SBA 7(a)/504 FOIA · FY1991–PRESENT · MASSACHUSETTS
Subway franchise in Massachusetts: what the public record shows
Franchisees of Subway in Massachusetts have taken 186 SBA loans in the FY1991–present FOIA files (average $120,140). Those approved through FY2020 defaulted at a rate not clearly different from franchise loans made in the same years nationally: 20 charge-offs among 164 resolved loans, where about 28 would be expected (0.7×). Subway's national ratio is 0.4×. Its latest FDD Item 20 state table reports 257 franchised outlets in Massachusetts (fiscal 2025) — about 3.6 per 100k residents.
Loans in MA
186
Charged off (all years)
20 of 164
Loss ratio in MA (not clear)
0.7×
Loss ratio nationally
0.4×
Source: SBA 7(a)/504 FOIA files (data.sba.gov), borrower state = MA. Loss ratio = charge-offs among loans approved through FY2020 ÷ the charge-offs expected if each had defaulted at the national rate for franchise loans approved the same year; 1.0× is the same. Only charged-off and paid-in-full loans count. A ratio is shown at 30+ such loans; “not clear” marks a ratio chance alone could produce. The all-years count mixes every era and is evidence, not a rate to compare. Borrowers are matched to the brand by name and SBA franchise code; some matches may be wrong or missing.
Businesses in this industry
14,561
statewide, all operators
Per 100k residents
204
national 179.9
Versus the country
+13%
denser
Every business in Subway's industry operating in Massachusetts — franchised and independent — from the Census Bureau's County Business Patterns (2023), against 2024 population estimates. Counter-intuitively, density is not a warning: across the brand-state cells in the loan data, denser markets have historically charged off less often than the thinnest (see the research page). A crowded market is usually proven demand; an empty one is often empty for a reason.
Avg weekly wage, this industry
$636
Massachusetts, BLS QCEW 2025
National average
$537
same industry, all states
Versus the country
+18%
costlier to staff
What Subway's industry actually pays workers in Massachusetts, from the Bureau of Labor Statistics' Quarterly Census of Employment and Wages (2025), employment-weighted across counties. This cost signal is independent of the FDD: a market can look demand-rich above and still carry a margin headwind here if local wages run hot for the sector.
| Fiscal year | Franchised | Company-owned |
|---|---|---|
| 2023 | 274 | 0 |
| 2024 | 267 | 0 |
| 2025 | 257 | 0 |
| System | Loans in MA | Charged off (all years) | Loss ratio in MA | Units in MA |
|---|---|---|---|---|
| Honey Dew Donuts | 63 | 6 of 46 | 0.8×NOT CLEAR | — |
| Domino's Pizza | 52 | 3 of 35 | 0.6×NOT CLEAR | — |
| Quiznos | 44 | 11 of 35 | 1.2×NOT CLEAR | — |
| Dunkin' | 33 | 0 of 21 | — | — |
| EDIBLE ARRANGEMENTS | 26 | 0 of 19 | — | 24 |
| Ben & Jerry'S Ice Cream | 19 | 1 of 16 | — | — |
| Tropical Smoothie Cafe | 17 | 0 of 4 | — | 30 |
| CRUMBL | 12 | 0 of 6 | — | 21 |
| DAIRY QUEEN | 11 | 0 of 4 | — | — |
| JERSEY MIKE'S | 11 | 0 of 2 | — | 56 |
| Cold Stone Creamery | 9 | 4 of 7 | — | — |
| Boston Market | 7 | 0 of 5 | — | — |
Other systems in Subway's sector whose franchisees borrowed in Massachusetts. A loss ratio appears only where at least 30 loans approved through FY2020 have resolved; “—” means too few.
A broker is usually paid by the franchisor to place you. I'm paid only by you, never by a franchisor you're considering — and the job is pressure-testing Subway’s numbers, including talking you out of a bad deal.