Financial information

The SUBWAY® brand has some of the lowest start-up costs in the industry for a franchise of its size and stature. The total amount of investment will depend on the location, rent, size and extent required.

The total initial investment will depend on many factors including location, rent, outlet size and equipment. The franchise agreement is for 20 years and renewable for 20 years (subject to terms and conditions). An important consideration in purchasing your first SUBWAY® outlet is how to finance your investment. A good arrangement is to have 50% of the total capital requirements available in cash and sufficient collateral to obtain funding for the balance. Below are links to lenders that can offer support.

Royalties and fees paid to the SUBWAY® brand are based on gross sales minus sales tax. The royalties are 8% to the SUBWAY® brand. A 4.5% advertising fee is paid to the 'Franchisee Advertising Fund (FAF)'. Franchisees in some markets may vote to increase the marketing fee percentage for local advertising purposes.

The franchise fee of £8,500* for outlets is one of the lowest on the market, despite the size of the chain.

Re-sales

Another option for those wishing to buy into the SUBWAY® franchise is to buy a re-sale store. On occasion, there is the opportunity for those interested in buying a franchise to purchase an existing store from a current franchisee, subject to successfully completing franchisee training. This can often result in lower set-up costs, as the store and all its equipment are often included in the purchase price. To find out more about any re-sale opportunities, speak to your local Development Agent.

* See SUBWAY® Capital Requirements below and in the Franchise Sales Brochure >>

Useful links to financial lenders

Natwest >>

RBS >>

Lombard >>

HSBC >>

Bank of Scotland >>

 

FRANCHISE CAPITAL REQUIREMENTS

Traditional Restaurants

GENERAL BREAKDOWN FOR:
LOWER COST
MODERATE COST
HIGHER COST
METHOD / WHEN DUE
INITIAL FRANCHISE FEE
£ 8,500
£ 8,500
£ 8,500
LUMP SUM Upon signing Franchise Agreement
PROPERTY ACQUISITION FEES
£ 3,500
£ 5,000
£ 10,000
LUMP SUM Upon signing intent to Sublease
LEASEHOLD IMPROVEMENTS
£ 20,000
£ 50,000
£ 80,000
AS INCURRED Pro rata during construction
EQUIPMENT
£ 30,000
£ 50,000
£ 70,000
LUMP SUM Before Equipment is ordered
SECURITY SYSTEM (Not including monitoring costs)
£ 1,000
£ 3,000
£ 5,000
LUMP SUM When you place order
FREIGHT CHARGES
£ 2,000
£ 2,750
£ 3,500
LUMP SUM When you place order or upon delivery
OPENING INVENTORY
£ 2,500
£ 3,000
£ 4,000
LUMP SUM When you place order
INSURANCE
£ 570
£ 1,200
£ 1,800
AS INCURRED Before opening
SUPPLIES
£ 500
£ 1,000
£ 2,000
AS INCURRED Before opening
TRAINING EXPENSES (Including travel and lodging)
£ 1,500
£ 1,500
£ 1,500
AS INCURRED During training
LEGAL & ACCOUNTING
£ 2,500
£ 4,000
£ 5,000
LUMP SUM Before opening
OPENING ADVERTISMENT
£ 500
£ 1,500
£ 3,000
LUMP SUM Around opening
MISC. EXPENSES (Business License, utility deposit, small equip . & surplus capital)
£ 2,500
£ 3,000
£ 4,000
AS INCURRED As required
ADDITIONAL FUNDS - 3 MONTHS
£ 10,000
£ 15,000
£ 25,000
LUMP SUM As required
ESTIMATED TOTAL INVESTMENT
£ 85,570
£ 149,450
£ 221,240
 

 

All figures in this item are estimates only. Actual costs will vary for each franchisee and each location. You may be entitled to certain rebates or reimbursements from your local taxing authority. Costs do not include any stamp duty or key money.

THESE FIGURES ARE ESTIMATES OF THE COMPLETE INVESTMENT IN SETTING UP A SUBWAY® RESTAURANT AND OPERATING IT FOR 3 MONTHS. IT IS POSSIBLE TO EXCEED COSTS IN ANY OF THE AREAS LISTED ABOVE.

Some costs will vary in relation to the physical size of the restaurant. A lower cost store is one that would require fewer leasehold improvements, less seating and fewer equipment expenditures. Moderate and higher costs restaurants may require extensive interior renovations, extensive seating and additional equipment. If you are purchasing a franchise for another location opportunity, such as a non-traditional, satellite or school lunch program location, the above listed capital requirements may vary and could be substantially lower depending upon the necessary equipment you must acquire or changes in leasehold improvements you must make. The above figures do not include extensive exterior renovations.

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