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Cost of Subway Franchise in India: A Guide for UK Entrepreneurs

Saim Jalees

16.06.26

Read time 7 minutes

Subway is one of the world's largest quick-service restaurant chains, valued at over $12.5 billion in 2025¹ and operating 811 locations across India². For UK-based entrepreneurs considering an overseas franchise, Subway India stands out as it is often viewed as having a lower entrance barrier than certain pizza or burger chains³.

In this guide, we've covered the full cost of opening a Subway franchise in India, the requirements you will need to meet, what profits may be realistically achievable, and the key risks that UK investors should understand before making any financial commitment.

We've also explained how Wise Business can support UK business owners managing international payments to India to invest in an overseas franchise such as Subway India.

Disclaimer: The information in this article is for reference purposes only and should not be considered financial advice. All investment decisions should be made after thorough research and consultation with a qualified financial advisor. Remember that investments, even in low-risk funds, are never guaranteed, and your capital is at risk.

Key takeaways

Key point	What it means for UK investors
Subway India master franchise	Subway India is currently operated under a master franchise agreement with Everstone Group, a private equity firm covering India, Sri Lanka and Bangladesh⁴. UK investors should confirm franchise availability, eligibility, and local requirements directly with Everstone Group before making plans.
Estimated total investment	Total estimated investment for a standard Subway outlet in India currently ranges from approximately INR 5–6 million³. The GBP equivalent will vary with exchange rates, so investors should model currency movements before committing funds.
Franchise fee	The franchise fee is currently around INR 600,000–800,000³. This is one of the upfront costs to include alongside fit-out, rent, equipment, and working capital.
Ongoing fees	Ongoing fees currently include an 8% royalty fee and a 4.5% advertising fee³. These fees affect operating margins and should be included in any profit forecast.
Multi-unit focus	Subway currently says it is seeking qualified candidates to open multi-unit franchises⁵. You should confirm current single-unit availability directly with Everstone Group.
Estimated ROI period	The estimated ROI period is typically 2–3 years for well-located outlets³. This is an estimate and will depend on rent, location, sales, operating costs, and management.
UK to India payments	UK business owners residing in the UK can use Wise Business to send money from the UK, converting GBP to INR at the mid-market rate with low, transparent fees.

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How much does a Subway franchise cost in India?

Subway's total investment in India is described as a relatively lower initial investment than certain other quick-service restaurant (QSR) franchises, making it a starting point for investors who want a recognisable brand without the capital demands of some pizza or burger chains³.

Based on industry data and publicly available Subway India franchise information³:

Cost item	Estimated range
Franchise fee	INR 600,000–800,000
Equipment and interiors	INR 3–4 million
Store setup and initial rent	INR 1–1.5 million
Initial working capital	INR 500,000–700,000
Total estimated investment	INR 5–6 million

For context, the GBP equivalent of INR 5 million will vary with exchange rates. This is a relatively lower initial investment than certain other QSRs³.

Subway franchise fee and setup costs

The Subway franchise fee, also referred to as the initial franchise or licence fee, is currently approximately INR 600,000–800,000³ as a one-time upfront payment. The Franchise India article states that Subway provides training and support, advertising and marketing, and a proven business model³.

Equipment and interior costs are the largest single upfront expense. These cover food preparation equipment, refrigeration, counters, seating, signage, and Point of Sale (POS) systems. Depending on location, store size, and interior design, costs will vary³.

Subway currently says that, with multiple formats, you can grow your footprint almost anywhere, and lists traditional centres, travel hubs and non-traditional formats such as college campuses, hospitals and corporate centres⁶.

One thing worth knowing is that Subway currently says Independent Purchasing Co-op (IPC) is the supply chain manager and exclusive purchasing agent for Subway restaurants⁵.

What are the requirements to open a Subway in India?

