Subway franchise finance

A Subway franchise in a traditional location costs approximately $195,000 to $360,000 (excluding GST and stamp duty).

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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.

Loans you can use to buy a Subway franchise

Name Product Min. Loan Amount Max. Loan Amount Loan Term Upfront Fee Filter Values
BOQ SME Recovery Loan Scheme Business Loan
Up to 10 years
No approval or administrative fees
This loan only applies to businesses eligible under the SME Recovery Loan Scheme. An Australian Government backed business loan to help businesses recover from the Coronavirus pandemic.
ANZ Unsecured Business Loan
No maximum amount
1 to 30 years
Subject to negotiation and will be detailed in your Letter of Offer
Apply for a loan from $10,000 with no security required and benefit from flexible repayment terms.
Zip Business Loan
Up to 5 years
No establishment fee
Borrow up to $500,000 with loan terms of up to 5 years. Flexible weekly, fortnightly and monthly repayment options available with no early repayment fees.
Lumi Unsecured Business Loan
3 months to 3 years
2.5% establishment fee
Apply for up to $300,000 from Lumi and benefit from short loan terms, no early repayment fees and once approved receive your funds in just one business day.
Swoop Finance Business Loan
3 months to 30 years
Depending on your loan contract
Apply online and borrow between $18,000 and $90,000,000. Options for good and bad credit borrowers.
ebroker Business Loan
1 month to 30 years
$0 application fee
Small business loans available between $5,000 and $5,000,000. Get access to 70+ non-bank lenders on this independent platform.
ANZ Secured Business Loan
No maximum amount
1 to 30 years
Subject to negotiation and will be detailed in your Letter of Offer
Benefit from a low rate when you secure this loan with property and/or business assets. Loans from $10,000 available.
Prospa Business Loan
3 months to 3 years
3% origination fee
Small business loans are available from $5,000 - $500,000 on terms of up to 3 years. At least six months trading history and a monthly turnover from $6,000 is necessary.
Moula Business Loan
1 to 2 years
2% Establishment fee
A loan of up to $250,000 that can be approved and funded within 24 hours. Available to businesses with 6+ months operating history and $5,000+ monthly sales.
Max Funding Unsecured Business Loan
1 month to 1 year
$0 application fee
An unsecured business loan from $3,000 that offers convenient pre-approval and no early repayment fees.
Westpac Business Loan
1 to 30 years
$0 application fee
Purchase a new vehicle, equipment or support your cash flow with a business finance solution from Westpac.
Valiant Finance Business Loan Broker
3 months to 5 years
$0 application fee
A Business Lending Specialist from Valiant Finance can give you access to competitive business loans from over 70 lenders. Loans between $5,000 and $1 million are available. Request a call – your loan can be funded in 1 business day.
ANZ Business Loan under the Government SME Recovery Loan Scheme
Up to 10 years
No approval or administrative fees
This loan only applies to businesses eligible under the SME Recovery Loan Scheme. Bounce back from lockdowns with a loan of up to $5,000,000 with this Australian government backed business loan. Variable rates between 2.49% p.a. and 2.99% p.a.
Octet Trade Finance
1 month to 2 years
Transaction fee 2.5%
Access a line of credit to pay suppliers in over 65 countries. Borrow from $200,000 up to $7 million.
OnDeck Business Loans
6 months to 2 years
3% of loan amount
Apply for up to $250,000 and receive your approved funds in one business day. Minimum annual turnover of $100,000 and 1 year of trading history required.

Compare up to 4 providers

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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