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Subway franchise financing options

Compare costs, fees and where to get financing for a Subway.

Overall costs for Subway run anywhere from $98,850 to $337,400. See how the costs break down and what funding options might be right for your new venture into the franchise foray.

Estimated initial costs

Our cost estimates are accurate as of 2021 from Franchise Direct and include opening fees and expenses only. The location you choose for your Subway franchise may result in higher or lower fees.

Franchise fees

Subway franchise fees total around $15,000, which beats out the $37,000 average for the 200 largest franchises nationwide.
Franchise Cost
Initial franchise fee $15,000 to $15,000
Royalty 8% of total gross sales.
Estimated total $15,000 to $15,000

Equipment fees

Equipment fees total $27,800 for Subway. This is less than the $180,023 average for the top 200 franchises.
Equipment Cost
Equipment lease security deposit $7,500 to $15,500
Optional security system $2,450 to $3,550
Freight charges, varies by location $3,000 to $14,000
Outside signage $1,600 to $8,000
Estimated total $14,550 to $41,050

Real estate fees

Real estate will set you back $127,450 for Subway, thought it's less than the average of $788,376 for the top 200 franchises.
Real estate Cost
Real property $2,000 to $12,000
Leasehold improvements $40,900 to $200,000
Estimated total $42,900 to $212,000

Training fees

Subway initial training costs total $3,500, which comes in under the nationwide average of $9,788.
Training Cost
Training expenses, including travel and lodging $2,500 to $4,500
Estimated total $2,500 to $4,500

Inventory costs

Initial inventory for Subway shakes out to $6,125. This is less than the nationwide average of $53,119.
Inventory Cost
Opening inventory $4,400 to $6,050
Supplies $500 to $1,300
Estimated total $4,900 to $7,350

Marketing costs

Advertisement and marketing costs total up to $3,000 for Subway, beating out the nationwide average of $9,938.
Marketing Cost
Opening advertising $2,000 to $4,000
Advertising 4.5% of total gross sales.
Local advertising Established by franchisees.
Grand opening advertising $2,000
Estimated total $2,000 to $4,000

Administrative fees

Subway administrative fees total up to $2,250 — which comes in under the overall nationwide average of $6,761.
Admin Cost
Legal and accounting $1,000 to $3,500
Audit Overdue amount.
Estimated total $1,000 to $3,500

Other expenses

Miscellaneous expenses for Subway total $33,000 — less than the nationwide average of $69,970.
Other Cost
Miscellaneous expenses, including business license, utility deposits and small equipment $4,000 to $8,000
Three months' additional funds $12,000 to $42,000
Additional funds Established by franchisees.
Estimated total $16,000 to $50,000
All costs were found using the 200 largest franchises nationwide using Franchise Direct's list of more than 300 franchises, and are accurate as of 2021.

How to finance

Since the estimated total for Subway is on the more costly side, we recommend following these steps to get fully financed:
  1. Go to the Subway franchising website and review its financial requirements, including cash-on-hand requirements.
  2. Reach out to Subway about in-house financing for franchisees.
  3. If in-house financing isn't available, look for online loans, bank loans and SBA loans to help meet the $218,125 estimated opening costs.
  4. Compare lenders based on amounts, interest rates and what types of personal and business credit history they accept.
  5. Once you settle on a lender, gather all required documents, including account statements and assets.
  6. Apply for financing online or in person as required by the lender.

What types of financing is available?

You have several options when it comes to financing a Subway — even if the cost is on the heavier side. What assets you have available will largely determine how much you need to borrow, and which option suits you best.
  • Online loan. A number of online business lenders offer amounts up to $1 million, with some extending up to $5 million.
  • Bank loan. Your personal credit will typically need to at least be good — 670 or higher — when it comes to getting a bank loan large enough to cover a significant portion of Subway opening costs.
  • SBA loan. While your personal credit score doesn't need to be as good to qualify for an SBA loan, they usually cost more than standard term loans from banks or online lenders.
Also check if Subway franchise financing is available. You may be able to get some of the costs covered for less than you would with other traditional funding options.

Compare small business lenders

You may not need financing to cover the estimated $98,850. But if you need funds for other business ventures, select the loan amount, your time in business and revenue and your personal credit score to compare a selection of lenders.
Name Product Filter Values Min. Amount Max. Amount Requirements
Fora Financial business loans
6+ months in business, $12,000+ monthly revenue, no open bankruptcies
Get qualified for funding in minutes for up to $500,000 without affecting your credit score. Best for companies with at least six figures in annual revenue.
Lendio business loans
Operate business in US or Canada, have a business bank account, 560+ personal credit score
Submit one simple application to potentially get offers from a network of over 300 legit business lenders.
OnDeck short-term loans
600+ personal credit score, 1 year in business, $100,000+ annual revenue
A leading online business lender offering flexible financing at competitive fixed rates.
National Funding business loans
Be in business at least one year and make at least $150,000 in annual sales. Other loan types have additional requirements.
Working capital loans and equipment financing, some high-risk industries may be eligible.
Fundbox lines of credit
6 + months in business, $100,000+ in annual revenue, 600+ credit score
Get flat rate, short-term financing based on the financial health of your business, not your credit score.

Compare up to 4 providers

How Subway stacks up

Compare how Subway holds up against two similarly sized franchises.
7-Eleven Subway McDonald's
Average Franchise fees $500,000 $15,000 $22,500
Average Equipment fees $1,375 $27,800 $937,500
Average Real estate fees NA $127,450 NA
Average Training fees $4,500 $3,500 NA
Average Inventory fees $49,800 $6,125 $22,500
Average Marketing fees NA $3,000 NA
Average Licenses and permits fees $9,000 NA NA
Average Insurance fees NA NA NA
Average Admin fees NA $2,250 NA
Average Personnel fees NA NA NA
Average Other fees $31,000 $33,000 $51,500

Bottom line

Subway franchise costs run a total of $218,125. Before you decide to become a franchisee, compare the total costs against industry averages. And to learn more about financing read our guide to franchise financing.

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