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Subway franchise finance

See how you can own a Subway franchise and compare finance now.

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.

Updated June 20th, 2019
Name Product Min. Loan Amount Max. Loan Amount Loan Term Application Fee Apply Now
6 months to 3 years
A loan of up to $500,000 that can be approved and funded within 24 hours. Available to businesses with 6+ months operating history and $5,000+ monthly sales.
3 months to 5 years
A Small Business Lending Specialist from Valiant Finance can give you access to competitive business loans from over 60 lenders. Loans between $5,000 and $1 million are available. Request a call – your loan can be funded in 1 business day.
3 months to 2 years
A business loan available up to $300,000 that can be funded in 1 business day. Must have a turnover of $6,000+ per month and provide 6 months of trading history, 3 months history for existing business purchases.
6 months to 2 years
2.5% origination fee
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.
6 months to 2 years
Initial draw down fee
A flexible business loan up to $500,000 with convenient top up and redraw facilities. Business must have been operating for 9 months+ and have monthly sales of $10,000+
3 to 18 months
Borrow up to $500,000 and receive funding in up to 48 hours. You pay a one-off factor fee payable over the life of your loan, with no ongoing fees or interest payments required. Note: Minimum monthly turn over of $5,000 and 6 months trading history.
Up to 25 years
Borrow from $10,000 with multiple repayment options including optional fixed rate periods.
6 months to 2 years
Initial draw down fee
A business loan up to $100,000 for unsecured loans, or $500,000 for secured loans that you can use for any business purpose. Transparent costs and redraw facility available.
1 month to 3 years
An unsecured business loan from $2,000 that offers convenient pre-approval and no early repayment fees.

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