SubwayFranchise Cost, Revenue & Review 2026
Data from FDD filing + SBA 7(a) records
FranchiseVerdict summary · 2026
A Subway franchise requires a total initial investment of $239K – $537K, including a $15K franchise fee and an ongoing 8.0% royalty[2]. The 2025 FDD does not disclose unit-level revenue (no Item 19). SBA 7(a) loans show a 6.8% charge-off rate across 6,096 loans[1]. Verdict grade: B. Run a live ROI scan →
Data last verified June 18, 2026 · figures per the 2025 FDD issuance
Overview
- Investment
- $239K – $537K
- 42nd pct Service Resta…
- Avg gross sales
- N/A
- 59th pct Service Resta…
- Royalty
- 8.0%
- 82nd pct Service Resta…
- Units
- 19,502
- 100th pct Service Resta…
- SBA default
- 6.8%
- system-wide median varies by category
Quick verdict · Quick-Service Restaurants · color = vs category peers
Green = >15% above Quick-Service Restaurants avg · No shading = within ±15% · Red = >15% below avg · Source: FDD filings + SBA 7(a)
Data from public FDD filings and SBA records. Not financial advice. Methodology
Franchising since 1974. Systems this mature have refined operations and brand recognition.
84 legal cases disclosed in the FDD. Read Item 3 before signing.
Large franchise systems benefit from brand recognition, supply chain leverage, and proven operations.
Bottom line
- Total investment $239K – $537K including a $15K franchise fee, 8.0% ongoing royalty.
- No Item 19 financial performance data disclosed. The franchisor chose not to publish revenue figures.
- Verdict B (Above Average) with a risk score of 56/100. SBA loan charge-off rate of 6.8% across 6096 loans (near or below the 16% franchise average, based on all SBA 7(a) franchise lending, 2010–2024).
- 84 litigation matters disclosed in Item 3, higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
- Legal entity
- Doctor's Associates LLC
- Parent company
- Subway Funding LLC (direct); Roark Capital Management, LLC (indirect)
- Ultimate parent
- Roark Capital Management, LLC
- Predecessor
- and Affiliates
- Prior franchisor entity
- Incorporated in
- DE
- HQ
- 1 Corporate Drive, Suite 1000, Shelton, CT 06484
- Auditor
- Marcum LLP
- Audited financials
- Franchisor revenue
- $975.3M
- vs $971.9M prior year
Independent franchisee associations
- Franchise Advisory Council (FAC)
- Franchisee Advisory Board
Franchisee-led councils or alliances disclosed in Item 20. Indicates operator voice.
Affiliated brands
- Subway US IP Holder
- SIBV has sold Master Franchise Businesses in Bahrain
Other brands the franchisor or its parent operates (Item 1).
Overview
About
Subway franchisees operate quick-service sandwich shops, managing daily food preparation, customer service, inventory, staffing, and marketing within a high-traffic location (mall, street-level, or co-branded). Operators work extended hours (typically 10–14 hour days) fulfilling orders, managing food costs, and driving local sales against direct competition from other Subway units and national chains.
- CEO
- Carrie Walsh
- Headquarters
- CT
- Founded
- 1965
- FDD year
- 2025
- States available
- 51
FDD Item 7 · 2025 filing · 22 line items
Initial investment breakdown
| Line item | Low | High | |
|---|---|---|---|
| Insurance | $1K | $6K | |
| Indemnification | — | — | |
| Noncompete Violation | $15K | $15K | |
| Confidentiality Violation | — | — | |
| Trademark Violation | $250 | $250 | |
| Limited Time Offering and Auto Shipment | — | — | |
| Dispute Resolution | — | — | |
| Breach of Arbitration/Forum Provisions | — | — | |
| Co-Brand Continuing Fee | — | — | |
| Fees Charged by Co-Brand Franchisor | — | — | |
| Optional Restaurant Listing Service | $100 | $100 | |
| Restaurant Technology Fees | $75 | $75 | |
| Adyen Acquirer Fee - Authorization (until Q2 2025) | $0 | $0 | |
| Adyen Acquirer Fee - Capture (until Q2 2025) | $0 | $0 | |
| Adyen Acquirer Fee - Refund (until Q2 2025) | $0 | $0 | |
| Network and Interchange Fees (Adyen) | $0 | — | |
| Chargeback Fee (Adyen) | $2 | $2 | |
| Global Payments Acquirer Fee (starting Q2 2025) | $0 | $0 | |
| Network and Interchange Fees (Global Payments) | $0 | — | |
| Monthly Terminal Fee | $10 | $10 | |
| Total initial investment | $17K | $22K |
Line items extracted from FDD Item 7. Ranges reflect the franchisor's stated low and high per line. Total is the sum of line-item lows / highs — actual costs may fall outside this range depending on market and build-out scope.
Item 7 · what it costs to open + operate
The Vitals
- Total investment
- $239K – $537K
- Near category avg vs category
- Liquid capital req'd
- $12K – $42K
- Better than avg vs category
- Franchise fee
- $8K – $15K
- Better than avg vs category
- Royalty
- 8.0%
- percentage · typical 6–8%
- Ad fund
- 4.5%
- typical 3–5%
Ongoing fees · Item 6
| Fee | Amount |
|---|---|
| Royalty | 8.0% of gross sales |
| Marketing / ad fund | 4.5% of gross sales |
| Technology fee | $75 |
| Transfer fee | $8K |
| Renewal fee | $4K |
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
vs Quick-Service Restaurants averages
How Subway Compares
Unit growth
Item 20 · unit dynamics
The Growth Chart
- Total units
- 19,502
- Opened
- 444
- Last reporting year
- Closed
- 1,075
- Turnover rate
- 5.5%
- Company-owned
- 0
- Corporate units in the system
3-year detail · Item 20
- Transfers (3yr)
- 2,189
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 18 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator. Not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee contact records (FDD Item 20). Shows states with at least one current operator on file. Full state registration data (Item 12) will appear on a future FDD refresh.
