Subway Franchise Cost vs Other Fast-Food Franchise Investments

Aditya Singh
3 days ago
4 min read

The fast-food industry in India has grown into a billion-dollar sector, attracting global brands and local players alike. Entrepreneurs looking to invest in this booming space often consider Subway Franchise Cost as a starting point due to its affordable investment structure compared to giants like McDonald’s, KFC, or Domino’s. But how does it really compare with other fast-food franchise investments?

In this detailed blog, we’ll break down the Subway Franchise Cost, compare it with competitors, discuss profitability, and answer frequently asked questions. By the end, you’ll have a clear picture of whether Subway is the right opportunity for you in 2025.

Why Focus on Subway Franchise Cost?

Understanding the Subway Franchise Cost is crucial for aspiring food entrepreneurs. Subway is among the few global brands that offer flexibility, relatively lower setup costs, and multiple business models suited for Indian markets. While other fast-food giants require huge investments, Subway provides a comparatively accessible entry point into the QSR (Quick Service Restaurant) segment.

Subway Franchise Cost in India

The cost of setting up a Subway franchise in India depends on the type of outlet, location, and size. On average, the total investment required ranges between ₹50 lakhs – ₹90 lakhs.

Cost Breakdown:

Franchise Fee: ₹6 – ₹7 lakhs (approx.)
Store Setup & Interiors: ₹25 – ₹40 lakhs
Equipment & Kitchen Setup: ₹10 – ₹15 lakhs
Licenses & Registrations: ₹2 – ₹3 lakhs
Initial Working Capital: ₹5 – ₹10 lakhs
Marketing & Branding: ₹3 – ₹5 lakhs

👉 Total Investment: ₹50 lakhs – ₹90 lakhs

Ongoing Costs:

Royalty Fee: 8% of gross sales
Advertising Contribution: 4.5% of gross sales

These recurring fees ensure that franchisees benefit from Subway’s strong brand presence, marketing campaigns, and continuous operational support.

Subway Franchise Cost vs Other Fast-Food Brands

To make a better decision, it’s essential to compare Subway’s investment with other popular fast-food franchise opportunities in India.

Brand	Franchise Cost (₹)	Franchise Fee (₹)	Royalty Fee	Breakeven Timeline
Subway	50 – 90 Lakhs	6 – 7 Lakhs	8% + 4.5% ads	2 – 3 years
McDonald’s	6 – 14 Crores	30 Lakhs	8 – 10%	4 – 5 years
Domino’s Pizza	1.5 – 4 Crores	25 Lakhs	5.5%	3 – 4 years
KFC	1 – 2 Crores	30 Lakhs	6 – 7%	3 – 5 years
Pizza Hut	90 Lakhs – 2 Crores	25 Lakhs	6%	3 – 4 years

👉 As seen in the table, Subway offers one of the lowest-cost global fast-food franchises in India, making it highly appealing for entrepreneurs with mid-level budgets.

Profitability of Subway Franchise

Profitability depends on factors like location, footfall, and operational efficiency.

Average Monthly Revenue: ₹10 – ₹20 lakhs (high-traffic areas)
Profit Margins: 15% – 20%
Net Monthly Profit: ₹1.5 – ₹3 lakhs
ROI Period: 2 – 3 years

Subway’s flexible menu, vegetarian-friendly offerings, and growing demand for healthier fast-food options give it a unique advantage in India’s competitive food market.

Advantages of Investing in a Subway Franchise

Affordable Entry Point: Lower franchise cost compared to competitors.
Healthy Food Trend: Subway aligns with the demand for healthier fast-food options.
Strong Brand Recognition: Established presence in more than 100 countries.
Training & Support: Subway provides training for franchisees and staff.
Customizable Outlets: Models include mall kiosks, standalone stores, and food courts.

Challenges of Subway Franchise in India

High Competition: Faces strong competition from Domino’s, McDonald’s, and KFC.
High Royalty Fee: Combined royalty and ad fee (12.5%) reduces net profit.
Consumer Perception: Subway is sometimes seen as premium-priced compared to local eateries.
Operational Management: Requires consistent quality and staff training.

ROI Comparison: Subway vs Other Brands

Subway: ROI within 2 – 3 years due to moderate investment and strong demand.
McDonald’s: Higher brand recall but takes 4 – 5 years to recover huge investment.
Domino’s: Strong delivery network, ROI in 3 – 4 years.
KFC & Pizza Hut: Profitable but require large investments.

👉 Subway provides one of the fastest ROI timelines among international fast-food chains in India.

Step-by-Step Process to Get a Subway Franchise

Research and Apply: Visit Subway’s official website and fill out the franchise inquiry form.
Approval and Discussion: Subway evaluates eligibility and discusses investment capacity.
Franchise Agreement: Pay the franchise fee and sign the agreement.
Location Selection: Choose a high-footfall area like malls, IT hubs, or busy streets.
Store Setup & Training: Subway assists with store design, branding, and staff training.
Launch: After approvals and setup, the outlet is ready to operate.

Conclusion

The Subway Franchise Cost is significantly lower than many other fast-food giants in India, making it an attractive option for entrepreneurs who want to enter the QSR sector without spending crores. With its health-oriented menu, strong brand reputation, and relatively quick ROI, Subway stands out as one of the most viable investments in the food franchise space.

That said, investors should also research beyond the fast-food sector. Exploring opportunities like the List of Government Franchises can provide alternative business ideas with potentially lower risks and strong institutional support.

FAQs

Q: What is the total Subway Franchise Cost in India?

The total cost ranges between ₹50 lakhs – ₹90 lakhs, depending on location and outlet size.

Q: How much profit can a Subway franchise make monthly?

Franchisees can earn a net monthly profit of ₹1.5 – ₹3 lakhs after deducting expenses.

Q: How long does it take to recover the investment?

Typically, Subway offers an ROI period of 2 – 3 years.

Q: What is the royalty fee charged by Subway?

Subway charges 8% royalty fee plus 4.5% advertising contribution.

Q: Is Subway a better investment than Domino’s or McDonald’s?

For mid-level investors, Subway is more affordable and has a quicker breakeven compared to McDonald’s or Domino’s.