Subway franchise Cost in India: Requirements, Profit, Applying Process
If you want to start your own business in the food industry then there are various options are available in the market. You can start your own business or can take a franchise from any popular brand. An already set-up business or popular brand has many advantages then start a new journey. In this blog we are going to discuss Subway franchise and how to get Subway franchise in India.
Subway expects to develop its 2000 franchise outlets in various Indian locations. To meet this target the company is searching for hopeful business owners to grow the Subway franchise in India and walk on the path to success. In India the subway franchise fee is fewer so, any person can start his own Subway franchise business. This is an excellent chance for entrepreneur searching for low-cost franchise in India. Utilizing the right techniques, the Subway franchise can help any entrepreneur to earn a good amount. Keep reading this blog to know more of Subway.
Company History & Details
Subway is an American fast food company established by Peter Buck and Fred Deluca in 1965. It was established on 28th August 1965 in Bridgeport, Connecticut, USA. Formerly it was named Pete’s Super Submarines, later it was renamed Subway in 1968. It is managed by a holding organization called Doctor’s Associates. This organization regulates the whole Subway chain of restaurants in the world.
As of June 2021, Subway introduced its Quick Service Restaurant (QSR) business model to India, and since then, it has grown exponentially. In just 17 years, Subway Franchise in India expanded to 500 franchise outlets in 68 Indian cities, making it one of the most successful QSR franchises in India. The first Subway outlet was opened in Delhi.
|by Peter Buck and Fred Deluca in 1965
|Milford, Connecticut, U.S and New Delhi in India
|Subs, sandwiches, and franchising
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Benefits of Subway franchise:
The Subway franchise is a low-cost investment to cooperate with the fast food chain. It is a secured process of earning with a good return on investment. Subway franchise is a low risk venture. Here are some benefits to choose Subway franchise-
- Subway is the second largest fast food chain in the world after McDonald’s.
- Subway offers all fresh and own bread to the customers.
- Subway is one of the leading brand has more than 44, 210 stores in 110 countries in the world. In India there are more 500 restaurants in 70 different cities.
- Subway is the best and fastest growing fast food franchise in India.
- It provides no cooking, frying and grilled meals.
- The company is flexible with the franchise regarding space requirements.
- Subway provides detailed training and support to the franchise from Subway franchise headquarters, franchise development agents and field executive staffs.
- The company provides all types of marketing and promotional support to the franchise.
Eligibility for a Subway franchise:
- The entrepreneur must follow all terms and conditions of Subway.
- You must have proper Investment to open this franchise.
- Must have a proper space in a good location.
- The entrepreneur must have a knowledge of running a outlet.
Requirements for a Subway franchise:
- Area requirements: To open a Subway store requirement of minimum area is 300-600 square feet.
- Required Skill: Minimum skill requirement is to pass the skill test consisting of math and English based knowledge. It is mandatory by Subway or all of its franchise owners.
- Required financial capability to invent in business, should basic educational and entrepreneurial background.
- Manpower requirement: In a Subway shop the minimum manpower of 8 employees is required
Subway franchise Cost in India:
The cost of starting a Subway franchise in India can vary depending on a variety of factors such as location, store size, and equipment needed. However, according to Subway India’s official website, the initial investment required to start a Subway franchise in India is approximately Rs. 70 lakhs to Rs. 1.5 crores.
- Franchise Fee: The initial franchise fee for a Subway franchise in India is Rs. 6.5 lakhs.
- Investment in Store Setup: The cost of setting up a Subway store in India can range from Rs. 50 lakhs to Rs. 1.2 crores, depending on the location and size of the store. This includes the cost of equipment, furniture, fixtures, and signage.
- Rent and Security Deposit: The cost of rent and security deposit will depend on the location of the store.
- Working Capital: This includes the cost of inventory, staff salaries, and other operational expenses.
- Marketing and Advertising: The cost of marketing and advertising will vary depending on the location and competition in the area. But according to the company website they charge 4.5% charge.
- Royalty fee 3.5% – 8%(of total sales)
The above investment may vary and depending on the size of the outlet, area, city and interior designing of the store. So, for more accurate details contact to the company directly.
