Subway Franchise India — Complete Cost Breakdown, All Formats & Application Guide
The Subway franchise in India is one of the world’s most recognisable QSR opportunities — a global brand with 37,000+ outlets in 100 countries, a fresh, customisable menu, and Everstone Group’s commitment to 2,000+ outlets in India by 2031. Below is everything you need to evaluate and apply: all outlet formats, complete cost breakdowns, the 12.5% fee structure explained clearly, realistic profit estimates, eligibility criteria, and the step-by-step application process.
Want an honest review, including the Eversub conflict of interest, the global closure context, and who should not invest? Read our Subway franchise India honest review →
Franchise at a Glance
Brand | Subway |
Founded globally | 1965 — Bridgeport, Connecticut, USA |
India entry | 2001 |
Global network | 37,000+ outlets in 100+ countries |
India network | 800–1,000+ outlets across India |
India master franchisee | Eversub India Pvt. Ltd. (Everstone Group) — signed 2021 |
Global owner (2024) | Roark Capital — acquired Subway for $9 billion in May 2024 |
Franchise model | FOFO — Franchise Owned, Franchise Operated (sub-franchise under Eversub India) |
Total investment range | ₹60 lakhs–₹1.1 crores (format and location dependent) |
Franchise fee (one-time) | ₹6.5–₹10 lakhs |
Royalty fee (ongoing) | 8% of weekly gross sales |
Advertising fee (ongoing) | 4.5% of weekly gross sales |
Total ongoing fee | 12.5% of gross revenue — charged regardless of profitability |
Space required | 300–600 sq ft (kiosk/inline) to 800–1,200 sq ft (full outlet) |
Net profit margin | 15–20% (well-located, well-run outlet) |
Break-even period | 24–30 months |
Franchise agreement term | 10 years (with renewal option) |
Geographic availability | Pan India — expansion focus in Tier-1 and emerging Tier-2 cities |
Application | subway.com/en-IN/own-a-franchise | franchiseindia@subway.com |
Understanding the 12.5% Ongoing Fee — Before You Model Your Finances
Subway charges a combined ongoing fee of 12.5% of gross weekly sales — 8% royalty + 4.5% advertising. This is the highest ongoing fee structure among major QSR franchises in India. Here is what it means in practice:
Monthly Revenue | Monthly Royalty (8%) | Monthly Ad Fee (4.5%) | Total Monthly Fee | Annual Fee Paid to Subway |
|---|---|---|---|---|
₹8 lakhs | ₹64,000 | ₹36,000 | ₹1,00,000 | ₹12,00,000 |
₹12 lakhs | ₹96,000 | ₹54,000 | ₹1,50,000 | ₹18,00,000 |
₹16 lakhs | ₹1,28,000 | ₹72,000 | ₹2,00,000 | ₹24,00,000 |
₹20 lakhs | ₹1,60,000 | ₹90,000 | ₹2,50,000 | ₹30,00,000 |
These fees are charged on gross revenue — not profit. Ensure your location generates sufficient monthly revenue to absorb this fee and still produce meaningful net income after rent and staff.
Outlet Formats — All Types Compared
Format | Space | Investment | Seating | Best Location |
|---|---|---|---|---|
Kiosk / Express Unit | 150–300 sq ft | ₹40–60 lakhs | No seating — grab and go | Airports, railway stations, food courts, transit corridors — high impulse purchase footfall |
Inline Store (Standard) | 300–600 sq ft | ₹60–90 lakhs | Limited seating (6–12 covers) | Malls, corporate parks, college campuses, commercial high streets — most common Subway format in India |
Full-Format Restaurant | 600–1,200 sq ft | ₹90 lakhs–₹1.5 crores | Full seating (20–40 covers) | Premium malls, standalone high-street locations, large corporate campuses — highest revenue potential |
Non-Traditional / Captive Audience | Varies | ₹30–60 lakhs | Format-dependent | Hospital canteens, university campuses, defence establishments, factory cafeterias — captive customer base |
Complete Subway Franchise India Cost Breakdown — Standard Inline Store
Cost Head | Estimated Amount |
|---|---|
One-time franchise fee | ₹6.5–₹10 lakhs |
Interior fit-out — flooring, walls, counters, seating, Subway brand standards compliance | ₹12–20 lakhs |
Kitchen equipment — bread oven, refrigeration units, sandwich prep equipment, warming station | ₹10–18 lakhs |
Technology — POS system, digital menu boards, online ordering integration, CCTV | ₹2–4 lakhs |
Signage and branding — exterior board, interior brand elements, window graphics | ₹1.5–₹3 lakhs |
Initial inventory — bread, proteins, vegetables, sauces, cookies, beverages | ₹2–4 lakhs |
Security deposit (refundable — premises) | ₹3–8 lakhs |
Licensing — FSSAI, GST, fire safety NOC, trade licence, health clearance | ₹80,000–₹1.5 lakhs |
Staff recruitment and Subway training programme | ₹1–2 lakhs |
Working capital — 3–4 months operating costs | ₹8–12 lakhs |
Total Estimated Investment | ₹47.3–₹82.5 lakhs |
Official sources cite ₹60 lakhs–₹1.1 crores as the total investment range. Higher end reflects premium metro locations with larger deposits and extensive fit-out. Property and rental costs are additional and not included. Figures are indicative — verify current costs with Eversub India’s franchise team.
