8% royalty on gross sales plus a 4.5% advertising fee. Steps to Acquire a Resale
You must be approved by the local DA, who manages the territory and oversees the transfer process. buying an existing subway franchise
Request 3–5 years of tax returns and sales records. Scrutinize the lease agreement for remaining options and potential rent hikes. 8% royalty on gross sales plus a 4
High sales can be misleading if they are driven by price hikes rather than customer volume. Experienced owners suggest looking for stores with at least $400k in annual sales to ensure you aren't just working to pay the 12.5% combined royalty and advertising fees. Scrutinize the lease agreement for remaining options and
Start by filling out the Subway Franchise Interest Form to gain access to the Franchise Disclosure Document (FDD).
Buying an existing Subway franchise offers a shortcut to ownership with a "built-in" customer base, but it requires deep financial scrutiny and a clear understanding of current corporate shifts. Unlike opening a new store, buying a resale gives you access to years of historical P&L statements and immediate cash flow. Financial & Strategic Checklist