Quiznos has been a household name in the submarine sandwich world for decades, known for its toasted subs and bold flavors that set it apart from competitors. If you are considering investing in a Quiznos franchise, understanding your financing options is just as important as understanding the brand itself. This complete guide breaks down everything you need to know about Quiznos franchise costs, loan options, and how to secure the capital you need for long-term success.
Founded in 1981 in Denver, Colorado, Quiznos quickly gained a devoted following thanks to its signature toasted sandwiches that offered a hot, flavorful alternative to traditional cold deli subs. At its peak in the mid-2000s, the chain operated over 5,000 locations in the United States and internationally, making it one of the most recognized names in the quick-service restaurant (QSR) industry.
While Quiznos has gone through significant changes over the years, including restructuring and a period of contraction, the brand has been actively working to relaunch and modernize its franchise model. The company has adopted a more flexible and cost-effective approach to franchising, with a focus on smaller footprints, updated menus, and improved economics for franchisees. This makes now an interesting time for entrepreneurs to consider the brand - particularly those who can identify strong, underserved markets where the Quiznos name still resonates with consumers.
The Quiznos model appeals to entrepreneurs for several reasons. The brand has a well-established identity and menu, training programs are built out, supply chains are established, and marketing support is provided. For aspiring franchise owners who want to enter the fast-casual sandwich space, Quiznos offers a recognizable platform with room for growth. However, like any franchise investment, success requires careful financial planning and the right capital structure from day one.
According to franchise industry data reported by sources like Forbes, the average total investment for a QSR franchise ranges from $250,000 to over $1 million depending on the brand, location, and build-out required. Understanding where Quiznos falls in that spectrum - and how to finance it - is the foundation of a successful ownership journey.
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Apply Now - Takes 5 MinutesBefore you secure financing, you need a clear picture of what your total investment will look like. Quiznos franchise costs have evolved as the brand has restructured, and the current investment range is generally more accessible than the peaks of the mid-2000s. Here is a detailed breakdown of the major cost categories you can expect.
The initial franchise fee is the upfront payment you make to Quiznos for the right to use their brand, operating system, and support network. For Quiznos, the initial franchise fee typically ranges from $10,000 to $25,000 depending on the type of location and current promotional programs. This fee is paid directly to the franchisor at the time of signing your franchise agreement.
The cost of your physical location will be one of the largest components of your total investment. Quiznos restaurants can operate in a variety of settings - traditional strip malls, food courts, kiosks, and inline retail locations. Costs vary significantly by market.
Non-traditional locations such as airports, universities, and hospitals may have higher build-out costs but can also command higher sales volumes.
A Quiznos restaurant requires specialized equipment, most notably the brand-defining toaster ovens that create the signature toasted subs. Major equipment categories include:
Your initial inventory of food products, beverages, paper goods, and supplies will typically run $8,000 to $15,000. Quiznos maintains approved supplier relationships to ensure product quality and consistency across the system.
Most franchise agreements and lenders require you to demonstrate adequate working capital - the cash needed to cover operating expenses before your restaurant reaches profitability. For a Quiznos location, plan on setting aside $30,000 to $75,000 in working capital reserves for the first 3 to 6 months of operations.
Training, pre-opening marketing, grand opening expenses, insurance deposits, and technology fees typically add another $10,000 to $25,000 to your startup costs.
All told, a new Quiznos franchise location typically requires a total investment of approximately $175,000 to $325,000, though costs can be higher in premium markets or for non-standard buildouts. The wide range reflects differences in location type, market, and scope of improvements required.
$10K-$25K
Franchise Fee
$175K-$325K
Total Investment Range
5-8%
Ongoing Royalty Rate
1981
Year Founded
With a clear picture of your investment requirements, the next step is to explore the financing landscape. Most franchise owners use a combination of personal equity and borrowed capital to fund their businesses. Here is an overview of the primary financing options available to Quiznos franchise investors.
