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Subway franchise financing options
Compare costs, fees and where to get financing for a Subway.
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 feesSubway franchise fees total around $15,000, which beats out the $37,000 average for the 200 largest franchises nationwide.
|Initial franchise fee||$15,000 to $15,000|
|Royalty||8% of total gross sales.|
|Estimated total||$15,000 to $15,000|
Equipment feesEquipment fees total $27,800 for Subway. This is less than the $180,023 average for the top 200 franchises.
|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 feesReal 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 property||$2,000 to $12,000|
|Leasehold improvements||$40,900 to $200,000|
|Estimated total||$42,900 to $212,000|
Training feesSubway initial training costs total $3,500, which comes in under the nationwide average of $9,788.
|Training expenses, including travel and lodging||$2,500 to $4,500|
|Estimated total||$2,500 to $4,500|
Inventory costsInitial inventory for Subway shakes out to $6,125. This is less than the nationwide average of $53,119.
|Opening inventory||$4,400 to $6,050|
|Supplies||$500 to $1,300|
|Estimated total||$4,900 to $7,350|
Marketing costsAdvertisement and marketing costs total up to $3,000 for Subway, beating out the nationwide average of $9,938.
|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 feesSubway administrative fees total up to $2,250 — which comes in under the overall nationwide average of $6,761.
|Legal and accounting||$1,000 to $3,500|
|Estimated total||$1,000 to $3,500|
Other expensesMiscellaneous expenses for Subway total $33,000 — less than the nationwide average of $69,970.
|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|
How to financeSince the estimated total for Subway is on the more costly side, we recommend following these steps to get fully financed:
- Go to the Subway franchising website and review its financial requirements, including cash-on-hand requirements.
- Reach out to Subway about in-house financing for franchisees.
- 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.
- Compare lenders based on amounts, interest rates and what types of personal and business credit history they accept.
- Once you settle on a lender, gather all required documents, including account statements and assets.
- 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.
Compare small business lendersYou 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.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
How Subway stacks upCompare how Subway holds up against two similarly sized franchises.
|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 lineSubway 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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