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Subway franchise finance

Learn how you can apply for and finance a Subway franchise

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Thomas Stelzer
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Subway is an American fast food franchise that sells made-to-order sandwiches and salads. It is the largest single-brand restaurant chain and largest restaurant operator in the world, with over 40,000 stores in more than 100 countries.

If you're looking to buy a Subway franchise, find out how it works, how to apply and compare your loan options below.

How does a Subway franchise work?

Like many fast food brands, Subway operates using a franchise model, meaning potential business owners can open a Subway store by buying one directly from the franchisor, or by purchasing an existing store from another franchisee. Once you've bought a Subway franchise, you're required to run and operate the business yourself, but will receive ongoing support.

You will also receive initial training and will be assisted through the franchising process, including finding and building your store.

How much does it cost?

The initial investment required for a Subway franchise in a traditional location is approximately $195,000 to $360,000, exclusive of GST and stamp duty. If you want to purchase a franchise for a non-traditional location, your initial costs may be substantially lower.

Ongoing costs

You will also need to pay ongoing fees to the franchisor, as well as the general operating costs of the business, including payroll, stock and utilities.

What do I need to do to become a Subway franchisee?

You will need to complete the following steps to become a Subway franchisee:

  1. Request a franchise brochure
  2. Submit your franchise application
  3. Meet with a local development agent
  4. Review your disclosure document
  5. Conduct your own local research
  6. Secure finance or funding
  7. Sign your franchise agreement
  8. Attend franchisee training
  9. Find a location and start building your store
  10. Open your store

The above process takes an average of seven months until your store is ready to open.

You will also need to complete a basic skills test covering English and maths. The two-part test is compulsory and takes approximately one hour to complete.

How do I finance a Subway franchise?

As part of your franchise application process, you will need to secure finance for your Subway restaurant. You have a number of options when it comes to funding, including:

Secured business loan. With a secured loan, you will need to use an asset, such as commercial or residential property, as security against the loan. You will generally receive a lower rate with a secured loan and may be more likely to be approved.

Unsecured business loan. If you don't want to use an asset as security against your loan, you can apply for unsecured business finance.

Business line of credit. A business line of credit provides ongoing access to a set amount of capital, which can be drawn on as and when needed.

How do I apply for finance?

Once you're ready to secure finance for your Subway franchise, you can compare loans using the table below. When you've found a loan, click "Go to site" to begin your application.

You will need to provide specific financial and personal information in your application and you'll need to meet all the lending criteria of a certain lender to be eligible for a loan.

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