8% royalty on gross sales plus a 4.5% advertising fee. Steps to Acquire a Resale
Corporate standards typically require a remodel every 10 years . When buying, check if a costly "Fresh Forward" update is overdue, as this can cost $50k or more and significantly impact your initial ROI. Estimated Costs & Requirements
Request 3–5 years of tax returns and sales records. Scrutinize the lease agreement for remaining options and potential rent hikes.
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.
While the purchase price for a resale is negotiated directly with the seller, you must still meet Subway's minimum financial benchmarks: $15,000. Liquid Capital: Minimum $100,000 in cash-on-hand. Net Worth: Minimum $150,000 total net worth.