Ongoing Monthly Operating Costs
Cost Head | Kiosk | Inline Store | Full Format |
|---|---|---|---|
Rent | ₹20,000–₹80,000 | ₹40,000–₹1,80,000 | ₹80,000–₹3,00,000 |
Royalty (8% of gross revenue) | ₹24,000–₹72,000 | ₹64,000–₹1,44,000 | ₹1,20,000–₹2,40,000 |
Advertising fee (4.5% of gross revenue) | ₹13,500–₹40,500 | ₹36,000–₹81,000 | ₹67,500–₹1,35,000 |
Staff salaries — Sandwich Artists + manager | ₹20,000–₹40,000 | ₹45,000–₹1,10,000 | ₹80,000–₹1,80,000 |
Raw materials / COGS (~40–45% of revenue) | Volume-linked | Volume-linked | Volume-linked |
Electricity and utilities | ₹5,000–₹10,000 | ₹8,000–₹18,000 | ₹15,000–₹30,000 |
Packaging and consumables | ₹3,000–₹8,000 | ₹6,000–₹15,000 | ₹12,000–₹25,000 |
Technology and the internet | ₹2,000–₹4,000 | ₹3,000–₹6,000 | ₹5,000–₹10,000 |
Misc (maintenance, cleaning) | ₹2,000–₹5,000 | ₹5,000–₹10,000 | ₹8,000–₹18,000 |
Product and Margin Structure
Product Category | Gross Margin (before Subway fees) | Examples |
|---|---|---|
Footlong and 6-inch subs | 30–40% | Veggie Delite, Chicken Tikka, Paneer, Tandoori Chicken — core menu; highest volume |
Wraps and salads | 35–45% | Wraps across protein options; salad bowls — premium positioning, growing demand |
Beverages | 50–65% | Fountain drinks, bottled water, juices — highest margin category |
Cookies and desserts | 45–60% | Freshly baked cookies — strong impulse purchase; excellent margin |
Combo meals | 25–35% | Sub + drink + cookie combos — lower margin but higher transaction value |
Breakfast items | 35–45% | Egg and cheese subs, breakfast wraps — growing segment; captures morning footfall |
Note: Gross margins above are before the 12.5% ongoing fee deduction. Effective net margin available after Subway’s fee is 17.5–52.5% on individual products, before rent and staff.
Revenue and Profit Estimates by Format
Format / Scenario | Monthly Revenue | Net Monthly Profit | Break-even Period |
|---|---|---|---|
Kiosk — transit hub (high footfall) | ₹6–9 lakhs | ₹30,000–₹1,05,000 | 18–24 months |
Inline Store — corporate park | ₹12–18 lakhs | ₹1,00,000–₹2,80,000 | 24–30 months |
Inline Store — premium mall | ₹10–15 lakhs | ₹30,000–₹1,80,000 | 28–36 months |
Full Format — standalone high street | ₹15–25 lakhs | ₹1,50,000–₹4,00,000 | 24–36 months |
Non-Traditional — captive campus | ₹8–14 lakhs | ₹80,000–₹2,00,000 | 18–24 months |
Premium mall format shows wider variance due to high rent compressing margins despite good revenue. Corporate park format consistently shows the best unit economics due to high lunch-rush volume and predictable daily covers.
