Franchise Failure Rates

SBA 7(a) loan outcomes · FY2010–FY2019 cohort · Statuses as of June 30, 2026 · Last updated August 17, 2026

Subway Sandwich Shop Franchise Failure Rate: 4.2% SBA Loan Defaults (2010–2019 Federal Data)

4.2%
charge-off rate on 548 SBA 7(a) loans to Subway Sandwich Shop franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Subway Sandwich Shop against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Subway Sandwich Shop 4.2%; Limited-Service Restaurants 10.3%; All franchises 10.2%Subway Sandwich Shop 4.2%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%2%4%6%8%10%Subway Sandwich Shop4.2%Limited-ServiceRestaurants10.3%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Subway Sandwich Shop 4.2%; Limited-Service Restaurants 10.3%; All franchises 10.2%Subway Sandwich Shop 4.2%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%2%4%6%8%10%Subway Sandwich Shop4.2%Limited-Service Restaurants10.3%All franchises10.2%

Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026. Figures also in the comparison table below.

About 1 in 24 Subway Sandwich Shop SBA borrowers failed to repay — well below the Limited-Service Restaurants average of 10.3%.

Between 2010 and 2019, 548 Subway Sandwich Shop franchisees financed with SBA 7(a) loans. 23 defaulted — a 4.2% charge-off rate, 0.4x the Limited-Service Restaurants average of 10.3%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.

What is the Subway Sandwich Shop franchise failure rate on SBA loans?

Subway Sandwich Shop is a Limited-Service Restaurants franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to Subway Sandwich Shop franchisees: 548 loans approved between fiscal 2010 and 2019, of which 23 were charged off. Loan statuses are as of June 30, 2026, and the cohort has matured, so these are settled outcomes rather than projections.

How does Subway Sandwich Shop compare with other Limited-Service Restaurants franchises?

The table sets Subway Sandwich Shop's charge-off rate beside its Limited-Service Restaurants peers and the two economy-wide benchmarks. All figures use the same cohort — SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026 — and the same denominator of resolved loans, so they are directly comparable.

Subway Sandwich Shop versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureSubway Sandwich ShopLimited-Service RestaurantsAll franchisesAll SBA borrowers
Default (charge-off) rate4.2%10.3%10.2%8.0%
Loans in sample548———
Defaults23———
Average loan size$234,564———
Charge-off rate by approval year — share of each fiscal year's Subway Sandwich Shop SBA 7(a) loans that later defaulted (FY2010–FY2019)
Charge-off rate by approval year: FY2010 3% of 147 loans; FY2011 5% of 147 loans; FY2012 5% of 146 loans; FY2013 4% of 108 loansCharge-off rate by approval year: FY2010 3% of 147 loans; FY2011 5% of 147 loans; FY2012 5% of 146 loans; FY2013 4% of 108 loans0%5%10%3%2010n=1475%2011n=1475%2012n=1464%2013n=108
Charge-off rate by approval year: FY2010 3% of 147 loans; FY2011 5% of 147 loans; FY2012 5% of 146 loans; FY2013 4% of 108 loansCharge-off rate by approval year: FY2010 3% of 147 loans; FY2011 5% of 147 loans; FY2012 5% of 146 loans; FY2013 4% of 108 loans0%5%10%3%’10n=1475%’11n=1475%’12n=1464%’13n=108

Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026.

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY201014753.4%
FY201114774.8%
FY201214674.8%
FY201310843.7%

How to read this

A charge-off means a franchisee borrowed, operated, and failed severely enough that the SBA wrote off the government-guaranteed loan. Unlike franchisor marketing or Item 19 disclosures, this is an observed outcome recorded by a federal agency. One caveat cuts the other way: SBA borrowers are typically less capitalized than all-cash buyers, so these rates can overstate risk for well-funded operators.

How reliable is this number?

Subway Sandwich Shop's figure rests on 548 resolved SBA 7(a) loans approved between fiscal 2010 and 2019 — a matured cohort, so the rate is a settled outcome, not a projection. With 548 resolved loans, the sample is large enough that a single default barely moves the figure. Loans approved since 2020 are excluded from the rate because most are still outstanding; they appear on this page as counts only. Every Subway Sandwich Shop figure is recomputed from the public SBA FOIA file on each rebuild.

Frequently asked

What is Subway Sandwich Shop's franchise failure rate on SBA loans?
Between 2010 and 2019, 548 Subway Sandwich Shop franchisees financed with SBA 7(a) loans. 23 defaulted — a 4.2% charge-off rate, 0.4x the Limited-Service Restaurants average of 10.3%. Source: U.S. Small Business Administration FOIA dataset, loan statuses as of June 30, 2026.
Is Subway Sandwich Shop a safe franchise investment?
Between 2010–2019, Subway Sandwich Shop franchisees defaulted on SBA loans at 4.2% versus a 10.3% industry average. This data is one input for due diligence; it is not investment advice.

Cite this page

Franchise Default Rates (2026). Subway Sandwich Shop franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 4.2% (23 of 548 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

https://franchisefailurerates.com/franchise/subway-sandwich-shop/ · Data & methodology · Download the dataset (CSV)