What Does a Subway Franchise Cost
Posted by Admin on 18 Mar 2011 at 11:00 am | Tagged as: cheap franchises
When looking for cheap franchises one business that always seems to rise to the top is Subway. Even after all these years it is still one of the fastest growing franchises in the world. Their sandwiches are great along with their marketing, and they offer a great franchise opportunity. So you may ask “What does a Subway franchise cost?”
First of all, a Subway franchise is actually a very affordable investment. In fact, if you are thinking of a franchise in the fast food industry it is probably the best option out there in terms of capital outlay to return on investment. An average Subway franchise cost is between $115,000 and $260,000 in the US. The following chart shows a breakdown of the different costs involved in opening a Subway.

As you can see one of the biggest expenses involved in opening a Subway restaurant is the real estate improvements. All other costs are actually very reasonable. They even break down the costs involved into three sections. As you can see it’s probably twice as expensive to open a Subway in a large metro area as opposed to a rural location. On the other hand, your location in the metro area may receive 2 to 3 times the traffic a rural location might get.
If after reading the Subway franchise information you decide that this is an investment for you it should be quite easy to get financing even in today’s tough market. A small business loan to open a Subway can be a lot easier than trying to get financing for an independent startup. Lenders are familiar with the success of Subway and trust the company’s judgment on the viability of a franchise in a specific area. Also, there are a number of loan programs in place to stimulate small business growth. Many traditional banks are willing to make these loans because the SBA is willing to guarantee the loan. Also, Subway itself will finance a large portion of the investment in a new restaurant.
Instead of trying to start a Subway franchise from the ground up, another option is to find a Subway franchise for sale. Just because a franchise is for sale does not mean it is struggling. There are a myriad of reasons why an owner wants to sell including retirement, divorce, or a death in the family. Sometimes it can be a great deal to be able to move right into a functioning Subway and take over.
If you do decide a Subway franchise cost is within your means and you want to move forward with purchasing a franchise it is advisable to speak to your attorney. A franchise disclosure document can often times be thicker than most novels and requires a professional to translate the information within. If you decide to buy a Subway franchise for sale from another owner it is also wise to speak with your accountant to make sure is a wise investment.