Key takeaways
- A new Subway store in Australia typically costs $195,000 to $522,300 to open.
- Ongoing fees total 12.5% of gross sales (8% royalty + 4.5% marketing levy).
- The biggest ongoing cost most cost guides ignore is labour — usually 18–24% of revenue.
- Controlling that labour percentage through demand-based rostering is the main lever on your profit.
Opening a new Subway franchise in Australia typically costs between $195,000 and $522,300, depending on location, size and fit-out. That gets you a traditional store: a one-off franchise fee of around $15,000, equipment and fit-out of $100,000–$250,000, and working capital on top. But the setup cost is only half the story — the number that decides whether the store makes money is your labour cost, and it’s the one most franchise cost guides barely mention. This guide covers both — the upfront numbers and the ongoing franchise workforce management that decides your margin.
Subway franchise costs at a glance
- To open a new store:
$195,000–$522,300 total investment
- Franchise fee:
~$15,000 one-off
- Ongoing fees:
12.5% of gross sales (8% royalty + 4.5% marketing)
- The cost that decides profit:
Labour, typically 18–24% of revenue — controllable through rostering
Subway remains Australia’s largest fast-food chain by store count, with more than 1,200 locations. It’s also a network that has been contracting in recent years, so location choice and store performance matter more than ever. Figures below are indicative and were last verified in July 2026 — always confirm the current numbers against Subway’s franchise disclosure document before committing.
How much does it cost to open a Subway franchise?
The total upfront investment for a new traditional Subway store generally falls between $195,000 and $522,300. The wide range reflects differences in lease, location tier, store size and fit-out complexity.
Indicative upfront cost to open a new Subway store (Australia, verified July 2026)
| Cost item | Typical range (AUD) |
|---|---|
| Initial franchise fee | ~$15,000 |
| Fit-out & equipment | $100,000–$250,000 |
| Working capital | $30,000–$127,300 |
| Total initial investment | $195,000–$522,300 |
Indicative only. Buying an established store instead of building new typically ranges from around $109,000 to over $700,000 depending on turnover and location. The total range also reflects site, lease, professional fees and other costs beyond the itemised rows.
Ongoing Subway franchise fees
Once you’re trading, Subway takes a combined 12.5% of gross weekly sales:
- Royalty fee — 8% of gross sales. Paid for the use of the brand and system.
- Advertising levy — 4.5% of gross sales. Funds national and local marketing.
These come off the top of revenue, before rent, wages, stock and utilities. On a store turning over $12,000 a week, that’s around $1,500 a week — roughly $78,000 a year — in franchisor fees alone.
What you need to qualify
Applicants generally need a net worth of around $350,000, with at least $100,000 in liquid assets. Because Subway’s setup cost is relatively low for a fast-food brand, more of the barrier is operational than financial — you’ll be expected to run the store hands-on, especially in the first year.
The labour blind spot most cost guides skip
Setup cost is a one-off. Labour is forever — and for a Subway store it’s typically 18–24% of revenue, second only to food cost. Yet almost every “cost to open a Subway” article stops at the franchise fee and never explains where that labour percentage comes from or how to control it.
Subway sandwich artists are covered by the Fast Food Industry Award (MA000003), which is set and enforced by Fair Work. What pushes the labour percentage up isn’t the base rate — it’s when your staff work:
- Casual loading of 25% on top of the base rate, and most QSR staff are casual.
- Evening, weekend and public-holiday penalty rates — and lunch and dinner peaks, late-night trade and weekends are exactly when a sandwich store is busiest.
- Junior rates for staff under 21, which help, but only if you roster the right mix.
A worked example
A store turning over $12,000 a week at a 22% labour cost spends about $2,640 a week on wages — roughly $137,000 a year. Push that to 26% through over-rostering quiet periods and you’ve added about $25,000 a year in wages for the same sales. That difference is often the whole store’s profit. Model your own numbers with the franchise labour cost calculator.
The lever is rostering to demand rather than filling the same shifts every week. Match staffing to your actual trade pattern, keep hours off penalty windows where you can, and track rostered versus actual hours. That’s the difference between a Subway that clears a healthy margin and one that runs the owner into the ground — see reducing labour costs without understaffing and our guide to penalty rates in Australia.
Is a Subway franchise profitable in Australia?
It can be, but margins are tight and outcomes vary widely by site. Owner earnings commonly land somewhere around $60,000–$150,000 a year, heavily dependent on turnover, rent and — the swing factor — wages. Two things most affect the result:
- Location and cannibalisation. Subway expanded rapidly, so some franchisees compete with nearby Subway stores that split the customer base.
- Labour control. With ongoing fees fixed at 12.5% and food cost largely set by the supply chain, labour is the biggest cost you can actually influence. A well-rostered store and a poorly-rostered one on identical sales can differ by tens of thousands in annual profit.
This is where the ongoing decision matters more than the opening one. If you go on to run more than one store, multi-site rostering for franchise operators becomes the core skill — and it’s the problem RosterElf’s franchise workforce management is built to solve. For the wider picture, see our guides to franchise startup costs and whether a franchise is profitable in Australia.
See your labour cost before the week starts, not after. RosterElf shows live wage cost against your sales as you build each roster, with Fast Food Award rates applied automatically — so a new Subway hits its target labour percentage from day one. Try the free franchise labour cost calculator to benchmark where you stand.
Related RosterElf resources
Franchise labour cost calculator
Franchise workforce management
Fast Food Award rates
Grill'd franchise cost
Rostering software
Payroll integration
Disclaimer
Cost and fee figures in this article are indicative, were last verified in July 2026, and will vary by location, lease and store format. They are general information only, not financial or franchising advice. Always verify current figures against Subway’s franchise disclosure document and seek professional advice before committing. RosterElf is not affiliated with, endorsed by, or sponsored by Subway; all trademarks are the property of their respective owners.
Frequently asked questions
How much does it cost to open a Subway franchise in Australia?
A new traditional Subway store typically costs between $195,000 and $522,300 to open. That includes a one-off franchise fee of around $15,000, fit-out and equipment of $100,000–$250,000, and working capital. Buying an existing store instead ranges from roughly $109,000 to over $700,000 depending on turnover and location.
What are the ongoing fees for a Subway franchise?
Subway charges a combined 12.5% of gross weekly sales: an 8% royalty fee and a 4.5% advertising levy. These are deducted before rent, wages, stock and other running costs.
How much does a Subway franchise owner make in Australia?
Owner earnings commonly fall around $60,000–$150,000 a year, but this varies widely with turnover, rent and wages. Because franchisor fees and food costs are largely fixed, labour cost is the biggest lever on profit.
How many staff do you need to run a Subway?
A single store usually runs on a mix of casual sandwich artists plus a manager, scaling up for lunch and dinner peaks and weekend trade. Labour typically works out to 18–24% of revenue, so how you roster those peaks strongly affects profit.
What award covers Subway staff in Australia?
Subway staff are generally covered by the Fast Food Industry Award (MA000003), which sets base rates, a 25% casual loading, junior rates and penalty rates for evenings, weekends and public holidays.
Is a Subway franchise profitable?
It can be, but margins are tight and results vary by site. The main risks are location cannibalisation from nearby Subway stores and poor labour control. Controlling labour cost through demand-based rostering is often what separates a profitable store from a marginal one.
