Data Verification Status: Verified Source — Incomplete Data
The FDD source for Subway has been verified (government filing), but core financial figures were not extracted from this filing — investment range and unit counts are not available. The filing may use non-standard disclosure formats. Request the FDD directly from the franchisor for complete figures. Extracted from 2024 FDD filed with MN CARDS (file #10792). Source: 10792-2024.pdf
Subway
FDD data sourced from 2024 MN CARDS filing (file #10792)
Subway franchise — MN CARDS FDD 2024.
Key Metrics
Total Investment
Not disclosed
Avg Revenue (Item 19)
Not Available
Not Disclosed in Reviewed Filing
Royalty Rate
—
2024 FDD
Total Units
Not disclosed
Franchise Overview
Money: What You Pay, What You Make
Investment costs, ongoing fees, and disclosed revenue — FDD Items 5, 6, 7, and 19
Diligence Scores
Computed from government-filed FDD data. Each score is 0–100. Methodology is public and citation-backed.
System Health
Based on Item 20 outlet trends
Franchisor Strength
Based on Item 21 financials + Items 3-4
Contract Burden
Based on Item 17 terms + Item 12 territory
Economics
Not Rated
Item 19 not included in FDD (voluntary per FTC)
Confidence
Data completeness + extraction quality
Scores are editorial calculations from cited government filings (2024 FDD). They are not investment advice. Missing economics data does not indicate poor economics — it means Item 19 revenue data is unavailable for scoring. See methodology for details.
Data Coverage
Gov-filed FDD · 2024
6/11
items populated
Item 19 — Financial Performance Representation
Item 19 — Economics Not Available
This franchisor chose not to include a Financial Performance Representation in their FDD. Item 19 is voluntary per FTC rules — its absence does not indicate poor economics.
Coverage status: Not Disclosed in Reviewed Filing
Item 19 Data Quality
Before comparing this revenue figure to other brands, review these data-quality flags.
No Item 19
This franchisor did not include a Financial Performance Representation in their FDD. Item 19 is voluntary per FTC rules — absence does not indicate poor economics.
Fee Structure
| Initial Franchise Fee | Not disclosed |
| Total Investment Range | Not disclosed |
| Royalty | — |
| Marketing / Ad Fund | — |
Operations: The Rules You Live By
Contract terms, territory, suppliers, training, and financing — FDD Items 8, 10, 11, 12, 17
Franchisor Financing — Item 10
Financing offered or facilitated by the franchisor — including direct loans, third-party referrals, and key risk clauses.
Third-Party Referrals Only
Franchisor refers to SBA lenders or banks — no direct financing offered.
Source: FDD Item 10 (government-filed disclosure document).
Territory & Encroachment Risk — Item 12
Critical Encroachment Risk
NO exclusive territory — encroachment risk exists; franchisor reserves online/ecommerce sales.
✗ No
Exclusive Terr.
△ Yes
Online Reserved
geographic
territory type
Source: FDD Item 12 (Territory) · Encroachment risk score is editorial analysis based on disclosed terms
Management Quality — Item 2 (Business Experience)
Strong Management Signal
Leadership has prior franchise system experience; long-tenured executives (5+ years); recent leadership changes detected; 7 senior roles identified.
7
Senior Execs
✓ Yes
Franchise Exp.
✓ Yes
Stable Leadership
△ Yes
Recent Changes
Source: FDD Item 2 (Business Experience) · Extraction confidence: medium
Franchisor Support — Item 11
Training program, field support & ongoing resources
Adequate Support Package
Technology/POS system provided.
Source: FDD Item 11
Contract Terms at a Glance
Key franchise agreement provisions — from FDD Item 17. These define your legal relationship.
System Health: Is It Growing or Shrinking?
Unit openings, closures, transfers, and geographic spread — FDD Item 20
Unit Economics — Item 20 (Outlets & Franchisee Information)
Units Opened
+1
Units Closed
-4044
Units Transferred
0
| Net Growth | +1 units |
| Turnover Rate | 202200% |
Outlet Churn Anatomy — Item 20
Exit-type breakdown for the 2024 FDD reporting period. Source: government-filed FDD.
contracting System
System is shrinking — net 1 units. Closures exceed openings. Verify whether this is temporary or structural.
Opened
+1
Exited
-8088
Net
+1
| Exit Type | Count | % |
|---|---|---|
Terminations (forced by franchisor) Franchisor forced closure. Can indicate unit non-performance or relationship breakdown. | 2022 | 25% |
Non-renewals (not offered renewal) Franchisor declined to renew. Similar signal to termination — unit was not retained. | 2022 | 25% |
Reacquisitions (franchisor bought back) Franchisor bought the unit. May indicate strategic consolidation or failing unit rescue. | 2022 | 25% |
Voluntary closures (franchisee-initiated) Franchisee chose to close — often because unit was uneconomical. A high count is concerning. | 2022 | 25% |
50% of exits were franchisor-forced (terminations + non-renewals). Industry benchmark: under 20% is normal.
