Your investment – financial information

A SUBWAY® stores start-up costs are exceptionally low for a franchise of the size and stature and franchisees can often purchase dependable outlet equipment through the SUBWAY® brand’s purchasing power. In fact, in some cases, traditional SUBWAY® outlets can be opened for as little as c. £100,000.

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 €10,000* for outlets is one of the lowest on the market, despite the size of the chain.

One reason the costs are so low is that SUBWAY® outlets feature a very simple operation. No cooking is involved so franchisees don’t have to invest large sums in expensive grills and fryers. Also, the décor package is streamlined so that money isn’t wasted on non-recoverable assets.

* See SUBWAY® Capital Requirements in the Franchise Sales Brochure »

Useful links to financial lenders
Natwest »
RBS »
Lombard »
HSBC »
Lloyds TSB »
Bank of Scotland »

Franchise Capital Requirements

Traditional and Non-Traditional Restaurants (United Kingdom. Effective: 06/2012 GBP)

GENERAL BREAKDOWN FOR:	LOWER COST	MODERATE COST	HIGHER COST	METHOD/WHEN DUE
INITIAL FRANCHISE FEE Non-Traditional	£ 8,500 8,500	£ 8,500 8,500	£ 8,500 8,500	LUMP SUM Upon signing franchise agreement
REAL PROPERTY ** (Property Acquisition Fees)	3,500 1,500	5,000 4,000	10,000 8,000	LUMP SUM Upon signing intent to sublease
LEASEHOLD IMPROVEMENTS (Store Fit-out & Service Utilities)	20,000 20,000	50,000 40,000	80,000 60,000	AS INCURRED Pro rata during construction
EQUIPMENT (Purchase Cost) Lease to buy optional	23,000 20,000	58,000 40,000	80,000 60,000	LUMP SUM Before equipment is ordered
SECURITY SYSTEM (Not including monitoring costs)	1,000 500	3,000 1,500	5,000 3,000	LUMP SUM When you place order
OUTSIDE SIGNS	3,000 1,500	5,000 3,000	10,000 8,000	LUMP SUM When you place order
OPENING INVENTORY	2,500 2,000	3,000 3,000	4,000 4,000	LUMP SUM Within one week of opening
INSURANCE	1,000 1,000	1,500 1,500	2,000 2,000	AS INCURRED Before opening
SUPPLIES	500 500	1,000 1,000	2,000 2,000	AS INCURRED Before opening
TRAINING EXPENSES (Including travel and lodging)	1,500 1,500	1,500 1,500	1,500 1,500	AS INCURRED During training
LEGAL & ACCOUNTING	2,500	4,000	5,000	LUMP SUM Before opening
OPENING ADVERTISMENT	500 500	1,500 1,500	3,000 2,500	LUMP SUM Around opening
MISC. EXPENSES (Business License , utility deposit, small equip . & surplus capital)	2,500 1,000	3,000 2,000	4,000 3,000	AS INCURRED As required
ADDITIONAL FUNDS - 3 MONTHS	10,000 5,000	15,000 10,000	25,000 15,000	LUMP SUM As required
ESTIMATED TOTAL INVESTMENT *** Non Traditional	80,000 64,000	160,000 119,000	240,000 180,00

* Non Traditional location figures are in italic
** This amount is the estimated deposit of 2 months rent payable upon signing the Intent to Sublease.

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.