FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for SUBWAY.
Based on 2025 FDD · 3 filings in corpus
Cost and profit at a glance
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.
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
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.
SUBWAY requires a total initial investment of $263K to $630K (midpoint approximately $447K), with an initial franchise fee of $15K. The ongoing fee burden is 12.5% (8% royalty plus 4.5% advertising fund). This is in line with industry norms of approximately 14.2%.
SUBWAY does not publicly disclose Item 19 financial performance data in their FDD. This is a significant transparency gap — franchisees must rely on validation calls and personal research rather than audited financial representations. Prospective buyers should demand current unit-level financials from existing operators during due diligence.
SUBWAY operates approximately 20,133 franchised units. However, the brand has been contracting with a 3.1% net unit decline, which may signal franchisee dissatisfaction, territory saturation, or competitive pressure. The SBA 7(a) loan default rate of 8.1% is in line with industry norms of approximately 9.4%.
Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.
Analysis based on 2025 FDD filing. FDDIQ Editorial Team · Methodology
Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.
Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.
Real lending data from SBA 7(a) loans (2010-2026). 1,219 loans across 50 states.
Source: SBA 7(a) loan data via FOIA. Default rate = charged-off loans / total originated. Industry avg default rate ~7.2%.
Common questions buyers ask about SUBWAY, answered from FDD and SBA data.
The total initial investment for a SUBWAY franchise ranges from $263K to $630K, according to their Franchise Disclosure Document.
SUBWAY charges a 8% royalty fee on gross sales.
The initial franchise fee for SUBWAY is $15,000.
There are approximately 20,133 SUBWAY franchise locations as of 2023.
Profit data for SUBWAY is disclosed in FDD Item 19 (Financial Performance Representation). Check their most recent Franchise Disclosure Document for current figures.
SUBWAY has an SBA loan default rate of 8.1% based on SBA 7(a) loan data.
Whether a SUBWAY franchise is worth it depends on total startup cost, royalty burden, FDD Item 19 economics, SBA loan performance, and local operator execution. FDDIQ compares these signals against similar franchises so buyers can screen the opportunity before paying for diligence.
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