Mr. Sub locations are typically small-footprint units — strip plazas, standalone quick-serve buildings, and food courts have all been common formats for the brand over its long run in Canada. That compact format keeps a resale relatively contained, but the food-court variant in particular brings its own premises rules that a conventional lease doesn't.
Mr. Sub resales follow the franchisor's own approval process on top of the usual purchase mechanics — here's how the two run together.
Getting approved
The offer fixes price and structure, conditioned on franchisor consent and a clean health-unit standing — not just financing.
1–2 weeks†The franchisor reviews the proposed buyer and may exercise a right of first refusal before letting the sale proceed to the next stage.
several weeks, typically†A franchise disclosure document may still be required for this resale — Ontario courts read the resale-disclosure exemption narrowly, so franchisor involvement in the sale can trigger it even where the parties call it a private deal.
assessed early†Getting to closing
For a plaza unit, this is a landlord's written consent to assign the lease; for a food-court unit, it's often a licence agreement with the mall or property manager, which carries different renewal and assignment terms than a standard commercial lease.
2–6 weeks†The incoming owner, or a designated manager, typically completes the franchisor's training program before or shortly after taking over the unit.
1–3 weeks†Funds and keys change hands, inventory is counted and settled, and the franchisor confirms the transfer is complete.
1 day, once conditions are met†Official mrsub.ca franchising page confirms 'hundreds of individuals' have joined its Canadian franchisee network over five decades; owned by MTY Food Group
Long-established national Canadian sub chain with numerous Ontario locations
This is the first real decision in a Mr. Sub resale — and it changes what you're buying, what you're taking on, and how the franchise agreement moves.
| Question | Asset purchase | Share purchase |
|---|---|---|
| What you buy | The unit's assets — equipment, leasehold improvements, inventory, and the franchise agreement's benefit, subject to franchisor consent. | The shares of the operating company — everything it owns, and everything it owes. |
| Seller's liabilities | Generally stay behind with the seller's existing corporation. | Generally come with the company, known and unknown. |
| Franchise agreement | Consent required for the specific unit, often paired with a new agreement in current form. | Consent required for the change of control itself. |
| The premises | A plaza lease needs landlord consent to assign; a food-court unit's licence agreement has its own separate assignment process, often on a shorter renewal cycle. | Usually stays in place, unless the lease or licence agreement has its own change-of-control clause. |
| Health-unit standing | A fresh inspection or notice of change of operator is typically scheduled around closing. | Standing generally continues with the corporation, but the local public health unit is notified of the ownership change. |
| Tax angle | Buyer gets a stepped-up cost base on the assets purchased. | Seller may access the lifetime capital gains exemption on qualifying shares. |
| Typical use | The default for most single-unit Mr. Sub resales. | Less common — occasionally used where an operator holds several units under one company. |
The unit's assets — equipment, leasehold improvements, inventory, and the franchise agreement's benefit, subject to franchisor consent.
The shares of the operating company — everything it owns, and everything it owes.
Generally stay behind with the seller's existing corporation.
Generally come with the company, known and unknown.
Consent required for the specific unit, often paired with a new agreement in current form.
Consent required for the change of control itself.
A plaza lease needs landlord consent to assign; a food-court unit's licence agreement has its own separate assignment process, often on a shorter renewal cycle.
Usually stays in place, unless the lease or licence agreement has its own change-of-control clause.
A fresh inspection or notice of change of operator is typically scheduled around closing.
Standing generally continues with the corporation, but the local public health unit is notified of the ownership change.
Buyer gets a stepped-up cost base on the assets purchased.
Seller may access the lifetime capital gains exemption on qualifying shares.
The default for most single-unit Mr. Sub resales.
Less common — occasionally used where an operator holds several units under one company.
We tell you which structure fits — before you sign anything.
No open-ended hourly surprises — the cost is confirmed in writing before any work begins.
| Type of work | Fee | How it's confirmed |
|---|---|---|
| Straightforward purchase or sale | Starting from $3,388.87 Our charges · taxes included | Confirmed in writing once we see the agreement. |
| Larger or more complex deal | Quoted to scope | Short call → fixed written quote before any work begins. |
| Searches, filings & third-party fees | At cost | Itemized on your invoice, not marked up. |
A single Mr. Sub unit in a strip plaza or standalone building, changing hands between one buyer and one seller with a straightforward premises assignment.
Start my file →A food-court unit with a mall licence agreement to negotiate alongside the franchisor's consent, or a multi-unit operator adding a Mr. Sub location to an existing portfolio.
Book a consultation →Not sure which you are? That's our job to figure out, not yours. As a rough guide, most deals under a couple of million dollars are the first kind — above that, you're usually in Mergers & Acquisitions territory.
The mechanics differ. Many food-court units operate under a licence agreement with the mall rather than a conventional commercial lease, which typically has its own assignment process, renewal cycle, and property-manager approval separate from the franchisor's own consent.
The brand's long history in Canada has produced a well-established base of existing units, so resales of an operating location are a familiar path alongside new development — worth confirming which one a specific listing actually is.
The physical footprint doesn't shrink the legal steps — franchisor consent, disclosure considerations, and the premises assignment still apply the same way they would for a larger format. What it does typically simplify is the equipment and PPSA review, since there's less to search.
Franchisor consent and disclosure considerations apply to each unit on its own terms regardless of your existing operations, though an experienced multi-unit operator's application is often reviewed more quickly than a first-time buyer's.
Most resales count and value saleable inventory on closing day, added to the agreed price. The counting method — who counts, how shrinkage is handled — gets set out in the purchase agreement itself, not improvised on the day.
Related
Where we close franchise resale deals
Treadstone Law is an independent law firm. We act for buyers and sellers of franchise businesses. We are not affiliated with, endorsed by, or retained by Mr. Sub or its franchisor.
Tell us about your Mr. Sub resale — we'll point you the right way and confirm the cost in writing before any work begins.