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Subway Development
930 Waterman Ave.
East Providence, RI 02914
Tel: (401) 434-3329
Fax: (401) 434-3554

Frequently Asked Questions

  • How do I become a franchisee?
    Complete an application online or request one from the development office.  You will receive a Franchise Disclosure Document.  It is your responsibility to read it.  Next, pass a basic skills test.  Then you will be ready to investigate our business opportunity with the help of the local development office.  The development office and Doctor’s Associates Inc. will determine if you meet our qualifying standards. 
  • How much is the SUBWAY® Franchise Fee?
    The initial franchise fee is $15,000. If qualified to purchase additional locations, the franchise fee is $7,500.
  • What is the term of a SUBWAY® franchise?
    The $15,000 franchise fee purchases a franchise honored for twenty years.  This franchise is renewable for an additional twenty years with no other franchise fees.
  • What are SUBWAY® restaurants Capital Requirements?
    The total investment can range from $114,800 to $258,300 for traditional locations and $84,300 to $200,100 for non-traditional locations.  This includes your franchise fee, construction and equipment costs as well as operating capital.  Figures do not include extensive exterior renovations. These amounts represent the net investment required if you are eligible for the company's equipment leasing program. If you do not select the equipment leasing program or it is not available, you should substitute the costs for Equipment Lease Security Deposit with $49,500 to $72,000. We suggest that franchisees have half of the amount in cash and finance the other half. We prefer that a franchisee does not carry a large debt service.  
  • Is lending available for the purchase of a SUBWAY® restaurant?
    SUBWAY® provides a list of lenders with experience lending to our franchisees.  The development office will provide you with lender requirements to help evaluate these lenders.  Additional sources for funding include personal savings and investment accounts, home equity loans/lines and financial assistance from family.
  • How do I secure SUBWAY® equipment?
    You may purchase SUBWAY® equipment outright with cash or with a secure loan.  The SUBWAY® franchise system also offers an equipment leasing package that requires a security deposit of 10% of the equipment costs, with a minimum of $1,000. The lease payments are for 60 months.  At the end of the lease term you may purchase the equipment for 10% of the original value.  The security deposit will be applied towards the purchase.  The equipment may be purchased at any time during the lease period using the buyout calculation schedule. For additional information or to see a sample copy of the equipment lease, please refer to the Franchise Disclosure Document.  
  • What kind of training is available to new franchisees?
    Training is for two weeks, 50% in class and 50% in store training.  All franchisees named on each franchise agreement must satisfactorily complete training at SUBWAY® World Headquarters before the store will be allowed to open.
  • How much money can I expect to make and what is my return on investment?
    In our Franchise Disclosure Document, we further explain why we cannot provide an earnings claim. We do not furnish or authorize our employees, salespeople, or Development Agents to furnish any oral or written information concerning the actual or potential sales. Actual results vary from restaurant to restaurant and we cannot estimate the results of any particular franchise. We encourage you to call SUBWAY® restaurant owners from the Franchise Disclosure Document to learn firsthand why they decided to acquire additional franchises.
  • What is my financial obligation as a SUBWAY® franchisee?
    Beyond the one time franchise fee of $15,000 you will be required to pay royalties to Doctor’s Associates Inc. of 8% on weekly gross sales.  You will be required to pay an advertising fee to the Franchisee Advertising Fund (FAF) of 4.5% on weekly gross sales.
  • Are new sites available?
    New sites are available in Rhode Island and in Massachusetts.  The Development Office maintains strong working relationships with many real estate professionals and local landlords.  New London County, CT currently has existing locations for sale.
  • How do I secure a new location?
    New locations approved for development by SUBWAY® will be provided to you during the qualifying process.  You may also submit a location that you find. We will investigate your location and provide you with analysis of its viability for development.
  • Who negotiates the lease?
    The Development Office initially negotiates the terms of a lease.  Subway Real Estate, LLC (SRELLC) will finalize the lease with the landlord and sign the master lease.
  • Do I sign the lease?
    You will sign a sub-lease with Subway Real Estate, LLC (SRELLC) under the same terms and conditions as the master lease.  You will pay rent directly to the landlord each month.
  • Can I use my contractor to build out my restaurant?
    Yes.  Our office can also recommend a contractor who is experienced with building SUBWAY® restaurants.  We suggest you secure several bids before signing a construction contract.
  • Can I build out my own restaurant?
    Many builders will allow the franchisee to assist with the build out depending on your experience and credentials.  SUBWAY® requires a licensed contractor to secure permits and oversee the project.
  • Where do I purchase food for my restaurant?
    All franchisees are required to order food from an approved vendor.  Hallsmith-Sysco is the gold standard vendor in the Dixon/Turi Territory.  Pricing, quality and transport are monitored by SUBWAY® restaurants’ Independent Purchasing Co-Op (IPC).
  • Is operational support available?
    Yes.  Each franchisee is assigned a field consultant to help you meet SUBWAY® standards of operation.  In addition, support is available from the development office, the corporate ‘help line’ as well as online through our Subway Partners network as well as online through our Subway Partners website and University of SUBWAY® courses.
  • Am I protected from over development?
    SUBWAY® has a monitoring system in place called ‘site review’ which evaluates new development in relation to existing locations to help mediate impact.
  • How do I advertise my SUBWAY®?
    Franchisees pay 4.5 % royalty to the Franchise Advertising Fund (FAF) each week.  Those funds help pay for SUBWAY® national advertising.  Approximately one percent of those funds are returned to the local FAF market to support advertising in the Dixon/Turi Territory.  Franchisees are also encouraged to advertise to their local customer base.
  • Can I sell my restaurant?
    Yes, you may sell your restaurant at any time after opening, provided the company approves the buyer.