Subway vs. Jersey Mike's: Which Wins on Data?

Subway and Jersey Mike's compete for the same customer and the same franchisee dollar. Both serve sandwiches. Both have national brand recognition. But the franchise data tells two radically different stories: one brand is contracting, non-transparent, and financially stressed. The other is growing and disclosing revenue.

We compared both brands using their most recent FDDs and SBA 7(a) loan records. The gap is larger than most people realize.

The numbers side by side

Revenue transparency: the biggest red flag

Jersey Mike's discloses $1.4M in average gross sales through its Item 19 financial performance representation. That is above the $1,132,311 QSR category average.

Subway does not disclose any revenue or profit data in its FDD. For a system with 19,502 locations, this is a deliberate choice. Franchisors that withhold Item 19 data typically do so because the numbers would not help recruit new franchisees. In our experience analyzing 3,000+ FDDs, non-disclosure correlates with below-average unit economics. You can read more about why this matters in our guide to evaluating franchise investments.

SBA loan data: 5,097 loans tell Subway's real story

Subway has the largest SBA loan portfolio of any franchise brand in our database: 5,097 loans with a 6.8% charge-off rate. That means roughly 324 Subway-backed loans were charged off, representing millions in lender losses.

Jersey Mike's has 667 SBA loans with a 4.4% charge-off rate. That translates to roughly 18 defaults across the entire loan portfolio. The ~1.5x gap in charge-off rates is notable between direct competitors in the same food category. Explore the full SBA data for both brands on our SBA loan explorer.

Fee structure: Subway charges more for less

Subway's combined royalty and ad fund of 12.5% (8.0% royalty + 4.5% ad fund) is above the 7.2% QSR average. Jersey Mike's charges 11.5% (6.5% royalty + 5.0%ad fund). While the 1.0-percentage-point gap seems small, on Jersey Mike's average gross sales of $1,367,578 it comes to $13,676 a year.

More importantly, Jersey Mike's franchisees are paying 11.5% on disclosed average gross sales of $1.4M. Subway franchisees are paying 12.5% on unknown revenue. When you cannot verify the revenue base, you cannot calculate whether the fee load is sustainable. Visit the Subway brand page and Jersey Mike's brand page for full fee breakdowns.

Unit growth: one expanding, one contracting

Jersey Mike's shows +20.9% net unit growth in its latest FDD, with 259 openings against 13 closures. That pace puts it among the fastest-growing franchises in America.

Subway has been losing locations for years. It now has 19,502, with a -5.2% net unit change in its latest FDD. The company was acquired by Roark Capital in 2023, and restructuring is underway, but the data has not yet reflected a turnaround.

Net unit contraction is one of the strongest predictors of franchisee financial stress. When the system is shrinking, remaining operators face reduced brand investment, inconsistent marketing, and the perception of decline. For Subway, the contraction also means reduced purchasing power and supply-chain leverage.

Investment efficiency: Jersey Mike's dominates

Subway's entry cost ($239K – $537K) has historically been its main selling point. But without revenue data, there is no way to calculate payback period or return on investment.

Jersey Mike's, at $436K – $1.2M, has a wider investment range because store formats vary from inline to endcap to freestanding. Against the top of that range, its average gross sales come to 1.2x the investment. Gross sales are not profit, but they are a number you can underwrite against. Check the franchise ROI rankings to see how it compares.

Verdict Score gap: 65 vs. 98

FranchiseVerdict assigns a composite Verdict Score from 0 (weakest) to 100 (strongest) based on FDD transparency, SBA performance, unit growth, and financial disclosure — higher is better. Jersey Mike's scores 98, among the strongest in the sandwich segment. Subway scores 65 — still a respectable grade, but the weaker of the two.

Jersey Mike's comes out ahead on verdict, and in this post's data it also leads Subway on revenue disclosure, SBA charge-off rate, unit growth and fee load.

Who each brand fits

Subway might still appeal to a buyer looking for the absolute lowest entry cost in the sandwich segment, particularly in markets where the brand still has strong local traffic. But the lack of financial transparency makes it impossible to underwrite the investment with confidence.

Jersey Mike's fits a buyer who wants a revenue figure to underwrite against; on this post's data it leads on revenue disclosure, SBA charge-off rate, unit growth and fee load, with a Verdict Score of 98 out of 100 (higher is better). The higher potential investment ceiling means you need more capital.

The verdict

On the measures in this post, Jersey Mike's is ahead of Subway on revenue disclosure, SBA charge-off rate, unit growth, fee load and Verdict Score. Subway remains one of the most recognized brands in the world, but brand recognition alone is not a measure of franchisee results. Weigh both against your own market, site and capital; this is not investment advice.

Use the franchise screener to compare both brands against other QSR options, or browse all sandwich and sub franchises in the brand directory.

Methodology

Data sourced from Subway's 2025 FDD and Jersey Mike's 2025 FDD, supplemented by SBA 7(a) loan records. SBA charge-off rates include all loan vintages on file. See our full methodology.

The bottom line

Side by side: disclosed revenue ($1.4M vs. undisclosed), SBA charge-off rate (4.4% vs. 6.8%), unit growth (+20.9% vs. -5.2%), and composite Verdict Score (98 vs. 65). Subway's Roark Capital acquisition may eventually reverse the trajectory, but today Subway gives a buyer no revenue figure to underwrite against while charging a 12.5% royalty and ad fund load.

Related franchise research

Continue your research with our Subway franchise cost analysis, Jersey Mike's franchise breakdown, and best food franchises guide.