Q&A: Does Subway Franchise in the UK?

The green and yellow UK Subway logo is among the most recognisable and fastest-growing franchises globally. Since 1965 this fast and healthy sub-sandwiches has changed the face of fast food as we know it!

The global food giant currently has 44,000 Subway sandwich shops worldwide, remarkably more than other fast-food franchises, McDonald’s (36,000), KFC (20,500), Pizza Hut (11,000), and Burger King (13,000). That’s probably why UK Subway ranks no.7 on the UK’s Top 100!

Does UK Subway franchise?

Yes! Subway uses the franchise model to expand across the world. Interestingly, more than 70 per cent of new stores are launched by existing franchisees, which shows just how highly investors regard it. Clearly, they’ve reaped the benefits and are keen to increase their stake in the business by opening additional units. It’s understandable why the UK Subway franchise model is grabbing the attention of entrepreneurs globally as a great investment opportunity.

Who Owns Subway

Fred DeLuca, a youthful 17-year-old, ambitious entrepreneur, opened the doors of the first ‘Pete’s Super Submarines’, store in Connecticut, U.S. Dr. Peter Buck, his friend and investor opened 16 branches by 1974 in the region, which has led up to its success this day. As the business grew, the name changed a couple of times, and in 1968, the Subway brand was born.

Today, Subway is famous for its customisable sandwiches and vegetarian, vegan, and gluten-free options. The brand can cater to a large market and has stores in many locations. You’ll find UK Subway stores in shopping centres, retail, industrial and business parks; hospitals; universities; transport terminals; sporting facilities; amusement parks; and even convenience stores and petrol stations.

When Did Subway open in the UK?

The first UK Subway was opened in Brighton in 1996. Since then, it has grown in the UK, with more stores opening monthly. The good news is that you don’t require specific experience or qualifications to start your UK Subway franchise. If you have the know-how to run your own business, you are already halfway there, and the brand’s training team will teach you the rest.

Starting a Subway franchise unit

You don’t need any specific qualifications or experience to become a Subway franchisee. Instead, you need the skills, personality and market knowledge to run your own business – the brand’s training team will teach you the rest. You’ll also need to be committed to the company, as a Subway franchise agreement lasts 20 years. Here’s a little more information about joining the franchise.

Becoming a Subway franchisee

If you think Subway is the right franchise for you, you can request a brochure and complete an application form. Filling out this form does not commit you to investing; it just signals your interest. Once you’ve sent off your application form, Subway will send you a Franchise Disclosure Document (FDD). This record will contain everything you need to know about running a Subway store. It also includes details about the franchise fee and profit potential.

The FDD can be quite a lengthy and complex document, so we recommend you review it with a specialist franchise solicitor or financial advisor. At this point, you may also want to start discussions with your bank if you need a loan to finance your unit and talk to existing Subway franchisees. This will help you get a better sense of what it’s like to be part of the brand.

How much do you need to invest in a Subway store?

You can expect to invest a total of around £200,000 in your Subway store. While this sounds like a lot of cash, the sandwich brand offers good value for money, as it’s one of the most affordable franchises to buy based on its size and reputation. The final amount you pay will depend on several factors, including the location and size of your store.

Don’t forget, you’ll also need to pay an ongoing royalty fee and marketing fee. These are charged at eight percent and four and a half percent of your turnover respectively.

Handy tip: A more cost-effective way to join the brand is to buy an existing Subway franchise from a current franchisee. By doing this, you can reduce the amount of money you spend on set-up costs, as the store and all its equipment are usually included in the purchase price. The business’s workforce will probably stay on too, so you won’t need to dedicate time to recruitment or training.

What you get for your investment

Franchises run extensive training schemes to make sure their new investors have all the tools and knowledge they need to build a thriving business. Subway’s comprehensive induction programme gives you the chance to learn a range of hard skills and ask any questions you may have. This is your chance to find out what makes Subway such a successful franchise.

This initial course gives you a good base of knowledge, but ongoing support is always available from experienced mentors, should you need it. Whenever you have a question, concern or problem, you can get in touch with your franchisor and their support team, or talk to your fellow franchisees. The bottom line is, you’ll have an extensive network of likeminded people around you, so you’ll never be alone in business.

Get started today!

If you are passionate about succeeding with the Subway brand and have access to enough capital to set up your franchise unit, you’re in a good position to start your sandwich store. You can find out more about the Subway franchise model and how to get involved on our website. Click the Request Information banner to get the ball rolling.

Alternatively, why not take a look at some of our other high-performing food franchises? You’ll find everything from pretzel stalls to sweet shops, vending machine businesses to bubble tea franchises – there really is something for everyone.