Space Required for Subway Outlet:
The area of the Subway franchise in India is one of the main factors in the franchise along with your performance how well you can maintain the business. Subway franchise has both traditional and non-traditional areas for their stores. A traditional area includes any street corner, in a shopping center. The non-traditional area implies a place near a hospital, airport, bus stand or rail stops, school or college etc. A proprietor can open a store any places, but he must research a lot for their competitors.
A minimum space of 300 to 600 square feet with proper noticeable facing is expected for this Business. If you are taking your space in rent then remember that the rental will be high in prime areas.
Documents & Licence:
- Before you can start a Subway franchise, you’ll need to register your business with the Registrar of Companies (ROC) and obtain a certificate of incorporation.
- ID Proof:- Aadhaar Card , Pan Card , Voter Card
- Address Proof:- Ration Card , Electricity Bill ,
- Bank Account with Passbook
- Photograph Email ID, Phone Number,
- Other Document
- Fire safety certificate
- GST Number
- Standard franchise agreement
- FSSAI Licence
- Rental agreement
- Lastly, you’ll need to obtain insurance coverage for your business.
Subway franchise Profits and Margin:
Subway is a popular franchise business in the food industry that offers a range of sandwiches and salads to its customers. If you are interested in investing in a Subway franchise, it is important to know about the profits and margin. Profits and margin for Subway franchise can vary depending on many factors, such as location, competition, and operating costs. However, on average, a Subway franchise can generate a net profit margin of 6% to 8%. This means that for every $100 in sales, a franchisee can expect to earn $6 to $8 in net profit.
Apart from this, the Subway franchise in India likewise charges 3.5% to 8% of the yearly turnover, including the advertisement and royalty charges. The franchise in India of any type of store can earn (15)30% to 45% profit every year.
Company charges royalty fee around 8% on gross sales, while marketing fees can be up to 4.5%. The cost of inventory and supplies can vary based on factors such as the size of the store and the number of employees, but generally, it can be around 30% to 35% of gross sales.
Return On Investment:
The ROI or Return on Investment for a Subway franchise in India can vary depending on many factors such as the location of the franchise, operating costs, and the franchisee’s ability to manage the business effectively.
According to industry estimates, the average ROI for a Subway franchise in India is around 18-24 months. This means that a franchisee can expect to break even and start earning profits after around 1.5-2 years of operation.
Training and Support provided by Subway to Franchisees:
Subway always holds the hands of their franchise and provides all types of support. The assistance of Subway to their franchise is as follows-
- The company provides 2 weeks detailed training program that covers all aspects of the company to the franchise owner and manager.
- The company helps in making the floor plans and designs of the outlet and the outlet designed that covers all requirements.
- The company helps in interior designing of the outlet. They guide the designers to maintain the Subway look and feel.
- Subway check, evaluates, inspects and approves the location with you.
- Subway provides guidance, vendor lists, installation of machines and equipments to set up the store.
- Subway provides manuals which cover all required topics that used in business.
- The local field agent assists, guides and helps you in all operational matters, they support in starting the store.
- A franchise coordinator is assigned for the business owner. He is available all time to support and guide you.
- Subway supports in joining the specialized services of a staff nutritionist, sandwich artists, executive chef, product development team, baking experts etc.
- Subway consistently provides different learning materials like Emails, DVD’s, newsletters, voice mails, seminars and connected with the franchise partner always.
- Subway provides all types of marketing and promotional activities locally, regionally and nationally.
How to apply for the Subway Franchise in India ?
If you want to open a Subway store by taking its franchise then here are the step by step guide to take this franchise-
- At first contact Subway for the franchise brochures where all franchise details, offers and agreement are mentioned.
- Then go to the official website of the Subway India www.subway.com and fill up the franchise application form online and submit the form.
- If you want to fill-up the form offline then download the form from website, fill the form and submit the form to Subway head office in India. Address is given below- B 11/1 of the Okhla Industrial Area- Phase II, New Delhi, 110020.
- You can also call them on 011 41708082 or 41754035 or email them at firstname.lastname@example.org.
- Contact and meet the local Subway Field Development Agent.
- After that you will get a Subway franchise papers. Carefully read the agreement and all clauses containing all necessary points.
- It is good if you can put your own fund. If it is not possible then you should get finance from the banks or financial investors.
- After reading the documents properly, if you are ready to proceed then sign the agreement with Subway authority India and make the payment of their franchise fee.