City-Wise Investment Estimates
City / Region | Inline Store Total Investment | Monthly Rent (400 sq ft) | Monthly Revenue Needed to Break Even |
|---|---|---|---|
Mumbai / Delhi | ₹85 lakhs–₹1.2 crores | ₹80,000–₹2,00,000 | ₹14–18 lakhs/month minimum |
Bangalore / Hyderabad / Pune | ₹75 lakhs–₹1.05 crores | ₹60,000–₹1,50,000 | ₹12–15 lakhs/month minimum |
Chennai / Ahmedabad / Kolkata | ₹65–₹95 lakhs | ₹45,000–₹1,20,000 | ₹10–13 lakhs/month minimum |
Tier-2 cities (Jaipur, Indore, Lucknow, Surat) | ₹60–₹85 lakhs | ₹25,000–₹70,000 | ₹8–11 lakhs/month minimum |
Eligibility Criteria
- Investment capacity: ₹60 lakhs–₹1.1 crores liquid capital for an inline store plus 3–4 months’ working capital reserve; total readiness of ₹75 lakhs–₹1.3 crores recommended
- Prior experience: Business or restaurant experience strongly preferred — Subway provides comprehensive training, but the operational complexity of QSR management rewards prior experience
- Space: 300–600 sq ft for standard inline store; 600–1,200 sq ft for full-format restaurant; ground floor or visible mall/food court location with adequate customer flow
- Location: High-footfall area — corporate parks, malls, campuses, transit hubs, commercial high streets; daily footfall must support a ₹10+ lakhs monthly revenue target
- Financial disclosure: Bank statements and financial documentation demonstrating investment capacity and business stability are required during the application
- Geographic availability: Pan India through Eversub India’s franchise programme — expansion focus on Tier-1 and large Tier-2 cities
Support Provided by Subway India (Eversub)
- Subway University training programme: Comprehensive initial training covering sandwich preparation, food safety (HACCP compliance), customer service, inventory management, and store operations — for franchisee and all staff before opening
- Supply chain: Centralised ingredient supply — fresh vegetables, proprietary sauces, proteins, and baked goods — ensuring consistency across all India outlets
- Store design and fit-out: Subway’s global brand standards manual with detailed specifications for layout, colour, signage, equipment placement, and customer flow design
- Technology platform: POS systems, inventory management, digital ordering, and delivery platform integration — Subway provides tech infrastructure and ongoing updates
- Marketing support: National TV, digital, and social media campaigns funded by the 4.5% advertising contribution; local store marketing toolkit provided
- Delivery platform management: Swiggy and Zomato integration support; menu photography and listing optimisation
- Ongoing field support: Regular store audits and quality checks from Eversub’s field operations team; operational guidance and corrective support
- Multi-outlet growth pathway: Successful franchisees who maintain quality standards and revenue targets are eligible to apply for additional outlets
Pros and Cons
Strengths
- Global brand recognition — 37,000+ outlets in 100 countries; instant consumer trust worldwide
- Health-conscious positioning — fresh ingredients, customisable, lower calorie vs burger chains; growing Indian urban health awareness plays directly into this
- Operationally simple — no cooking; fresh assembly; standardised ingredients; simpler kitchen requirements than pizza or burger franchises
- Smaller space requirement (300–600 sq ft) vs most QSR formats — more location options available
- Strong delivery platform revenue — Subway’s fresh, customisable format performs exceptionally well on Swiggy and Zomato
- 10-year franchise agreement — operational stability over a long term
- Everstone’s India expansion ambition (2,000+ outlets) drives continued brand investment and marketing
- Roark Capital’s global QSR experience (Arby’s, Jimmy John’s, Dunkin’) brings operational expertise to the Subway turnaround
Risks
- 12.5% ongoing fee on gross revenue — highest among major QSR franchises in India; charged regardless of profitability
- Eversub India directly competes with sub-franchisees by opening company-owned stores — territorial exclusivity must be explicitly negotiated in writing
- Subway globally closed 631 net US locations in 2024 — ongoing domestic contraction raises questions about brand direction under Roark Capital
- Menu changes — India menu customisation reduced from 100% to 70%; menu changed multiple times in 2024, causing operational disruption for franchisees
- Mandatory promotional participation — aggressive discounting campaigns can erode per-transaction margins significantly
- High staff turnover — QSR industry standard; continuous hiring and training burden
- Revenue-dependent profitability — break-even requires consistent ₹10+ lakhs monthly; low-volume locations are financially unviable under the fee structure
- Periodic remodelling obligations — store upgrade requirements during the 10-year term are borne by the franchisee
How to Apply — Step by Step
- Visit the official Subway India franchise page at subway.com/en-IN/own-a-franchise and complete the initial franchise enquiry form
- Initial application screening — Eversub India’s franchise development team reviews your profile, investment capacity, and proposed location for initial suitability
- Discovery Day/franchise presentation — shortlisted applicants are invited to a Discovery Day where the full franchise model, investment requirements, fee structure, and support programme are presented in detail
- Financial verification — submit bank statements, ITR filings, and other financial documentation demonstrating investment capacity and business stability
- Location assessment — Eversub India evaluates your proposed location for footfall quality, visibility, accessibility, competition density, and revenue potential
- Territorial exclusivity discussion — specifically ask for written confirmation of your territorial exclusivity radius and whether any Eversub company store is planned in your vicinity; get this confirmed in writing before proceeding
