Subway

About Subway

Subway is an American multi-national fast food restaurant franchise that primarily sells submarine sandwiches, wraps, salads and drinks. Founded by 17-year-old Fred DeLuca in 1965 as Pete's Super Submarines in Connecticut, the restaurant was renamed Subway two years later, and a franchise operation began in 1974. Since then, it has expanded to become a global franchise, and it was the fastest-growing franchise in the world in 2015. It now has more than 41,000 locations in over 100 countries and territories and is the largest single-brand restaurant chain, and the largest restaurant operator, in the world. Upon appointing Matt Clark as its new director of operations for UK & Ireland in 2021, the company said: “We have franchise opportunities for new and existing stores throughout the UK and Ireland.” In May 2023, Subway unveiled its biggest menu overhaul in 25 years and signed its biggest ever franchise deal, which will see it look to open 4,000 new sites in China over the next 20 years. In August 2023, Subway was sold to Roark Capital for circa $9.5bn, and later that same year, it introduced self-serve kiosks into its UK estate for the first time. In March 2024, Subway signed a new master franchise agreement with McWin, the backer of Gail’s, Sticks‘n’Sushi, and Big Mamma Group, which will result in the opening of almost 600 new restaurants across France, the Czech Republic, Luxembourg and Belgium. The sale to Roark Capital competed in April 2024, Subway said there were no anticipated changes to the company’s leadership team, strategic focus or operating plants. “The entire Subway system is excited that our sale to Roark is complete,” Subway chief executive John Chidsey said in a statement. “As we look to our future, our growth journey is far from over. With a continued strategic focus on delivering better food and a better guest experience, our next chapter will be the most exciting yet.” In September 2025, Subway moved to launch new loaded jacket potatoes across its 2,132-strong UK estate after a successful trial. Called “Spudway”, 170 branches of the brand began a jacket potato trial, and the company said since its launch, Spudway has outperformed expectations, increasing both like-for-like sales and visits across the 170 trial locations. Cathy Goodwin, interim director of culinary and innovation Subway EMEA, said: “The nation's love of jacket potatoes is unparalleled. The enthusiasm we’ve seen on social media and the strong demand from our guests throughout the trial made it clear that Spudway deserved a permanent place on our menu.”

Why franchise with Subway

• ✓Subway claims it has some of the lowest start-up costs in the industry for a franchise of its size and stature, although the total investment will depend on location, rent and store size. Initial investment is £8,500, with total investment £85,570-£221,240. Royalties are 8% of net sales and marketing fees 4.5%. The franchise agreement is for 20 years and renewable for a further 20 years (subject to terms and conditions). Subway encourages franchisees to have 50% of the total capital requirements available in cash and sufficient collateral to obtain funding for the balance. A list of recommended providers can be shared on request. On occasion, there will be the opportunity to purchase an existing store from a current franchise owner. This can often result in lower set-up costs, as the store and all its equipment are often included in the purchase price. The ten steps to becoming an owner are requesting a brochure, completing an application, meeting the local business development team, reviewing disclosure documents, research, securing financing, signing the agreement, attending training, finding a location and opening the store. All new franchise owners are required to attend a two-week training course at the Subway Support Centre in Cambridge ahead of opening, giving an overview of operating a Subway store and running a business, including classroom and in-store sessions. An in-depth support structure is also operated through business development agents who have specific experience in opening and developing Subway franchises. There are 20 in the UK and Ireland, which assist and mentor all franchise owners with site selection, leasing, design, construction, hands-on training, purchasing, operations, advertising, local store marketing and more. They also provide continued support and mentoring once a store is open. IPC Europe, owned by Subway franchise owners in Europe, manages the purchasing and supply chain of Subway specified and approved food, packaging, equipment and business solutions. It also provides business and technology services and initiatives to help franchise owners cut costs and increase profitability. Non-traditional franchise owner options include working with a food service management company or caterer, or becoming a landlord to Subway. Non-traditional locations, of which there are more than 800 in the UK and Ireland, include hotels, petrol stations, hospitals, airports and train stations, industry and business parks, shops, service stations, amusement parks, sporting arenas and universities and colleges.