Most lenders, particularly SBA lenders, will require you to contribute a portion of the total project cost from your own funds. This typically ranges from 10% to 30% of the total investment. Personal equity can come from savings, retirement accounts (via a ROBS structure), equity in real estate, or gifts from family members.
The SBA 7(a) loan is the most versatile and widely used government-backed small business loan program. These loans are ideal for franchise financing because they offer long repayment terms, competitive interest rates, and can be used for a wide range of purposes including working capital, equipment, and leasehold improvements. We will cover SBA loans in greater detail in the next section.
Traditional term loans from banks and credit unions provide a lump sum of capital repaid over a fixed term with regular payments. These loans can be used for franchises but typically require strong credit, established business history, and substantial collateral. Interest rates and terms vary by lender and borrower profile.
Equipment-specific financing allows you to fund the purchase of your kitchen equipment, toaster ovens, refrigeration, and POS systems with the equipment itself serving as collateral. This is often faster to approve than broader business loans and can cover up to 100% of equipment costs. We will cover equipment financing in detail in a later section.
A business line of credit provides revolving access to funds up to a set limit. You draw only what you need, pay interest only on amounts drawn, and replenish availability as you repay. Lines of credit are ideal for managing cash flow, covering unexpected expenses, and bridging gaps in busy and slow seasons.
Some franchisors partner with preferred lenders who specialize in franchise financing. These lenders understand the brand's economics and may offer streamlined approvals for franchisees of supported brands. Always ask your franchisor development team about any preferred lender relationships they maintain.
Experienced franchise investors often use multiple financing products simultaneously. For example, you might use an SBA 7(a) loan for the bulk of your investment, layer in equipment financing for your kitchen buildout, and maintain a separate line of credit for working capital needs. This layered approach lets you optimize terms for each use of funds while preserving maximum flexibility.
For most Quiznos franchise investors, SBA loans represent the single most powerful financing tool available. The Small Business Administration does not lend money directly - instead, it guarantees a portion of loans made by approved lenders, reducing lender risk and enabling more favorable terms for borrowers.
According to the U.S. Small Business Administration, the 7(a) loan program is the most popular SBA lending program and the best fit for most franchise financing needs.
The SBA 7(a) loan is a flexible, all-purpose small business loan that can be used for nearly any legitimate business expense. Key features include:
Franchises are particularly well-suited for SBA lending because lenders can reference the brand's established track record when underwriting individual franchise unit loans. If Quiznos is on the SBA's Franchise Registry (a list of brands that have been pre-vetted for SBA eligibility), the approval process can be significantly faster and simpler.
For Quiznos specifically, the fixed-price menu model and established operating system provide the kind of business predictability that lenders appreciate. The ability to reference industry-standard performance data from existing franchise locations supports more reliable financial projections in your business plan.
The SBA 504 loan is more specialized, designed for major fixed assets like real estate or large equipment. If you are purchasing the commercial property for your Quiznos location - rather than leasing - a 504 loan can provide excellent long-term fixed-rate financing with as little as 10% down. The 504 loan structure involves a bank loan (50%), a Certified Development Company (CDC) loan guaranteed by the SBA (40%), and your equity contribution (10%).
For most Quiznos franchisees who lease rather than own their space, the SBA 7(a) is typically the better fit. However, if you are combining your franchise investment with a real estate purchase, the 504 program is worth exploring with your lender.
To qualify for SBA financing for your Quiznos franchise, you will generally need to meet these criteria:
Working with a lender like Crestmont Capital who specializes in SBA loans can dramatically simplify the process. Our team knows the documentation requirements, the franchise registry process, and how to structure your application for the strongest possible outcome.
The restaurant equipment needed to operate a Quiznos location represents a major portion of your startup investment. Toaster ovens, refrigeration units, food prep equipment, and POS systems can easily total $40,000 to $80,000 or more when you account for installation and initial setup.
