ScorecardWorth It?HistoryDatabaseCompareDistress Signals
QSRNo Item 19Item 19: ✗ Not DisclosedHigh Confidence · 85/100

Subway Franchise Cost and Profit

FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for Subway.

Based on 2025 FDD · 4 filings in corpus

FranchiseIQ Score
43
D
High Risk
Composite score from 3 risk dimensions. Click for breakdown ↓
Health Score
F
29/100
5/7 metrics · High confidence

Cost and profit at a glance

How much does a Subway franchise cost and make?

Based on FDDIQ's FDD corpus, a Subway franchise shows an estimated initial investment of $263K – $630K. The franchisor does not provide enough Item 19 data for a clean profit estimate. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.

Startup Cost
$263K – $630K
Total initial investment
Profit / Revenue
Item 19 not disclosed
FDD Item 19 signal
Payback Signal
Estimate unavailable
Modeled return metric
SBA Default Rate
8.1%
Loan repayment history
Compare franchise costs →Estimate franchise ROI →Check SBA default rates →Browse QSR franchises →Compare similar franchises →

Quick fee read: $15K franchise fee · 12.5% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.

10-brand free summary pilot · report unlocked

Subway is in the free pilot, so the buyer-grade evidence is visible on this page.

Use this as a source-document screening summary: FDD investment range, royalty/ad burden, Item 19 economics, SBA repayment outcomes, unit movement, and comparable-brand context. Treat missing or low-confidence fields as diligence flags — not as blanks to ignore.

FDD-derived fieldsSBA matched where availableItem 19 labeledUnit movement checkedHigh confidence
What is unlocked
• Risk Engine rationale and sub-scores• Growth Forecast table when forecast data exists• Fee, cost, SBA, and comparable-brand context
Need another brand? Unlock the 10-report pack →Compare against the sample report
Total Investment Range$263K – $630K
MinMid: $447KMax

Key Metrics

Franchise Fee
$15K
Royalty Rate
8%
Ad Fund Rate
4.5%
Total Burden
12.5%
Royalty + ad fund
Units (2023)
20,133
-631 vs prior yr
Net Unit Growth
↓ -3.1%
Year over year
Net Closure Rate
3%
From FDD Item 20

Financial Analysis

Cash-on-Cash Return
-
Annual estimated return
Payback Period
-
Break-even timeline
SBA Default Rate
8.1%
vs ~7.2% industry avg
Median Revenue
-
Item 19 disclosed

Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.

Subway vs. QSR Average

MetricSubwayQSR Avg
SBA Default Rate8.1%▲9.4%
Cash-on-Cash Return - 14.2%
Total Investment$447K$380K

Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.

SBA Loan Performance

Real lending data from SBA 7(a) loans (2010-2026). 1,219 loans across 50 states.

Default Rate
8.1%
Moderate
Total SBA Loans
1,219
50 states
Total Loan Volume
$348.6M
SBA 7(a) approved
Avg Loan Size
$286K
Per franchisee
Loan Status Breakdown
659
Paid in Full (54%)
315
Currently Active
73
Charged Off (3.4% by $)
$12.0M
Total Charged Off ($)
● Paid● Active● Charged Off

Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.

Compare

Subway vs Chick-fil-A, Inc.Subway vs Loving CupSubway vs Donut King

Multi-Brand Operators · Who Runs This Brand

Westar Capital
View Hub
Phoenix, AZ· 90+ locations
25 locations of this brand
Part of a multi-brand portfolio. See how operators structure holdings, financing, and growth →
Explore all multi-brand franchise operators →

Similar Franchises · QSR

Chick-fil-A, Inc.
Revenue Only
$427K–$2.3M
Loving Cup
No Item 19
$166K–$242K
Donut King
Limited Data
$211K–$332K
Chick-fil-A, Inc.
$427K – $2.3M
Loving Cup
$166K – $242K
Donut King
$211K – $332K
Crust Gourmet Pizza Bar
$210K – $264K

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Questions to Ask Before You Sign

5 data-driven questions every Subway franchise buyer should ask.

  1. 1.What is Subway's SBA default rate compared to its competitors?Learn more →
  2. 2.Does Subway disclose Item 19 financial performance representations?Learn more →
  3. 3.What is the net unit growth trend over the past 3 years?Learn more →
  4. 4.What is the franchisee termination and transfer rate per Item 20?Learn more →
  5. 5.What do the FDD litigation disclosures (Item 3) reveal about franchisor legal history?Learn more →
Generate attorney questions for Subway →Validation call guide →
Data sourced from publicly filed Franchise Disclosure Documents (FDDs) submitted to state franchise regulators. SBA loan data from public SBA 7(a) records. Information reflects the most recent FDD filing in our database and may not reflect current terms. Always verify with the franchisor's current FDD before making any investment decision. Not legal or financial advice.

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