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Franchise Capital RequirementsTraditional Restaurants
GENERAL BREAKDOWN FOR : LOWER COST MODERATE COST HIGHER COST
METHOD/
WHEN DUE
INITIAL FRANCHISE FEE $ 15,000 $ 15,000 $ 15,000 LUMP SUMUpon
signing franchise agreement
REAL PROPERTY ** $ 2,000 $ 5,000 $ 12,000 LUMP SUMUpon signing
intent to sublease
LEASEHOLD IMPROVEMENTS $ 59,500 $102,100 $134,500 AS INCURREDPro
rata during construction
EQUIPMENT *** $ 4,500 $ 6,500 $ 7,500 LUMP SUMBefore equipment
is ordered
SECURITY SYSTEM (Not including monitoring costs) $ 2,000 $ 3,500
$ 6,000 LUMP SUMWhen you place order
FREIGHT CHARGES (Varies by location) $ 3,000 $ 3,750 $ 4,500
LUMP SUMWhen you place order or on delivery
OUTSIDE SIGNS $ 2,000 $ 4,000 $ 8,000 LUMP SUMWhen you place
order
OPENING INVENTORY $ 4,000 $ 4,750 $ 5,500 LUMP SUMWithin one
week of opening
INSURANCE $ 800 $ 1,500 $ 2,500 AS INCURREDBefore opening
SUPPLIES $ 500 $ 900 $ 1,300 AS INCURREDBefore opening
TRAINING EXPENSES (Including travel and lodging) $ 2,500 $ 3,500
$ 4,500 AS INCURREDDuring training
LEGAL & ACCOUNTING $ 1,000 $ 2,000 $ 3,500 LUMP SUMBefore
opening
OPENING ADVERTISMENT $ 2,500 $ 3,250 $ 4,000 LUMP SUMAround
opening
MISC. EXPENSES(Business License, utility deposit, small equip.
& surplus capital)
$ 4,000 $ 6,000 $ 8,000 AS INCURREDAs required
ADDITIONAL FUNDS - 3 MONTHS $ 12,000 $ 26,000 $ 42,000 LUMP
SUMAs required
ESTIMATED TOTAL INVESTMENT *** $115,300 $187,750 $258,800
DAI USA
Effective: 5/2011
US Dollars
** This amount is the estimated deposit of 2 months rent payable
upon signing the Intent to Sublease.
*** If you do not select the equipment leasing program or it is
not available, you should substitute the costs for Equipment Lease
Security Deposit with $49,500 to $72,000.
THESE FIGURES ARE ESTIMATES OF THE COMPLETE INVESTMENT IN
SETTING UP A SUBWAYRESTAURANT AND OPERATING IT FOR 3 MONTHS. IT IS
POSSIBLE TO EXCEED COSTS IN ANY OF THE AREAS LISTED A BOVE.
Some costs will vary in relation to the physical size of the
restaurant. A lower cost restaurant is one that would require fewer
leasehold improvements, less seating and fewer equipment
expenditures. Moderate and highercosts restaurants may require
extensive interior renovations, extensive seating and additional
equipment. If you are purchasing a franchise for another location
opportunity, such as a non-traditional, satellite or school
lunchprogram location, the above listed capital requirements may
vary and could be substantially lower depending upon the necessary
equipment you must acquire or changes in leasehold improvements you
must make. Theabove figures do not include extensive exterior
renovations.
SUBWAY is a registered trademark of Doctors Associates Inc. 2011
Doctors Associates Inc.
*NON-TRADITIONAL
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** This amount is the estimated deposit of 2 months rent payable
upon signing the Intent to Sublease.*** If you do not select the
equipment leasing program or it is not available, you should
substitute the costs for Equipment Lease Security Deposit with
$55,000 TO $80,000 (including 10%buffer). The amount of Additional
Fundsfor the 3 months operating expenses would also be adjusted to
reflect that you will not have to make 3 monthly equipment lease
payments. This will cause your total initial investment to be
substantially higher.
Some costs will vary in relation to the physical size of the
restaurant. A lower cost restaurant is one that would require fewer
leasehold improvements, less seating and fewer equipment
expenditures. Moderate and higher costsrestaurants may require
extensive interior renovations, extensive seating and additional
equipment. If you are purchasing a franchise for another location
opportunity, such as a non-traditional, satellite or school lunch
programlocation, the above listed capital requirements may vary and
could be substantially lower depending upon the necessary equipment
you must acquire or changes in leasehold improvements you must
make. The above figures donot include extensive exterior
renovations.
SUBWAY is a registered trademark of Doctors Associates Inc. 2011
Doctors Associates Inc.
Franchise Capital Requirements
TraditionalGENERAL BREAKDOWN FOR : LOWER COST MODERATE COST
HIGHER COST METHOD/
WHEN DUE
INITIAL FRANCHISE FEE$ 15,000 $ 15,000 $ 15,000 LUMP SUM
Upon signing Franchise Agreement
REAL PROPERTY **$ 2,000 $ 5,000 $ 12,000 LUMP SUM
Upon signing Intent to Sublease
LEASEHOLD IMPROVEMENTS$ 46,000 $ 81,000 $106,000 AS INCURRED
Pro rata during construction
EQUIPMENT LEASE SECURITY DEPOSIT***$ 4,500 $ 6,500 $ 7,500 LUMP
SUM
Before equipment is ordered
SECURITY SYSTEM (Not including monitoring costs) $ 1,000 $ 2,000
$ 5,000 LUMP SUMWhen you place order
FREIGHT CHARGES (Varies by location & method)$ 3,800 $ 6,000
$ 9,000 LUMP SUM
When you place order or on delivery
OUTSIDE SIGNS$ 2,000 $ 4,500 $ 8,500 LUMP SUM
When you place order
OPENING INVENTORY$ 2,500 $ 3,500 $ 5,000 LUMP SUM
Within one week of opening
INSURANCE$ 800 $ 900 $ 1,000 AS INCURRED
Before opening
SUPPLIES$ 600 $ 900 $ 1,200 AS INCURRED
Before opening
TRAINING EXPENSES (Including travel and lodging) $ 2,500 $ 3,500
$ 5,000 AS INCURREDDuring training
LEGAL & ACCOUNTING$ 1,000 $ 3,000 $ 5,000 LUMP SUM
Before opening
OPENING ADVERTISMENT$ 2,000 $ 2,300 $ 2,500 LUMP SUM
Around opening
MISC. EXPENSES(Business License, utility deposit, small equip.
& surplus capital)
$ 5,000 $ 8,000 $ 10,000 AS INCURRED
As required
ADDITIONAL FUNDS - 3 MONTHS$ 13,000 $ 28,000 $ 43,000 LUMP
SUM
As required
ESTIMATED TOTAL INVESTMENT ***$101,700 $170,100 $235,700
CANADA
Effective 07/2011
Canadian Dollars
