Buying a SUBWAY® Franchise – What Does It Cost?

Find out the costs of buying a SUBWAY® franchise

It’s one of the most frequently asked questions in franchising. It’s also one of the most popular industry-related internet searches. And it’s probably what brought you here today.

How much does it cost to buy a SUBWAY® franchise?

The short answer is: ‘it depends.’ Because, as you’ll find out, there are different options available to investors, dependent on the size and location of the restaurant. The one constant, though, is the franchise fee which, at the time of writing, is £8,500.

Is SUBWAY® the right way for you?

Perhaps it’s no surprise that so many potential franchisees are drawn to buy a SUBWAY® franchise. After all, one of the main reasons people buy a franchise is to prosper from a proven business model. And there’s no doubt that, with more than 43,000 stores in over 110 countries, the SUBWAY® model is proven. It should be no surprise too, then, that the first question on most of those prospective franchisees’ minds is: ‘how much does it cost to buy a SUBWAY® franchise?’ After all, investing in a franchise starts with a financial transaction, and you need to know whether you can afford the outlay.

But is it the most important question to ask?

With hundreds of franchise opportunities in the UK, isn’t it more important that you choose the right opportunity for you? Shouldn’t you be asking about the commitments you need to make; finding out what your day-to-day tasks will be, and whether you can see yourself doing them? On its company website, SUBWAY® itself suggests interested parties research the franchise marketplace fully, and explore all the options available before making contact. It recognises that ‘matching’ the right partners is the only way to ensure a franchise ‘marriage’ lasts longer than the honeymoon period. It knows that, despite its branding, status and support infrastructure, not everyone can be a SUBWAY® franchisee.

So you need to decide whether SUBWAY® is the right way for you. And if it is, then you need to prove it.

SUBWAY® isn’t going to recruit the first person to write out a cheque. So the question isn’t ‘how much does it cost to buy a SUBWAY® franchise?’; it’s ‘how much do you want to own one?’ You’ll need to demonstrate your unswerving belief in yourself and the SUBWAY® brand. You’ll be questioned hard. So expect to be put to the test. And you’ll also have to answer the same question any experienced franchisor will ask; a question SUBWAY® puts this way:

‘Are you able to take advice and guidance from others?’

Because that is absolutely critical. If you decide franchising is the right vehicle for you, then you must be prepared to follow a system. Franchisors don’t want bloody-minded mavericks, they want hard-working entrepreneurs who understand brand parameters.

OK, so how much does it cost to buy a SUBWAY® franchise?

SUBWAY® has overtaken all of its rivals to become the largest quick serve restaurant brand in the world. And all but one of its stores are franchisee owned. More than 2,500 of those are in the UK and Ireland, and it’s growth here continues at pace with an estimated five new stores opening every week.

So SUBWAY® is recruiting. It has identified plenty of areas in the UK where new stores can be opened. But not all of these are in traditional locations. And that’s why the short answer to the question ‘how much does it cost to buy a SUBWAY® franchise?’ is ‘it depends’. It depends on the type of outlet you want, and what is available. Thousands of SUBWAY® restaurants are found on high streets or in shopping precincts. But they are also operated by franchisees in less traditional locations such as universities and hospitals.

That franchise fee of £8,500 remains the same whatever restaurant you open. And that’s well below the average for a full business format franchise. Especially one as high-profile as SUBWAY®. But, of course, the franchise fee is just a small part of the total investment. Once you factor in premises fit out, equipment and working capital, the total costs will be much higher. And, depending on the location, that will be around £100,000.

Can you afford a SUBWAY® franchise?

So how can you get started if, like most people, you don’t have hundreds-of-thousands-of-pounds sitting in the bank? What will you need personally? And how much does it cost to buy a SUBWAY® franchise if you need to go to to the bank for help? As an indicator, you should have 50% of the total capital outlay yourself. The rest can be borrowed through the usual sources. Plus SUBWAY® itself offers an equipment leasing programme to franchisees to help finance their new venture.

Like this article? Learn how much it costs to buy a McDonald’s franchise here>>

If you want a greater insight into the SUBWAY® franchise, you should visit the brands’ own website or register for an open day. There are plenty of restaurant franchises listed on DaltonsBusiness.com too – take a look here >>

Written by Alex Waite, Franchise Consultant

 

Buying a SUBWAY® Franchise – What Does It Cost?