Quick Verdict · who it fits
Subway fits owner-operators looking for a mature food & beverage concept.
The numbers a buyer needs first — straight from the filing.
Initial investment (Item 7)
$227K - $630K
Franchise fee (Item 5)
$15K
Royalty (Item 6)
8% + 4.5% ad
System size (Item 20)
18,773 +499
Agreement term
20 yrs
Years in business
8+ yrs
Item 3 litigation
57 suits
Model Subway's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.
Buyer qualifications
•No exclusive territory✓Semi-absentee eligible✓No bankruptcy disclosed•57 Item 3 cases
Data extracted from the 2026 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.
Drag to your projected annual sales. Royalty 8% + ad fund 4.5% on gross sales.
PROJECTED ANNUAL SALES$500,000
$100k$2M
Royalty (8%)
—
Ad fund (4.5%)
—
Total / year
—
▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration
Free AI summary — the first read on the filing.
18,773
Total units open
499
Units opened last year
1,224
Units closed last year
4 terminated + 46 not renewed + 148 reacquired + 1,026 other reasons
−725
Net unit growth
What our analysis flagged across the 2026 filing.
4
Risks to review
3
Strengths identified
4
Questions to ask
How Subway ranks against 751 Food & Beverage peers we've analyzed.
Initial investment
28th pct · of 751 peers
Franchise fee
4th pct · of 751 peers
System size
99th pct · of 751 peers
Food & Beverage industry averages
Avg investment
$589K - $1.4M
Avg franchise fee
$37K
Avg system size
261
Franchises analyzed
751
Closest concepts by category and investment.
| Brand | Item 19 | Fee | Investment | Royalty | Units |
|---|---|---|---|---|---|
| Subway | None | $15K | $227K - $630K | 8% | 18,773 |
| Sambazon USA Franchising Llc (sambazon Acai Bowls)Similar price | None | $30K | $380K - $630K | 5% | 0 |
| McDonald's USABiggest system | Disclosed | $45K | $701K - $2.8M | 4–5% | 13,062 |
| Vintage Hospitality GroupTop-rated in category | Disclosed | $50K | $3.5M - $6.4M | 5.5% | 33 |
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Free explainers to go deeper before you sign.
Brand Analysis
Yes. Subway is one of the most completely franchised systems in American retail: 18,773 US restaurants at the end of 2025 and zero company-owned outlets. The franchisor is Doctor's Associates LLC, a Roark Capital company, and its 2026 FDD charges a $15,000 fee against an 8% royalty and a 4.5% advertising fund.
Brand Analysis
Chipotle reported 4,186 company-operated restaurants and 15 international licensed restaurants as of June 30, 2026. None are franchised, there is no FDD, and there is nothing to apply for. Qdoba is the franchised version of the same order line, and its 12/25 FDD puts a traditional restaurant at $548,100 to $1,294,000.
Brand Analysis
Cracker Barrel Old Country Store, Inc. reported 656 company-operated stores in 43 states as of January 30, 2026, and the brand has never sold a franchise. Huddle House and Another Broken Egg cover the same daypart with filed FDDs, at $555,375 to $1,715,275 and $792,500 to $1,804,000.
Subway requires a $15,000 initial franchise fee and a total initial investment range of $227,000–$630,000, per the most recent FDD on file.
Subway is franchised by DOCTOR'S ASSOCIATES LLC, the franchisor entity of record on its Franchise Disclosure Document. Item 1 of the FDD discloses the franchisor's corporate history, parents, and predecessors.
No. Subway does not include a financial performance representation in its FDD. Prospective buyers should rely on validation calls with existing franchisees and benchmark against industry medians.
Franchisees pay a royalty of 8% and an advertising fund contribution of 4.5% on gross sales as defined in Item 6 of the FDD.
As of their 2026 FDD, Subway has 18,773 total locations, with 499 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.
No. Subway does not grant exclusive territory rights under Item 12. The franchisor retains the right to operate or grant additional units inside or adjacent to your trade area.
Per the FDD, Subway discloses an initial agreement term of 20 years, a renewal fee of $3,750, a transfer fee of $7,500. Review Items 10 and 17 for the full renewal and termination provisions.
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