SBA 7(a)/504 FOIA · FY1991–PRESENT · TENNESSEE
Subway franchise in Tennessee: what the public record shows
Franchisees of Subway in Tennessee have taken 49 SBA loans in the FY1991–present FOIA files (average $204,549). Those approved through FY2020 defaulted less often than franchise loans made in the same years nationally: 1 charge-offs among 42 resolved loans, where about 6.7 would be expected (0.1×). Subway's national ratio is 0.4×. Its latest FDD Item 20 state table reports 524 franchised outlets in Tennessee (fiscal 2025) — about 7.25 per 100k residents.
Loans in TN
49
Charged off (all years)
1 of 42
Loss ratio in TN
0.1×
Loss ratio nationally
0.4×
Source: SBA 7(a)/504 FOIA files (data.sba.gov), borrower state = TN. 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
12,160
statewide, all operators
Per 100k residents
168.2
national 179.9
Versus the country
-7%
thinner
Every business in Subway's industry operating in Tennessee — 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
$503
Tennessee, BLS QCEW 2025
National average
$537
same industry, all states
Versus the country
-6%
cheaper to staff
What Subway's industry actually pays workers in Tennessee, 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 | 538 | 0 |
| 2024 | 526 | 0 |
| 2025 | 524 | 0 |
| System | Loans in TN | Charged off (all years) | Loss ratio in TN | Units in TN |
|---|---|---|---|---|
| Zaxby's | 38 | 2 of 29 | — | — |
| DAIRY QUEEN | 35 | 2 of 26 | — | — |
| Culver's | 20 | 0 of 13 | — | — |
| SCOOTER'S COFFEE | 20 | 0 of 2 | — | 24 |
| Marco's Pizza | 19 | 0 of 11 | — | — |
| Schlotzsky'S | 19 | 7 of 18 | — | — |
| Cicis Pizza | 18 | 6 of 17 | — | — |
| Firehouse Subs | 18 | 0 of 9 | — | 48 |
| Quiznos | 18 | 5 of 14 | — | — |
| Baskin-Robbins | 16 | 2 of 12 | — | — |
| Jimmy John's | 16 | 2 of 10 | — | — |
| Smoothie King | 16 | 3 of 10 | — | — |
Other systems in Subway's sector whose franchisees borrowed in Tennessee. 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.