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.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
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)
Franchise Stats
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 to Other Fast Food Franchises
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
Subway Current | N/A | $15K | 8.0% | 20,133 |
| Burger King | $2.1M - $4.7M | $50K | 4.5% | 19,732 |
| 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 |
Fast Food Average 127 franchises | $605K - $1.5M | $35K | 6.1% | - |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 127 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
+40 more states
SBA Loan History
Historical SBA 7(a) loan data for Subway franchisees (2010 - 2025)
Loans by Year
* Data sourced from SBA 7(a) FOIA loan records. Default rate calculated from charged-off loans.
Franchisee Contacts
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Due Diligence
Litigation (Item 3)
50 actions (likely initiated by franchisees) and 34 franchisor-initiated actions against franchisees in connection with the franchise relationship.
Bankruptcy (Item 4)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How many Subway franchise locations are there?
As of the 2025 FDD, Subway has 20,133 franchise locations.
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.
Interested in Subway?
Talk to a franchise advisor to get personalized guidance and learn if Subway is the right fit for you.
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