Subway was going through significant challenges and changes – largely due to the death last year of Subway founder, Fred de Luca, said BurgerFuel chairman Peter Brook.

Franchise Brands had not confirmed it would continue its involvement with BurgerFuel and the New Zealand company was not prepared to enter the US without that support, he said. A decision was expected in the next few weeks.

BurgerFuel posted a $1.1 million loss in the year to March 31, compared to a $817,000 profit the previous year. The loss was largely attributed to spending related to the planned US expansion.

The chain opened 12 new stores in the past year in New Zealand, Australia and the Middle East, taking the total number of BurgerFuel stores to 78.

Terrorism and instability in Kuwait resulted in lower sales than originally anticipated and in January the two BurgerFuel stores there were closed . A new store opened in May in Baghdad was performing well.

BurgerFuel pulled out of Iraq in 2014 due to an increased threat from Islamic State militants.