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Subway Fdd Franchise Disclosure Document by Mathias Beike Click here for Free Registration of Subway Fdd Franchise Disclosure Document Book Rated from 86 votes Book ID: B72DC0DECBDC96DE00FB9B383EBD3BE4.

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To buy a franchise with Subway®, you'll need to have at least liquid capital of $40,000 and a minimum net worth of $80,000. Franchisees can expect to make a total investment of $150,050 - $328,700.

A percent-based royalty can be beneficial for the franchisee when they are first starting the business when their sales are low. In the long run, a percentage-based royalty structure gives both the franchisor and franchisee the common motivation to increase sales volumes.

A royalty fee is an ongoing payment that is collected by the franchisor on a monthly or weekly basis. The idea behind franchise royalty fees is that franchisors do well when franchisees do well. Royalty fees typically range between 4% to 12%.

The failure rate for the Subway franchise in 2021 was nearly 10% and over the past 3 years, 20%+.

How much are the royalty and advertising fees? Subway® Franchisees pay 12.5% every week (gross sales minus the sales tax); 8% goes toward the franchise royalties and 4.5% goes towards advertising.

In addition to the initial fee, franchisees are also required to pay an ongoing royalty fee of 8% of the restaurant's gross sales. This fee is paid weekly, and it covers the cost of using the Subway trademark and other services provided by the franchisor, including marketing and training.

Royalties are the funds the franchisee pays to use something that someone else created (in this case, the franchise business idea and brand). Franchisees create sales, and a portion of that is paid to the franchisor as a royalty fee in exchange for permission to use its proprietary trademarks and processes.

Term of Agreement and Renewal: The length of the franchise term is 20 years, with the exception of satellite restaurants and the school lunch program.

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© Copyright 1997-2025
airSlate Legal Forms, Inc.
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Form Packages
Adoption
Bankruptcy
Contractors
Divorce
Home Sales
Employment
Identity Theft
Incorporation
Landlord Tenant
Living Trust
Name Change
Personal Planning
Small Business
Wills & Estates
Packages A-Z
Form Categories
Affidavits
Bankruptcy
Bill of Sale
Corporate - LLC
Divorce
Employment
Identity Theft
Internet Technology
Landlord Tenant
Living Wills
Name Change
Power of Attorney
Real Estate
Small Estates
Wills
All Forms
Forms A-Z
Form Library
Customer Service
Terms of Service
DMCA Policy
About Us
Blog
Affiliates
Contact Us
Privacy Notice
Delete My Account
Site Map
All Forms
Search all Forms
Industries
Forms in Spanish
Localized Forms
Legal Guides
Real Estate Handbook
All Guides
Prepared for You
Notarize
Incorporation services
Our Customers
For Consumers
For Small Business
For Attorneys
Our Sites
US Legal Forms
USLegal
FormsPass
pdfFiller
signNow
airSlate workflows
DocHub
Instapage
Social Media
Call us now toll free:
1-877-389-0141
As seen in:
  • USA Today logo picture
  • CBC News logo picture
  • LA Times logo picture
  • The Washington Post logo picture
  • AP logo picture
  • Forbes logo picture
© Copyright 1997-2025
airSlate Legal Forms, Inc.
3720 Flowood Dr, Flowood, Mississippi 39232