Can you get an SBA loan for a Subway franchise?

Yes, SBA loans are available for Subway franchises. Historical data shows 1,847 SBA 7(a) loans have been approved for Subway franchisees, with an average loan amount of $265,828. The historical default rate is 5.1%.

Is Subway a good franchise to buy?

Subway shows several positive indicators: established brand with 20,133+ locations, low SBA loan default rate. However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.

Subway

Subway is a quick-service restaurant franchise where franchisees operate retail establishments selling foot-long and other sandwiches, salads, and various food items. The business model involves franchising individual units or multi-unit developments, with initial investments ranging from $238,625 to $536,745 per restaurant, targeting consumers seeking affordable, customizable, and relatively healthy fast food options. The franchise emphasizes a standardized system for food preparation and operations supported by affiliates providing services like advertising, real estate, and technology.

20,133

Locations

Food & BeverageShelton, CTRoark Capital Management, LLCwww.subway.comDisclaimer

Franchise Costs

Franchise Fee

$15,000

Item 5 of FDD

Initial Investment Range

N/A

Item 7 of FDD

Royalty Rate

8.00%

of gross sales

Brand Fund

4.50%

Item 6 of FDD

Fixed Monthly Fees

$215 – $802

Item 6 of FDD

8% royalty + 4.5% ad fund + $75/mo restaurant technology fee + $57/mo POS hardware fee + $1,000-$6,000/yr insurance (approx. $83-$500/mo)

Financial Performance

Item 19 Financial Performance

This franchise did not provide Item 19 financial performance data.

Be careful if you are interested in investing. The lack of financial performance representations may indicate limited data or varying results across franchises.

Extracted Item 19 Section

How Subway Compares

Franchise	Investment	Fee	Royalty	Locations
Subway Current	N/A	$15K	8.0%	20,133
MCDONALD'S	$1.5M – $2.6M	$45K	N/A	12,772
AFC	$45K – $151K	$6K	9.5%	3,572
SONIC DRIVE-IN	$1.7M – $3.1M	$15K	5.0%	3,441
JIMMY JOHN'S	$366K – $728K	$35K	6.0%	2,647
ARBY'S	$645K – $2.5M	$38K	4.0%	2,316
Fast Food Average 126 franchises	$594K – $1.5M	$35K	6.1%	–

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 126 Fast Food franchises by location count.

Locations & Growth

Outlet Growth Over Time

Total outlets at end of each year

Geographic Distribution (2024)

Outlets by state across the United States

Top States

1CA

1872

2TX

1778

3FL

1094

4OH

898

5IL

851

6MI

699

7NY

696

8GA

664

9NC

631

10PA

570

11VA

564

12IN

540

13TN

526

14WA

447

15WI

444

+40 more states

SBA Loan History

Historical SBA 7(a) loan data for Subway franchisees (2010 – 2025)

Total Loans

1,847

Average Loan

$265,828

Total Volume

$491.0M

Default Rate

5.1%

Loans by Year

SBA 7(a) loan activity over time

* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.

Franchisee Contacts

20,180 franchisee contacts on file from official FDD filings.

Name	Address	Phone	Email	SBA Loan
John Smith ABC Franchise LLC	123 Main St Anytown, CA 90210	(555) 123-4567	john@example.com	$350,000 2023 · Active
John Smith ABC Franchise LLC	123 Main St Anytown, CA 90210	(555) 123-4567	john@example.com	$350,000 2023 · Active
John Smith ABC Franchise LLC	123 Main St Anytown, CA 90210	(555) 123-4567	john@example.com	$350,000 2023 · Active
John Smith ABC Franchise LLC	123 Main St Anytown, CA 90210	(555) 123-4567	john@example.com	$350,000 2023 · Active
John Smith ABC Franchise LLC	123 Main St Anytown, CA 90210	(555) 123-4567	john@example.com	$350,000 2023 · Active

20,180 Contacts Available

Unlock all Subway franchisee contacts with verified contact information

Due Diligence

Litigation (Item 3)

Franchisee Cases84

50 actions (likely initiated by franchisees) and 34 franchisor-initiated actions against franchisees in connection with the franchise relationship.

Bankruptcy (Item 4)

Bankruptcy HistoryNo

No bankruptcy history reported

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations

N/A

Non-Renewals

N/A

Reacquired

N/A

Ceased Ops

N/A

Transfers

N/A

Sold to Franchisees

N/A

Projected New

N/A

Frequently Asked Questions

As of the 2025 FDD, Subway has 20,133 franchise locations.

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Also includes FDDs for

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Franchising since 2002