Franchisor Strength: Can They Support You?
Financial health, litigation history, and audited statements — FDD Items 3, 4, 21
Litigation Summary — Item 3
Active Lawsuits
1
Trend
Lawsuit Types
Franchisor Financial Strength — Item 21
Extracted from audited financial statements filed with the FDD.
Auditor
EY
Financial Strength
adequate
Derived from audited balance sheet
| Franchisor Financials (most recent audited year) | |
|---|---|
| Revenue | $184,601 |
| Total Assets | $396,065 |
| Total Liabilities | $171,059 |
| Equity | $29,171 |
| Net Income | $149,856 |
| Cash & Equivalents | $30,653 |
Franchisor P&L Snapshot
Visual summary of the franchisor's audited financials — from FDD Item 21 / Exhibit A.
Peer Benchmarks
Ranked within services franchises at a under $150K investment tier. All data from government-filed FDDs.
Percentile rank vs. comparable franchises in the same category and investment tier. For revenue and growth: higher percentile = better. For fees and investment: lower percentile = better (bar shows relative advantage).
Trends & Change Signals
Multi-factor trend detection across revenue, unit count, financials, and litigation.
Overall Trend: critical
One or more critical deterioration signals detected. Review carefully before proceeding.
Unit Count (Current Period)
System expanding or stable
Net +1 units; turnover 202200%
Unit Turnover Rate
Critically high — 1 in 4 units changing hands or closing
202200% annual turnover
Buyer Prep: What to Watch For
Key risk areas, questions for existing franchisees, and community insights
Franchisee Interview Prep
Questions to ask current franchisees — generated from red flags, Item 20 exit data, and contract terms in the 2024 FDD. Prioritized: critical questions first.
4044 units closed in the most recent FDD period (2022 were forced terminations). Ask franchisees: what actually drove those closures — was it market conditions, operations, or franchisor decisions?
Look for: Franchisees who left voluntarily vs. those terminated. Any pattern by region, years in system, or franchisee profile.
Turnover rate is 202200% — above industry average. Ask existing franchisees: do they plan to renew? Would they buy this franchise again?
Look for: Unprompted enthusiasm vs. measured or reluctant responses. Ask about year-2 and year-3 revenue vs. projections.
Cure period is only 10 days. Ask: have you ever received a default notice? How did the franchisor handle it — were they reasonable?
Look for: A short cure period combined with aggressive enforcement is a serious risk. Look for franchisees who feel supported vs. managed by threat.
How responsive is your franchisor rep — do they actually help when you have a problem, or are they just checking boxes?
Look for: Specific stories (not just vague positives). Ask about a time they needed help urgently — response time matters.
If you decided to sell your franchise tomorrow, how easy would that be? Has the franchisor ever blocked or delayed a transfer you wanted?
Look for: Transfer fee surprises, right-of-first-refusal complications, or franchisor demanding upgrades before approving a sale.
Item 2 shows recent leadership changes. Ask current franchisees: has the change in leadership affected support quality, speed of decisions, or the culture of the system?
Look for: Whether the new leadership has franchise operations experience. Disruption in field support after leadership transitions is common.
What did your revenue look like in year 1 vs. year 2 vs. now? When did you reach breakeven?
Look for: Year 1 revenue is typically well below Item 19 averages (which often exclude ramp-up units). Expect 12-24 months to reach average.
What did the training actually cover vs. what you needed on day 1? What do you wish you'd learned before opening?
Look for: Gap between training content and operational reality. New franchisees often report the training covered theory but not real-world situations.
Geographic Concentration
State distribution analysis from FDD Item 20 (Table No. 3).
Well Distributed
Present in 27+ states — strong geographic diversification reduces single-state risk.
27
States Active
national
Coverage Type
0.06
HHI (concentration)
13%
Top state (TX)
Units by State (Item 20)
+12 more states
Community
Not FDD dataAnonymous Owner Submissions
No owner submissions yet for Subway. Be the first — your data helps future buyers.
Buyer Memo
One-page printable summary: investment, revenue, flags, and questions to ask.
View Memo →Full Diligence Memo
Item 19, system health, red flags, contract terms — cited to the filed FDD.
Full Analysis →Lender Readiness Pack
SBA-ready summary: investment ranges, scenario economics, franchisor financials.
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Data sourced from the 2024 FDD filed with a state franchise regulator (MN DFI/CARDS filing). Fields not extractable from the PDF are shown as not available. Last updated 2026-04-02.
Extracted from 2024 FDD filed with MN CARDS (file #10792). Source: 10792-2024.pdf
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