Equipment financing is one of the most accessible forms of business lending because the equipment itself serves as collateral. This reduces lender risk substantially and makes it easier to qualify - even for first-time franchise owners with limited business credit history.
When financing restaurant equipment, you have two primary options: buying via an equipment loan or leasing. Here is how to think about each:
Equipment Loan: You borrow money to purchase the equipment outright. You own the equipment at the end of the loan term, which can be 2 to 7 years. Monthly payments are fixed and predictable. This is often the better choice for equipment that will have a long useful life and strong resale value.
Equipment Lease: You pay to use the equipment for a set term without owning it. At the end of the lease, you typically have the option to purchase the equipment, renew the lease, or return it. Leasing often requires less upfront capital and may offer tax advantages. It is a good choice for equipment that becomes obsolete quickly or when you want to preserve cash.
The signature element of any Quiznos kitchen is the proprietary toasting system that creates the brand's distinctive toasted subs. When budgeting for equipment financing, make sure to account for:
Even with a well-funded initial investment, operating a new Quiznos franchise requires ongoing access to working capital. Revenue takes time to build, expenses are immediate, and unexpected costs have a way of arising at the worst possible moments. Having access to flexible working capital financing can be the difference between a smooth launch and a stressful one.
Working capital is the difference between your current assets (cash, inventory, accounts receivable) and your current liabilities (accounts payable, short-term debt obligations). For a restaurant franchise, working capital primarily refers to the cash available to cover day-to-day operations - payroll, inventory, utilities, marketing, and lease payments - while the business ramps up to full profitability.
As reported by CNBC Small Business, a lack of working capital is one of the leading causes of franchise failure in the first two years of operation. Having at least 3 to 6 months of operating expenses in reserve is widely recommended by franchise consultants and lenders alike.
Small business loans for working capital can be structured as term loans (a lump sum repaid over a fixed period) or as revolving lines of credit. Each has its advantages:
Term Loans for Working Capital: Provide a predictable, fixed monthly payment and are ideal for defined, one-time needs like funding your opening inventory, covering the first quarter of payroll, or funding a specific marketing campaign.
Business Line of Credit: Provides revolving, reusable access to funds. You can draw down, repay, and draw again - making it ideal for managing the unpredictable cash flow of a restaurant. A business line of credit is like a financial safety net that is always available when you need it.
Sometimes cash needs arise quickly - a critical piece of equipment fails, a supplier requires a large prepayment for a promotional product, or an unexpected marketing opportunity arises. Fast business loans from alternative lenders can put funds in your account in as little as 24 to 48 hours, with a streamlined application process and more flexible qualification criteria than traditional bank products.
For Quiznos franchise owners who need immediate access to capital - whether for a planned investment or an unexpected expense - fast funding options can bridge the gap while more traditional financing is arranged.
Understanding what lenders look for - and preparing your application accordingly - is one of the most important steps in the financing process. Lenders evaluate franchise loan applications using several key criteria, often summarized as the "5 C's of Credit."
Your personal credit score is typically the first factor a lender evaluates. For most franchise financing products:
If your credit score is below 650, you may still qualify for alternative financing products, though at higher rates. Consider working to improve your score before applying if time permits. If you need funding urgently, bad credit business loans may be an option as a bridge.
For new franchise locations without a business history, lenders will rely heavily on your business plan projections and the franchisor's system-wide performance data. They want to see that the projected cash flows are sufficient to service the debt with a comfortable margin - typically a Debt Service Coverage Ratio (DSCR) of 1.25x or higher.
Lenders want you to have skin in the game. Most programs require a personal equity contribution of 10% to 30% of the total project cost. This demonstrates commitment and reduces the lender's risk. Your equity can come from savings, a retirement account via ROBS, real estate equity, or other liquid assets.
