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№ 01Buying & Selling a Business · Franchise Resale · Ontario

Buying a Subway franchise

Subway's relatively low unit investment compared to many quick-service brands has made existing-store transfers between franchisees one of the most common ways to enter — or expand within — the system in Ontario, across strip plazas, food courts, and travel centres. We act as independent counsel for buyers and sellers of individual Subway locations; this page is not affiliated with or endorsed by Subway.

№ 01.1The Resale, End to End

From offer to ownership

Subway resales follow the franchisor's own approval process on top of the usual purchase mechanics — here's how the two run together.

Getting approved

01

Offer & conditions

Because Subway locations sit in a wide range of premises — strip plazas, mall food courts, travel centres — the lease or licence-to-occupy behind each one looks different, so we build site-specific conditions into the offer rather than a generic template.

1–2 weeks
02

Franchise application to Subway

Review of the buyer's background and financial capacity, plus — for food-court or travel-centre sites — a separate approval from the site owner on top of Subway's own review.

3–5 weeks
03

Territory & site review

Subway confirms the site still meets its current location and brand standards before approving the transfer.

2–4 weeks, in parallel

Getting to closing

04

Disclosure considerations

A franchisor-facilitated resale can look exempt from Arthur Wishart Act disclosure requirements — Ontario courts have read that resale exemption narrowly, so we assess whether a disclosure document may still be required.

assessed early, runs in parallel
05

Premises assignment

Food-court and travel-centre sites often run on a licence-to-occupy rather than a conventional lease, and assigning it can move on a different clock than a standalone plaza landlord's consent.

2–5 weeks
06

Training & transfer approval, then closing

Subway's operator training runs alongside final transfer approval, and we track every condition through to the day the store changes hands.

2–4 weeks, then closing
Timelines vary by franchisor approval speedWe track every deadline so nothing lapses.
№ 01.2About the System

About the Subway system

CFA Look For A Franchise listing confirms Subway as a CFA member since 1987 with thousands of Canadian restaurants

Thousands of Ontario locations as part of Subway's large Canadian network

Low relative investment makes existing-store transfers between franchisees a common entry route industry-wide, though not detailed on this listing

№ 01.3Deal Structure

Asset sale or share sale?

This is the first real decision in a Subway resale — and it changes what you're buying, what you're taking on, and how the franchise agreement moves.

QuestionAsset purchaseShare purchase
Franchise agreementNew agreement typically issued to the incoming operator, on Subway's current terms.Existing agreement generally continues, though Subway still reviews the ownership change.
Site licence / leaseFood-court and travel-centre sites often run on a licence-to-occupy rather than a standard lease, needing the site owner's separate sign-off alongside any landlord consent.The licence or lease usually stays in place unless it has its own change-of-control trigger.
Staff (ESA)Employment Standards Act continuity rules typically govern how crew carry over to the buyer.Employment generally continues without interruption — the employer doesn't change.
Tax angleBuyer gets a stepped-up cost base on the assets purchased; an HST election may apply.Seller may access the lifetime capital gains exemption on qualifying shares.
Typical useThe default for the large majority of individual Subway transfers.Occasionally used by multi-store individual operators restructuring how several locations are held.
Franchise agreement
Asset sale

New agreement typically issued to the incoming operator, on Subway's current terms.

Site licence / lease
Asset sale

Food-court and travel-centre sites often run on a licence-to-occupy rather than a standard lease, needing the site owner's separate sign-off alongside any landlord consent.

Staff (ESA)
Asset sale

Employment Standards Act continuity rules typically govern how crew carry over to the buyer.

Tax angle
Asset sale

Buyer gets a stepped-up cost base on the assets purchased; an HST election may apply.

Typical use
Asset sale

The default for the large majority of individual Subway transfers.

We tell you which structure fits — before you sign anything.

№ 01.5Costs & Fees

You'll know the number before we start

No open-ended hourly surprises — the cost is confirmed in writing before any work begins.

Type of workFeeHow it's confirmed
Straightforward purchase or saleStarting from $3,388.87
Our charges · taxes included
Confirmed in writing once we see the agreement.
Larger or more complex dealQuoted to scopeShort call → fixed written quote before any work begins.
Searches, filings & third-party feesAt costItemized on your invoice, not marked up.
Franchisor transfer/application fees, landlord consent costs, and a broker's success fee if the deal was listed — all confirmed once we see your agreement.
Most deals start here

An owner-run business

A single Subway location in a strip plaza or standalone storefront, changing hands between an outgoing and incoming operator on a standard commercial lease.

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A bit more involved

A larger or more complex deal

A travel-centre or food-court location with a site owner's licence-to-occupy instead of a lease, or a deal involving two or more Subway locations closing together.

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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.

№ 01.6Before You Ask

Common questions

Why do so many Subway locations change hands compared to other brands?

Subway's relatively lower unit investment compared to many other quick-service brands has historically made it one of the more common entry points into franchise ownership, and that lower barrier carries through to the resale market too — existing stores turn over more often than in some higher-investment systems. Every deal still needs the same franchisor consent and disclosure review regardless of price point.

I'm looking at a Subway inside a gas station or travel centre — is the process different?

Non-traditional sites like travel centres, gas bars and food courts usually run on a licence-to-occupy rather than a standard commercial lease, which means a separate approval from the site owner on top of whatever Subway itself requires. We flag which kind of premises agreement you're actually assigning before you get too far into the deal.

Can I buy more than one Subway location at once?

Yes — buying two or more locations together, or from the same seller, is common, though Subway typically reviews each location's transfer and site standards individually even when they close on the same day. We coordinate the paperwork so multiple locations can close together where that's what you want.

What happens to the existing lease when I buy the store?

On most asset-sale transfers, the lease or licence-to-occupy needs to be formally assigned into your name with the landlord or site owner's consent — it doesn't happen automatically just because Subway approves the franchise transfer. We treat this as its own workstream alongside the franchisor approval, not an afterthought.

Do I need restaurant experience to buy an existing Subway?

Subway's review process looks at the buyer generally, though the lower relative investment level compared to some brands has historically made it a more accessible entry point for first-time small business owners. We can't speak to Subway's internal approval criteria, but we help make sure your application and financing are in order before you're relying on a specific closing date.

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 Subway or its franchisor.

Ready to begin?

Tell us about your Subway resale — we'll point you the right way and confirm the cost in writing before any work begins.

Prefer to talk first? Call 1-844-900-1070 — it’s free.
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