In India due to the increasing urbanization, expanding young population and rising disposable income, the quick serve restaurant (QSR) market is growing very fast.
So using this opportunity you can enter the QSR business by taking franchise of world’s leading restaurant chain like Subway.
In this article we will give complete guide related to the Subway franchise, which includes subway franchise cost, profit margin, licenses and documents required, space required, how to apply for the dealership, etc.
It is always safer to start a franchise outlet than to open a new one. Famous franchises are established brands and their business model has already been tested. So the risk factor is very low.
Why choose Subway Franchise?
Founded in 1965, Subway is an American multinational quick-service restaurant chain. After the success of the first outlet, Subway started in first franchise outlet in 1974.
Today the brand is amongst the largest restaurant chains in the world, with 40,000+ outlets in 100+ countries. Subway serves sandwiches, wraps, salads, and bowls in its restaurants.
Subway entered India in 2001, with its first franchise outlet in Saket, New Delhi. Today it has 600+ franchise outlets all over India. It has a plan to add 2000 more outlets in India and South Asian countries in the coming 10 years.
In India, a private investment firm called Everstone Group has a Master franchise agreement with Subway brand. Everstone Group will provide the sub-franchise of the brand apart from running its own outlets.
Note that Everstone Group is a well-established firm with vast experience in the Quick service restaurant business. It also has the master franchise of Burger King India.
Licenses and Registrations required
These are the licenses and documents required to start a Subway franchise in India.
- Business Registration – sole proprietorship/LLP/Private Limited
- FSSAI Licence
- Trade Licence – from the local municipality
- Shop and Establishment Registration
- GST Registration
- NOC from the local fire department
- Eat House License – from the city police commissioner
- Certificate Of Environmental Clearance from MOEF
- Signage license from Municipality
If you lack capital, then you can approach banks like SIDBI for a business loan.
Space required to start the franchise
To start a Subway outlet in India, you need a commercial space of around 1,000 to 1,500 square feet. Make sure that the outlet is in a prominent location that matches the Subway guidelines.
If you do not own a commercial place, you can lease the outlet. Note that, all leases are corporately held and you will receive a sublease.
Subway franchise Cost
The total investment required to start a Subway franchise in India is around 80 lakhs with 1,000 to 1,500 square feet of commercial space that matches Subway guidelines.
The total investment may vary slightly depending upon the size of your outlet and the location.
Here is the breakdown of the above-said amount,
| Franchise Fee | 6,50,000 |
| Real Property | 5,00,000 |
| Outlet Improvements / Shop Interior woks | 8,50,000 |
| Machines & Equipment | 4,50,000 |
| Security System | 60,000 |
| Transpotation Charges | 50,000 |
| Signage boards | 75,000 |
| Inventory to start | 1,50,000 |
| Business Insurance | 25,000 |
| Supplies | 35,000 |
| Training Charges | 100,000 |
| Legal Support | 50,000 |
| Marketing | 1,00,000 |
| Miscellaneous Expenses | 1,50,000 |
| Backup Fund | 4,00,000 |
The monthly expenses include employee salary, raw materials, utility bills, etc.
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Profit margin in Subway franchise
Subway charges a royalty fee of 12.5% on the gross sales. So deducting all the expenses and the royalty, you can expect a profit margin of up to 8% on your annual sales.
How to get a Subway franchise?
In India, Everstone Group has a Master franchise agreement with the Subway brand. So to open a new Subway franchise, Everstone Group will provide the sub-franchise of the brand.
For the new franchise, you can contact Subway by filling out their franchise application form available on their official website.
After filling out the form above, the team will contact you if you meet their requirements.
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FAQ about Dealership
How much investment is required for the Subway franchise?
You need an investment of around 80 lakhs with a commercial space.
Shop space required for the Subway franchise?
The space required is around 1,000 to 1,500 square feet.
Profit margin in Subway franchise?
You can expect a profit margin of up to 8% on the annual sales.
How to contact Subway for the franchise?
You can contact Subway for a franchise by filling out the form given in the article.
I hope this article has resolved many of your doubts related to the Subway franchise. If you have any suggestions feel free to mention them in the comment box below.
