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, disclosing revenue, and delivering some of the strongest unit economics in QSR.

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 $1,338,874 in average gross sales per location through its Item 19 financial performance representation. This is above the QSR category average of $1.1M and puts Jersey Mike's in the upper quartile of sandwich concepts we track.

Subway does not disclose any revenue or profit data in its FDD. For a system with nearly 20,000 US 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 over 1,400 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 346 Subway-backed loans were charged off, representing millions in lender losses.

Jersey Mike's has 420 SBA loans with a 2.1% charge-off rate. That translates to roughly 9 defaults across the entire loan portfolio. The 3.2x gap in default rates is one of the widest we see 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 fee load of 12.5% (8% royalty + 4.5% ad fund) is among the highest in QSR. Jersey Mike's charges 11.5% (6.5% royalty + 5% ad fund). While the 1-percentage-point gap seems small, it compounds significantly on a $1M+ revenue base.

More importantly, Jersey Mike's franchisees are paying 11.5% on disclosed average revenue of $1.34M. 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 grew by 11.6% in the most recent reporting period, adding roughly 310 new locations. This pace makes it one of the fastest-growing franchises in America.

Subway has been losing locations for years. At its peak, the system had over 27,000 US units. It now has 19,502, a decline of roughly 7,500 locations. 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 lower 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 $182K–$1.41M, has a wider investment range because store formats vary from inline to endcap to freestanding. At the midpoint ($797K) with $1.34M in revenue, the revenue-to-investment ratio is approximately 1.7x. That is competitive with most QSR concepts and well above the category average. Check the best franchise ROI rankings to see how it compares.

Risk score gap: 72 vs. 5

FranchiseVerdict assigns a composite risk score from 0 (lowest risk) to 100 (highest risk) based on FDD transparency, SBA performance, unit growth, and financial disclosure. Subway scores a 72, placing it in D-grade territory. Jersey Mike's scores a 5, the lowest possible tier and an A grade.

The 67-point gap is among the largest between any two direct competitors in our database. It reflects the accumulation of negative signals in Subway's FDD: no revenue disclosure, high fee load, declining unit count, and elevated SBA defaults.

Who should buy each brand?

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 is the stronger choice by every quantitative measure. Higher disclosed revenue, lower SBA defaults, strong unit growth, and a 5-out-of-100 risk score. The higher potential investment ceiling means you need more capital, but the data shows that capital is working harder.

The verdict

This is not a close call. Jersey Mike's outperforms Subway on revenue disclosure, SBA performance, unit growth, fee efficiency, and overall risk scoring. Subway remains one of the most recognized brands in the world, but brand recognition alone does not make a franchise investment sound. If you are choosing between these two sandwich concepts, the data points decisively toward Jersey Mike's.

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 default rates include all loan vintages on file. See our full methodology.

The bottom line

Jersey Mike's is outperforming Subway on every measurable axis: disclosed revenue ($1.34M vs. undisclosed), SBA default rate (2.1% vs. 6.8%), unit growth (11.6% vs. declining), and composite risk score (5 vs. 72). Subway's Roark Capital acquisition may eventually reverse the trajectory, but the current data does not support investing in a brand that refuses to disclose what its franchisees earn while charging a 12.5% fee load. In sandwich franchising, this is not a close call.

Related franchise research

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