Collateral reduces lender risk by providing a backstop if the loan defaults. For franchise loans, collateral can include:
Prior experience in the food service or retail industry strengthens your application significantly. Lenders want to see that you have the skills and knowledge to successfully operate the business. Your educational background, employment history, and any prior business ownership are all relevant here.
Lenders who specialize in franchise financing will want to review your Franchise Disclosure Document (FDD) and franchise agreement. The FDD contains critical information about the system, including historical financial data from existing locations, the brand's litigation history, and the terms of the franchise relationship. Understanding the FDD before you apply for financing will help you answer lender questions confidently.
Our franchise financing specialists at Crestmont Capital can walk you through every option and help you build the right capital structure for your Quiznos investment. No obligation, no pressure.
Talk to a Specialist TodayThe loan application process for a franchise investment can seem complex, but breaking it into clear steps makes it manageable. Here is a step-by-step guide to getting your Quiznos franchise financed.
Start by calculating your full investment requirement - not just the franchise fee, but the complete picture including build-out, equipment, inventory, working capital reserves, and a contingency buffer. Add 10% to 15% above your best estimate to account for cost overruns, which are common in restaurant construction projects.
Review your credit reports (from all three bureaus), calculate your net worth, and identify the liquid assets you can contribute as equity. Lenders will conduct this analysis anyway - doing it yourself first gives you a realistic sense of what you can qualify for and lets you address any issues proactively.
Loan applications require substantial documentation. Start collecting these materials early:
Working with a lender who understands franchise financing - not just general business lending - can make a significant difference. Franchise-experienced lenders know how to work with franchise agreements, understand how to evaluate FDD data, and have relationships with SBA preferred lenders that can accelerate the process.
Once you have selected a lender and loan program, complete the formal application and submit it with all required documentation. Respond quickly to any follow-up requests - delays in providing information are one of the most common causes of extended loan timelines.
During underwriting, the lender verifies all submitted information, evaluates the risk of the loan, and may request additional documentation or clarification. For SBA loans, this process typically takes 30 to 60 days from a complete application submission. For conventional and alternative financing, timelines can be much shorter - sometimes days rather than weeks.
Once approved, you will sign loan documents at closing, and funds will be disbursed - either directly to your business bank account or to vendors and contractors as appropriate. With your financing in place, you can proceed with signing your franchise agreement (if not already done), securing your lease, and beginning the buildout process.
For veterans considering franchise ownership, the small business loans for veterans programs available through the SBA and private lenders offer additional advantages including reduced fees and enhanced terms. It is worth exploring these options if you have served in the military.
Looking for more inspiration before you apply? Check out how other franchise owners have financed their investments on our Jersey Mike's franchise loan guide as a reference for the type of comprehensive financing analysis that serves franchise owners well.
The total investment to open a Quiznos franchise typically ranges from $175,000 to $325,000 or more depending on location type, build-out requirements, and your market. This includes the franchise fee ($10,000 to $25,000), leasehold improvements, equipment, initial inventory, and working capital reserves.
Yes, SBA loans are commonly used to finance franchise investments. The SBA 7(a) program is the most widely used option for franchise financing. To qualify, you will typically need a personal credit score of 650+, an equity contribution of 10% to 20%, and a solid business plan with realistic financial projections. Working with an SBA-preferred lender can streamline the process.
Most traditional and SBA lenders require a minimum personal credit score of 650. A score of 680 or higher significantly improves your chances of approval and helps you access more competitive rates and terms. Alternative lenders may work with scores in the 600 range, though at higher rates.
The Quiznos initial franchise fee typically ranges from $10,000 to $25,000. This fee grants you the right to use the Quiznos brand, operating system, and proprietary recipes. The fee is paid directly to the franchisor at the time of signing your franchise agreement and does not include build-out or equipment costs.
Financial advisors and franchise consultants typically recommend having 3 to 6 months of operating expenses in working capital reserves when you open. For a Quiznos location, this is generally $30,000 to $75,000 depending on the size of your operation and your local market. This capital covers payroll, inventory, utilities, and other expenses while your revenue builds.
