Franchise Failure Rates

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

Subway Franchise Failure Rate: 10.4% SBA Loan Defaults (2010–2019 Federal Data)

10.4%
charge-off rate on 663 SBA 7(a) loans to Subway franchisees, FY2010–2019
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019 — Subway against its industry and all franchises
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Subway 10.4%; Limited-Service Restaurants 10.3%; All franchises 10.2%Subway 10.4%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%2%4%6%8%10%Subway10.4%Limited-ServiceRestaurants10.3%All franchises10.2%
Charge-off rate, SBA 7(a) loans approved FY2010–FY2019: Subway 10.4%; Limited-Service Restaurants 10.3%; All franchises 10.2%Subway 10.4%; Limited-Service Restaurants 10.3%; All franchises 10.2%0%2%4%6%8%10%Subway10.4%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 10 Subway SBA borrowers failed to repay — in line with the Limited-Service Restaurants average of 10.3%.

Between 2010 and 2019, 663 Subway franchisees financed with SBA 7(a) loans. 69 defaulted — a 10.4% charge-off rate, 1.0x 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 franchise failure rate on SBA loans?

Subway 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 franchisees: 663 loans approved between fiscal 2010 and 2019, of which 69 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 compare with other Limited-Service Restaurants franchises?

The table sets Subway'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 versus benchmarks, SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026. Source: U.S. SBA FOIA dataset.
MeasureSubwayLimited-Service RestaurantsAll franchisesAll SBA borrowers
Default (charge-off) rate10.4%10.3%10.2%8.0%
Loans in sample663———
Defaults69———
Average loan size$246,826———

What has Subway SBA lending looked like since 2020?

Since 2020, Subway franchisees have taken 322 new SBA 7(a) loans. 7 have already charged off. Early defaults on loans under six years old are notable — most SBA failures take longer to develop.

Charge-off rate by approval year — share of each fiscal year's Subway SBA 7(a) loans that later defaulted (FY2010–FY2019); years with fewer than 10 loans are outlined, not filled
Charge-off rate by approval year: FY2010 100% of 2 loans; FY2011 33% of 6 loans; FY2012 50% of 4 loans; FY2013 3% of 32 loans; FY2014 11% of 139 loans; FY2015 10% of 148 loans; FY2016 15% of 97 loans; FY2017 5% of 63 loans; FY2018 12% of 101 loans; FY2019 3% of 71 loansCharge-off rate by approval year: FY2010 100% of 2 loans; FY2011 33% of 6 loans; FY2012 50% of 4 loans; FY2013 3% of 32 loans; FY2014 11% of 139 loans; FY2015 10% of 148 loans; FY2016 15% of 97 loans; FY2017 5% of 63 loans; FY2018 12% of 101 loans; FY2019 3% of 71 loans0%10%20%100%2010n=233%2011n=650%2012n=43%2013n=3211%2014n=13910%2015n=14815%2016n=975%2017n=6312%2018n=1013%2019n=71
Charge-off rate by approval year: FY2010 100% of 2 loans; FY2011 33% of 6 loans; FY2012 50% of 4 loans; FY2013 3% of 32 loans; FY2014 11% of 139 loans; FY2015 10% of 148 loans; FY2016 15% of 97 loans; FY2017 5% of 63 loans; FY2018 12% of 101 loans; FY2019 3% of 71 loansCharge-off rate by approval year: FY2010 100% of 2 loans; FY2011 33% of 6 loans; FY2012 50% of 4 loans; FY2013 3% of 32 loans; FY2014 11% of 139 loans; FY2015 10% of 148 loans; FY2016 15% of 97 loans; FY2017 5% of 63 loans; FY2018 12% of 101 loans; FY2019 3% of 71 loans0%10%20%100%’10n=233%’11n=650%’12n=43%’13n=3211%’14n=13910%’15n=14815%’16n=975%’17n=6312%’18n=1013%’19n=71

Loans approved since 2020, by fiscal year — counts only: 7 have charged off to date and most are still outstanding, so no rate is drawn.

Loans approved since 2020: FY2020 62; FY2021 53; FY2022 48; FY2023 43; FY2024 38; FY2025 43; FY2026 35Loans approved since 2020: FY2020 62; FY2021 53; FY2022 48; FY2023 43; FY2024 38; FY2025 43; FY2026 35622020532021482022432023382024432025352026
Loans approved since 2020: FY2020 62; FY2021 53; FY2022 48; FY2023 43; FY2024 38; FY2025 43; FY2026 35Loans approved since 2020: FY2020 62; FY2021 53; FY2022 48; FY2023 43; FY2024 38; FY2025 43; FY2026 3562’2053’2148’2243’2338’2443’2535’26

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

Show the numbers behind this chart
Fiscal yearLoansCharged offRate
FY201022100.0%
FY20116233.3%
FY20124250.0%
FY20133213.1%
FY20141391510.8%
FY20151481510.1%
FY2016971515.5%
FY20176334.8%
FY20181011211.9%
FY20197122.8%
FY202062—outstanding
FY202153—outstanding
FY202248—outstanding
FY202343—outstanding
FY202438—outstanding
FY202543—outstanding
FY202635—outstanding

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's figure rests on 663 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 663 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 figure is recomputed from the public SBA FOIA file on each rebuild.

Frequently asked

What is Subway's franchise failure rate on SBA loans?
Between 2010 and 2019, 663 Subway franchisees financed with SBA 7(a) loans. 69 defaulted — a 10.4% charge-off rate, 1.0x 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 a safe franchise investment?
Between 2010–2019, Subway franchisees defaulted on SBA loans at 10.4% 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 franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 10.4% (69 of 663 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.

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