- Talk to the coordinator for further details; use their training and support to launch your new Subway store.
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Necessary things to remember while applying for the Subway franchise
- When you register as a Subway franchisee and sign the agreement, going forward is the only option. Thus, signing the contract after when you will be sure. Here are some important things you must know before taking the franchise. You, as a franchisee should:
- Should have experience in the F&B business.
- Understand your investment capacity. You can invest your own fund or take loans from a bank.
- Should be very serious and dedicated towards the franchise business.
- Be enthusiastic about getting the fundamental abilities, skills and planning properly to take up the unexpected difficulties that could jump up.
- Should have extreme confidence in the plan of action and the brand.
- Research as much as possible prior, know about the competition, market trend, and know your targeted customers segment.
- Be extra sure about your outlet area, as it is essential to your business success.
Subway Franchise Contact Details:
If you want to take Subway Franchise and you have any query related this franchise then you may contact to the company via given details as I’ve mentioned below:
Address: Subway Systems India Pvt Ltd.B 11/1, Okhla Industrial Area, Phase II, New Delhi -110020
Telephone: 011 41754035, 011 41708082.
Website India: www.subway.com/en-IN
Website US: www.subway.com
Email ID: email@example.com
Subway franchise in India can be a profitable business venture with the potential for high ROI. However, it is important to carefully consider the initial investment and ongoing costs, as well as the necessary licenses and documentation, before committing to the franchise. Additionally, franchisees should be prepared to undergo rigorous training and adhere to strict standards set by Subway to ensure the success of their business. With proper planning, management, and support from the franchisor, a Subway franchise can be a rewarding opportunity for entrepreneurs in India.
Now you have gone through this article, you can understand that it is so simple to begin with the Subway franchise in India and almost everything is taken care by Subway. To know all the aspects you might be agreed that it is a good opportunity for an entrepreneur to proceeds with the Subway. But before that you can get adequate information of Subway India. After being confident and proper knowledge then you must invest in any business. Thank you for reading the article.
FAQ(Frequently Asked Question):
Q. What is a Subway franchise ?
Ans: Subway franchise is a business model that allows individuals to own and operate a Subway restaurant under the brand name, using their proven business systems and products.
Q. Who founded the Subway Restaurants ?
Ans: In 1965, Subway Restaurants was founded by 17 year-old high school graduate Fred DeLuca, along with family friend Dr. Peter Buck. The first restaurant opened in Bridgeport, Connecticut, USA in 1965 and was called Pete’s Super Submarines. The first franchised Subway unit opened in Wallingford, Connecticut.
Q. How much does it cost to open a Subway franchise ?
Ans: The cost to open a Subway franchise may varies depending on the location and the size of the restaurant. However, the initial investment can range from 50 lakh to 1.2 crore, including franchise fees, equipment, and inventory.
Q. What are the necessary documents required for a franchise ?
Ans: For a franchise following documents are required-
- Business registration certificate
- FSSAI registration
- Trade license
- GST registration
- Shop and establishment registration
- No objection certificate
- Eat house certificate
Q. What is the role of a development agent ?
Ans: A development agent is assigned by the company; he is experienced to manage the franchise. The development agent helps the franchise in many ways. He guides, manages and supervises the operational work. The DA helps how to deal with customers, presentation, time to time training etc.
Q. Can I own multiple Subway franchises ?
Ans: Yes, you can own multiple Subway franchises as long as you meet the company’s requirements and qualifications for each individual location.
Q. What is the Subway franchise fee in India ?
Ans: The franchise fee of Subway in India is 6,50,000
Q. What are the unique selling points of Subway franchise?
Ans: Subway always justifies its tagline “Eat Fresh” and serves fresh foods to the customers. Another unique selling point is Subway is the healthier fast food restaurant chain among others. It maintains the health and tastes both that is hardly found in fast food.
Q. What support does Subway offer to franchisees ?
Ans: Subway provides extensive support to franchisees, including site selection, store design and construction, training programs, marketing and advertising, ongoing operational support, and access to the company’s purchasing network.
Q. What are the procedures to apply for a Subway franchise?
Ans: The first process is- you can visit the website of Subway and fill up the online form. After submission the franchise team will contact you and guide you for further process.
- The second process is- you can contact directly in provided contact number and email address, draft your question with regard to the franchise application and go step wise.
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