Equipment-specific financing is typically the best choice for funding kitchen equipment. These loans use the equipment itself as collateral, making them easier to qualify for than unsecured business loans. They can cover up to 100% of equipment costs, offer competitive rates, and are usually approved and funded quickly - sometimes within 24 to 48 hours.
You will typically need: personal and business tax returns (2-3 years), recent bank statements, a personal financial statement, a business plan with 3-year financial projections, the Quiznos Franchise Disclosure Document (FDD), your franchise agreement, a resume highlighting relevant experience, and any available information about your proposed location including a letter of intent or lease agreement.
Approval timelines vary significantly by loan type. SBA loans typically take 30 to 60 days from a complete application submission. Conventional bank loans may take 2 to 4 weeks. Equipment financing can often be approved in 24 to 72 hours. Alternative working capital loans may fund in as little as 24 hours. Starting your financing process early - ideally before you sign your franchise agreement - helps ensure capital is available when you need it.
It is more challenging but not impossible. Alternative lenders and certain CDFI programs may work with credit scores below 650, though typically at higher interest rates. Equipment financing may be available with lower credit scores because the equipment serves as collateral. If your credit score needs improvement, working to boost it before applying will give you access to significantly better financing options.
Quiznos has been actively working to revitalize the brand and improve franchisee economics. The fast-casual sandwich segment continues to perform well, and markets where the Quiznos brand name is recognized offer particular opportunities. As with any franchise investment, profitability depends heavily on site selection, local market conditions, operational excellence, and your ability to manage costs. Performing thorough due diligence and working with a franchise consultant is strongly recommended before committing.
A business line of credit is a revolving credit facility that allows you to draw funds up to a set limit as needed, repay them, and draw again. For franchise owners, it serves as an essential financial safety net - available for managing seasonal cash flow fluctuations, covering unexpected equipment repairs, funding a special marketing push, or bridging any temporary gap between expenses and revenue.
A long-term business loan (typically 5 to 25 years) is ideal for large, fixed investments that will generate returns over many years - like a full restaurant build-out or real estate purchase. SBA 7(a) and 504 loans are common long-term options. Long-term business loans offer lower monthly payments than shorter-term products, making them better for managing cash flow during the growth phase of a new franchise.
Quiznos charges an ongoing royalty fee of approximately 5% to 8% of gross sales. This fee is paid regularly (typically weekly or monthly) and covers the ongoing use of the brand, operating system, and corporate support. In addition to royalties, franchisees typically contribute to a marketing fund (often 1% to 2% of gross sales) that funds national and regional advertising campaigns.
Yes. Crestmont Capital works with multi-unit franchise operators and can help you structure financing for multiple locations. Whether you are planning to expand from one unit to several or acquiring an existing multi-unit franchise operation, our team can design a financing strategy that supports your growth objectives.
The franchise fee is just one component of your total investment - it is the fee paid to the franchisor for the right to use the brand and system. The total investment includes the franchise fee plus all other startup costs: build-out and leasehold improvements, equipment, initial inventory, working capital reserves, insurance, training, and any other required expenses. Total investment is always significantly higher than the franchise fee alone.
Becoming a Quiznos franchise owner requires careful financial preparation and the right capital structure. Follow these steps to move from exploration to funding.
Crestmont Capital has helped hundreds of franchise owners secure the capital they need to launch and grow. Our simple application takes just 5 minutes and will not impact your credit score. Get started now.
Apply NowDisclaimer: The information provided in this article is for general educational purposes only and does not constitute financial, legal, or investment advice. Crestmont Capital is a commercial lender, not a financial advisor. Franchise costs, fees, and investment requirements change frequently - please verify current figures directly with Quiznos franchising and review the current Franchise Disclosure Document before making any investment decisions. Always consult with qualified financial and legal professionals.