You must be approved by the local DA, who manages the territory and oversees the transfer process.
New owners must complete a comprehensive 3-week training program , which includes both virtual and in-person components. Pros and Cons of a Franchise Resale Cash Flow Immediate income from day one. High royalty "haircut" (12.5% total). Setup No need for construction or site permits. Potential for outdated equipment or décor. Risk Proven location with historical data. You may be buying someone else's declining performance. Market Established local brand awareness. Fierce competition from brands like Jersey Mike's. Frequently Asked Questions | Subway Franchise buying an existing subway franchise
Subway is increasingly prioritizing multi-unit candidates who can manage 5 or more locations. Running a single store as an absentee owner is often financially difficult due to thin margins. You must be approved by the local DA,
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. High royalty "haircut" (12
Request 3–5 years of tax returns and sales records. Scrutinize the lease agreement for remaining options and potential rent hikes.
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
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