Here's what it costs to open a Subway restaurant

Subway is one of the cheapest major fast food restaurants to franchise.

To open one restaurant, the company requires that potential franchisees have liquid assets of at least $US30,000 and a net worth of $US80,000 to $US310,000, according to Entrepreneur.

By comparison, McDonald’s requires its franchisees to have at least $US750,000 in liquid assets and a minimum net worth of $US700,000.

Subway franchisees need less money because the sandwich chain’s restaurants are cheaper to open.

Subway’s startup costs, which include construction and equipment leasing expenses, range from $US116,200 to $US262,850, according to the company.

Opening a McDonald’s restaurant requires as much as $US2.3 million in startup costs alone, by comparison.

But Subway restaurants generate less revenue than McDonald’s units.

The average Subway restaurant generates $US490,000 in sales annually, compared to $US2.5 million in average annual revenue for McDonald’s restaurants, according to QSR magazine.

Subway also charges its franchisees some hefty fees.

The company charges an ongoing royalty fee equal to 8% of gross sales, as well as an advertising fee equal to 4.5% of gross sales. That means 12.5% of each restaurant’s revenues go to Subway corporate.

Here’s a breakdown of startup costs from the company:

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