Here's what it costs to open a Subway restaurant
- Subway is one of the cheapest restaurants to franchise.
- The company charges a $15,000 franchise fee and startup costs range from $105,800 to $393,600.
- By comparison, McDonald's charges a franchise fee of $45,000 and startup expenses can cost up to $2.2 million.
Subway is one of the cheapest major fast-food restaurants to franchise.
Subway's fee for becoming a franchisee is $15,000 and startup costs, which include construction and equipment leasing expenses, range from $105,800 to $393,600, according to the company.
RELATED: Check out some shocking Subway employee secrets:
But Subway restaurants generate less revenue than McDonald's units.
A Subway restaurant, on average, generates $422,000 in sales annually, compared to $2.6 million in average annual revenue for McDonald's restaurants, according to QSR magazine.
Subway also charges its franchisees hefty ongoing fees.
The company charges an ongoing royalty fee equal to 8% of gross sales, as well as an advertising fee equal to 4.5% of gross sales, according to Franchise Direct. That means 12.5% of each restaurant's revenues go to Subway corporate.
Here's a breakdown of startup costs, from the company:
More from Business Insider:
Department-store chain Bon-Ton is going out of business — here's the list of the 212 stores that will close
Bed Bath & Beyond's stores have been slammed as 'devoid of inspiration' and 'a mess' — here's what it's like to shop there
Starbucks is closing all locations for 'racial-bias education' — and it is going to cost the company millions of dollars