- Franchise agreement review and signing — review the 10-year agreement carefully; confirm royalty rate (8%), advertising fee (4.5%), mandatory promotion participation terms, remodelling obligations, and exit conditions; have the agreement reviewed by an independent lawyer
- Pay franchise fee — ₹6.5–₹10 lakhs one-time fee on agreement signing
- Subway University training — mandatory comprehensive training for you and all staff at Subway’s India training facility before store opening
- Store fit-out and equipment installation — per Subway’s brand standards; typically takes 8–12 weeks from agreement signing to store readiness
- Regulatory approvals in parallel — FSSAI food licence, GST registration, fire safety NOC, trade licence, health clearance (4–8 weeks)
- Quality audit and brand approval — Eversub conducts a pre-opening audit to confirm brand standard compliance before allowing the store to open as a Subway
- Grand opening — with Subway’s marketing support, local promotional materials, and field team guidance
Official Subway India Franchise Contact:
Website: subway.com/en-IN/own-a-franchise
Master Franchisee: Eversub India Pvt. Ltd. (Everstone Group)
India Headquarters: Bangalore, Karnataka
Documents Required
- Identity proof — Aadhaar card and PAN card
- Address proof — electricity bill or bank statement
- Passport-size photographs
- Property documents — lease agreement or sale deed for proposed store; NOC from landlord or mall management
- Bank statements (last 6–12 months) demonstrating investment and working capital capacity
- ITR filings (last 2–3 years) demonstrating financial standing
- Prior business experience documentation — GST returns, company registration, or relevant F&B experience
- Business registration documents — company, LLP, or proprietorship
- FSSAI food licence (obtained post-approval)
- GST registration (obtained post-approval)
- Fire safety NOC from local fire department (post-approval)
- Health and sanitation clearance from the municipal authority
- Trade licence from the local municipal authority
- Signed franchise agreement with Eversub India Pvt. Ltd.
Frequently Asked Questions
What is the total investment for a Subway franchise in India?
Total investment ranges from ₹60 lakhs to ₹1.1 crores for a standard inline store, including the franchise fee (₹6.5–₹10 lakhs), interior fit-out, kitchen equipment, technology, branding, initial inventory, security deposit, licensing, staff training, and working capital. Kiosk formats require ₹40–60 lakhs. Full-format restaurants require ₹90 lakhs–₹1.5 crores. Property and rental costs are additional.
What are Subway’s ongoing franchise fees in India?
Subway charges 8% royalty on weekly gross sales plus 4.5% advertising contribution on weekly gross sales — totalling 12.5% of gross revenue. These fees are charged on gross sales regardless of whether the outlet is profitable. This is the highest ongoing fee structure among major QSR franchises in India. At ₹12 lakhs monthly revenue, you pay ₹1.5 lakhs/month to Subway before covering rent, staff, or ingredient costs.
Who manages Subway franchises in India?
Subway India operates through a 10-year master franchise agreement signed in November 2021 with Everstone Group — specifically through Eversub India Pvt. Ltd. Eversub both directly operates approximately 40% of India’s Subway stores and grants sub-franchise rights to independent investors for the remaining 60%. Subway globally is owned by Roark Capital, which acquired the brand for $9 billion in May 2024.
Is prior F&B experience required?
No formal F&B experience is required. Subway provides comprehensive training through Subway University. However, prior QSR, retail, or food business experience is strongly advantageous — the combination of managing staff turnover, fresh ingredient ordering, and the 12.5% fee structure demands operational discipline that rewards experience. First-time food business investors should seriously consider partnering with an experienced operations manager.
What is the minimum space needed for a Subway franchise?
Minimum 300 sq ft for a kiosk or express unit — 400–600 sq ft for a standard inline store. Full-format restaurants require 600–1,200 sq ft. Subway’s smaller space requirement compared to most QSR franchises is a genuine advantage — it opens more viable location options, including food courts, corporate park kiosks, and smaller commercial spaces.
How long does it take to break even on a Subway India franchise?
Break-even typically takes 24–30 months for a well-located inline store generating ₹12–18 lakhs monthly. Corporate park locations with strong lunch-rush volume tend to break even faster. Premium mall locations with high rent can take 30–36 months despite good revenue, as the combined rent and 12.5% fee structure compresses margins significantly.
What territories are available for the Subway franchise in India?
Subway India, through Eversub, has franchise territories available pan-India. The expansion focus is on Tier-1 cities and select Tier-2 markets. Before selecting a location, specifically ask Eversub whether any company-owned (Eversub) Subway is planned within your proposed territory — the Eversub conflict of interest documented in 2024 means this verification is essential before committing to any location.
Disclaimer: Investment figures, fee structures, and profit estimates are indicative, based on publicly available data including Subway’s official franchise documentation, Everstone Group’s press releases, The Ken investigation (September 2024), Restaurant Business data, and multiple published sources as of May 2026. Verify all current terms directly with Eversub India / Subway India’s official franchise team before making any financial commitment. NextWhatBusiness does not receive commission from this listing.