Subway India is currently managed through the Everstone Group as the master franchise⁴. Requirements typically include:

Financial capacity: Subway's global franchise standards currently state minimum financial requirements of $150,000 net worth with $100,000 liquid assets per location⁵. In the Indian context, you will need to meet whatever financial thresholds Everstone Group specifies.
Entrepreneurial background: Subway currently says it is preferred that you, or a partner with an equity stake, have restaurant, business, or franchising experience⁵.
Location: Minimum floor area of 170 sq ft for a food court format or 350 sq ft for a non-food court location⁷. High-footfall areas are strongly preferred.
Commitment to the brand: Franchisees are expected to attend Subway's training programme and adhere to all brand standards consistently. Subway currently says it offers a comprehensive 3-week training programme, including virtual training via University of Subway and in-person training at certified restaurants⁵.

The Subway restaurant franchise term is currently 20 years⁵. This may be a long commitment for some, so it's advisable to read and understand the franchise agreement — with professional legal advice — before signing anything.

As a UK resident, you should take advice from a legal adviser experienced in Indian franchise and foreign investment matters before proceeding.

How profitable is a Subway franchise in India?

Profitability depends primarily on your location, footfall, and how efficiently you manage costs. Based on industry estimates³ for Subway India:

Revenue/cost metric	Monthly estimate
Monthly gross sales	INR 1–1.5 million
Cost of goods sold (40–45%)	INR 400,000–600,000
Rent and utilities	INR 100,000–200,000
Royalty and advertising (12.5%)	INR 125,000–187,000
Staff wages	INR 200,000–300,000
Estimated net profit	INR 150,000–300,000

Based on these estimates, franchise owners may see ROI within 2–3 years, depending on sales and operational efficiency³.

These figures assume a well-run outlet in a good location. Outlets with poor footfall, high rent-to-sales ratios or operational inefficiencies will perform materially worse.

A key margin risk is the combined royalty and advertising fee: at 12.5% of sales³, this is an important financial factor to model carefully before committing.

💡With Wise Business, UK business owners residing in the UK can send money from the UK to India, converting GBP to INR at the mid-market rate with low, transparent fees. This can help when planning franchise-related transfers from the UK.

How do you apply for a Subway franchise in India?

Subway's India ownership path currently starts with applying online by submitting an initial inquiry to connect with its franchise development team⁸. The process for applying to a Subway franchise in India involves the following steps:

Apply online: Submit your initial inquiry to connect with Subway's franchise development team⁸.
Discovery process: Evaluate financial disclosures, speak with current owners, and review territories⁸.
Approval and agreement: Finalise your background checks, secure funding, and sign the franchise agreement⁸.
Financial review: Subway will examine your financial background³.
Location selection: You work with Subway to identify and approve a suitable location³.
Review and sign the franchise agreement: Before signing, have the Franchise Disclosure Document (FDD) and franchise agreement reviewed by an independent franchise lawyer.
Training: Complete Subway's comprehensive 3-week training programme, including virtual training via University of Subway and in-person training at certified restaurants⁵.
Build and open: Once the store is built to Subway's specifications, launch with pre-opening marketing support.

Subway currently estimates that it typically takes about 4 to 12 months to open a restaurant location, depending on whether you are building into an existing location or the location is a ground-up build, as well as location type, site, permit, and construction considerations⁵.

What are the key risks to consider?

Investing in a Subway franchise in India from the UK involves several specific risks that deserve careful consideration:

Currency risk: Your initial investment is made in GBP, converting to INR. If the Indian currency depreciates against sterling over your investment horizon, your returns in GBP terms are affected. Conversely, a strengthening Indian currency improves your GBP returns.
Rent escalation: Commercial leases can include rent escalation clauses. If rents rise faster than revenue growth, your profit margins can compress.
Competition: India's QSR industry is competitive, with domestic and foreign competitors fighting for market share³.
Operational oversight from the UK: Managing a food service business overseas is genuinely difficult. You will need a trusted local operations partner or be prepared to relocate.
Royalty burden: The 12.5% combined royalty and advertising fee³ is a high fixed cost on sales. Ensure your sales projections are conservative.

Save on large amount transfers when paying for a franchise with Wise Business

For UK business owners moving money to India, managing foreign exchange costs is important - and that's especially the case with large amount transfers.

With Wise Business, you could save up to £1,000 with Wise vs your bank on a £50,000 transfer.

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Sources:

Sources last checked on 16 June 2026

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