisees have to pay 12.5% every week (gross sales minus the sales tax).
Out of which, 8% goes toward the franchise royalties, and 4.5% goes toward advertising.
The average Subway monthly salary ranges from approximately Rs. 13,417 per month for an Account Executive to Rs. 23,553 per month for Area Manager.
Accordingly, you will need to hire around 5-6 people and train them according to Subway Standards.
You will be guided through each and everything by Subway's Corporate Team.
The franchise owners are obligated to buy from only subway-approved vendors.
Subway has an Independent Purchasing Cooperative (IPC).
IPC is a franchisee-owned and operated purchasing cooperative that negotiates the lowest costs for goods and services while maintaining quality and standards and ensuring the best value for Subway franchisees.
The minimum budget for supplies must be around Rs. 25,000 - Rs. 40,000 per month, depending on the demand in your area.
As the store uses high voltage equipment all day, the monthly utility bill could be around Rs. 40,000 - Rs. 50,000.
To successfully run a Subway franchise in India, it is important to set aside funds for 6 months in the future.
6-month backup funds are important for running a Subway franchise in India. This is because many things can happen in the future, and it is important to have some extra money set aside just in case something goes wrong.
You will need to keep a minimum of Rs. 20 Lacs - Rs. 30 Lacs as a safety net in case your franchise does not perform well initially.
The reason could also be that the people are either unaware or find it difficult to like the taste.
The other expenses in a Subway Franchise include the following:
Installing a security system is not mandatory, but it is recommended. It will always help in case of any conflicts, thefts or mishaps at the store.
Freight charges are the cost that a company pays to have goods shipped to them. These costs can vary depending on the type of freight, the distance it needs to be shipped, and if it is being sent by air or sea.
It has now turned out to be very beneficial to have insurance for each and everything you have. No one knows what can happen in the future. Thus, do not skip applying for insurance. After all, you invested to benefit from it and not lose it to mishaps.
The insurance amount could differ from company to company and the terms and conditions of it.
You will also get assistance for the same from the Subway Team.
The staff you hire will be trained by Subway's Team. But, they charge an amount for that purpose as well. It could cost you around Rs. 2,00,000 minimum.
When it comes to money, and that too a huge amount, you will definitely need to spend on accounting. It is mandatory to keep all your money clean and account for each and everything properly.
For this purpose, you can opt for a business service provider like StartEazy to help you with recording your accounts, or you can hire a Chartered Accountant.
These days a business service provider offers better, fast and less expensive services than a CA. Thus, it is a good idea to go for one.
The cost of the grand opening and advertising for Subway franchises in India can vary depending on the location and size of the outlet.
The average cost for a grand opening and advertising campaign ranges from Rs. 1 lacs to Rs. 3 lacs.
But, is there any Profit in Subway Franchise?