SBA loan performance
Government records
SBA Loan Data
Aggregated from SBA 7(a) and 504 loan disclosures, public data unique to FranchiseVerdict.
- Total loans
- 6,096
- Loan volume
- $1.2B
- Median loan
- $132K
- 50th percentile
- Charge-off rate
- 6.8%
- rates vary by category · see methodology
Historical SBA 7(a) lending data, not predictive of future performance. How SBA charge-off rates are calculated
- Repayment rate (PIF)
- 93.2%
- 5-yr charge-off
- 3.9%
- Loans approved 2021+
- Active lenders
- 752
- Defaults
- 334
Vintage analysis
Subway charge-off rate by loan vintage
Shaded area: recent vintages with few resolved loans; rates may change as loans mature.
Explore lender portfolios on Bank Reports or regional data on State Reports.
Premium insight
SBA Lending Report
Deep-dive into Subway's SBA lending history: lender network, geographic footprint, interest rates, and more.
SBA Lending Report
- Principal loss rate and NAICS industry benchmark
- 10 lenders with concentration factor
- Per-state charge-off rates across 15 states
- Startup risk premium and job creation velocity
- 35-year lending trend
- SBA 504 real estate/equipment data
Instant access. No subscription.
Risk analysis
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
Subway presents HIGH RISK due to undisclosed financials (no Item 19), going concern status, lack of territorial protection, and opaque royalty structure, making ROI validation impossible for prospective franchisees.
Litigation (Item 3)
0 case reference(s): 0 pending, 0 settled.
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · Marcum LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
Supplier relationship · Items 8 & 16
- Franchisor sells you products: No
- Must buy proprietary products: No
- Restricted to system-approved products: No
Score breakdown · what drove the 56 / 100 rating
- 01HIGHGoing Concern status is FALSE — franchisor may face solvency/operational viability issues
- 02MEDNo Item 19 financial performance data disclosed — impossible to validate ROI claims or typical unit economics
- 03MINORRoyalty fee percentage not specified — hidden cost structure creates pricing uncertainty and potential for surprise escalations
- 04MINORNo territory protection — franchisees face direct competition from other Subway locations and channel conflict
- 05MEDUnit growth data unknown — suggests stagnation or decline in system size, typical of mature/struggling QSR franchises
- 06MINORInvestment range ($238k–$536k) is substantial with no corresponding revenue/profit benchmarks to justify capital requirement
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
| Initial term | 20 years |
|---|---|
| Renewal term | 20 years |
| Allowed renewalsℹ | 1 |
| Territory type | exclusive |
| Protected territory | No |
| Online sales rights | Granted |
| Franchisor can compete | Yes |
| Hire a manager? | Allowed |
| Owner-operator | Required |
| Non-compete (years)ℹ | 1 year |
| Right of first refusalℹ | Yes |
| Termination notice | 10 days |
| Termination groundsℹ | 2 |
| Mandatory arbitration | Yes |
| Jury trial waiver | Yes |
| Governing law | Connecticut |
| Litigation count | 84 |
View Item 3 litigation summary
0 case reference(s): 0 pending, 0 settled.
Items 10, 11
Training & Operations
- Classroom training
- 36 hrs
- On-the-job training
- 60 hrs
- Training location
- On-site and corporate
- Franchisor financing
- Offered
- Item 10
- POS system
- SubwayPOS
- Operating tech stack
Items 5 & 11
Franchisor Support
Technology: SubwayPOS
Item 20 · call current owners
Franchisee Contacts
33 owners to call
Name · phone · city · state. Extracted from FDD Item 20
FDD download
Subway · FDD (2025) PDF
Frequently asked questions
Frequently Asked Questions
How much does it cost to open a Subway franchise?
The total investment to open a Subway franchise ranges from $239K – $537K, with an initial franchise fee of $15K. This includes real estate, equipment, inventory, and working capital as disclosed in their Franchise Disclosure Document (FDD).
What do Subway franchise owners earn?
Subway does not disclose average franchise owner earnings in their FDD Item 19. Not all franchisors are required to make financial performance representations. We recommend asking existing franchisees directly about their financial experience.
What is Subway's franchise failure rate?
Based on SBA 7(a) loan data, Subway has a charge-off rate of 6.8% across 6,096 loans, meaning 6.8% of franchise loans were charged off. Charge-off rates are one proxy for franchise risk, though they do not capture all closures. This data comes from FOIA-sourced SBA lending records.
How many Subway franchise locations are there?
As of their most recent FDD filing, Subway has 19,502 total units in the United States, including 20,133 franchised units and 0 company-owned units. 444 new units were opened in the latest reporting year.
Is Subway a good franchise to buy?
FranchiseVerdict rates Subway as a B-grade franchise with a risk score of 56 out of 100, based on our analysis of investment costs, revenue data, SBA loan performance, and growth trends. Our rating is based solely on publicly available FDD and government data; we recommend speaking with current franchisees before making any investment decision. This is not investment advice.
Data sourced from public FDD filings and SBA 7(a) FOIA records. Not financial advice.
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Data extracted from public FDD filings and SBA 7(a) loan disclosures (FOIA). This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.