Subway vs Tropical Smoothie Cafe: franchise research comparison

Investment by format

Format-specific estimates only. Do not combine one format's minimum with another format's maximum.

Franchise fees and ongoing costs

Franchise fee

$1,000 to $15,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review.

Royalty

8% · 8% of total gross sales, payable weekly

Marketing contribution

4.5% (basis not captured; see original filing)

Technology fee

$75/month Restaurant Technology Fee, subject to increases of up to 10% annually

Other fees

POS Hardware-as-a-Service ~$57/month; Sub Club loyalty program fee of 1.9% of gross sales (per transaction); Digital Menu Board Hardware-as-a-Service $155/month

Working capital (FDD Item 7)

Additional Funds line item estimated at $15,000 (low) to $45,000 (high), payable as incurred/as required per Note 8 (detail of Note 8 trimmed from packet).

Working capital is drawn from Item 7. The Investment source below locates the investment section, not an independently verified working-capital scalar.

Financial performance: Item 19

Item 19 captured

No

Metric / basis

none

Reporting period

Not captured

Sample

Not captured

Reported average

Not captured

Reported median

Not captured

Owner income is not captured. Gross sales and EBITDA are not owner pay. Results depend on the disclosed metric, sample and period; consult the full filing.

Unit growth: Item 20

Reporting year

2025

Scope

franchised outlets

Starting outlets

19502

Year-end outlets

18773

Net change

-729

Derivation

ending minus starting outlets

Openings

499

Terminations

4

Non-renewals

46

Other closures

1026

Reacquisitions

148

Transfers

1307

Transfers are not closures. Net change is ending minus starting outlets for the stated scope and year, or complete openings less terminations, non-renewals, other closures and reacquisitions. Missing inputs stay unknown.

SBA loan history

Loan activity

271 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

$225,000

Median loan window

FY2023-FY2026 YTD through 2026-06-30

Median loan sample

159 loans

Historical charge-off share

7.04%

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

92 / 1306

Formula

CHGOFF / (PIF + CHGOFF + EXEMPT) × 100

This is a historical loan-level share, not a franchise failure probability or location survival rate. Loan size is not total investment. Other loan statuses are excluded from the seasoned denominator. Activity combines 7(a) and 504 approvals, excluding canceled and not-funded records; this is not a rolling five-year count. FY2024-25 franchise tags are sparse after directory suspension; fewer tagged loans do not establish brand decline. Recent charge-off cohorts are immature.

Median loan amounts are financing context, not startup cost. The median window is separate from the seasoned charge-off cohort.

Investment by format

Format-specific estimates only. Do not combine one format's minimum with another format's maximum.

Franchise fees and ongoing costs

Franchise fee

$1 to $35,000 · Extracted Item 5 scalar range, not a universal minimum or maximum; formats, eligibility, discounts and waivers require original-filing review.

Royalty

6% · 6% of Gross Sales, payable weekly for the prior week's Gross Sales via EFT

Marketing contribution

5% (basis not captured; see original filing)

Technology fee

BOH (back of house) system: $145 one-time implementation fee plus $179/month subscription fee

Other fees

Digital Ordering (website/mobile app) $54/month; Loyalty Platform & Owned Digital Marketing $75/month per cafe; Gift Card Transaction fee $0.16 per transaction or $18/month per cafe, whichever is less

Working capital (FDD Item 7)

$1,500 to $52,500 estimated for 3 months of working capital, intended to cover possible initial operating losses, additional insurance, rent/security deposits, payroll, utilities, legal/accounting fees, and government payments; franchisee should also have personal living expenses for 3-6 months.

Working capital is drawn from Item 7. The Investment source below locates the investment section, not an independently verified working-capital scalar.

Financial performance: Item 19

Item 19 captured

Yes

Metric / basis

Average and median annual Net Revenue by revenue decile/quartile grouping (top 10/25/50/75%, bottom 10/25/50/75%, and total) for individual franchised restaurants open at least one full year

Reporting period

Calendar years 2025, 2024, and 2023 (most recent: 2025)

Sample

1,431 franchised Restaurants (2025); 1,268 (2024); 1,151 (2023) — restaurants open at least one full year, excluding non-traditional/seasonal locations

Reported average

$978,298

Reported median

$931,173

Owner income is not captured. Gross sales and EBITDA are not owner pay. Results depend on the disclosed metric, sample and period; consult the full filing.

Unit growth: Item 20

Reporting year

2025 (year ended December 28, 2025)

Scope

franchised outlets

Starting outlets

1514

Year-end outlets

1650

Net change

+136

Derivation

ending minus starting outlets

Openings

170

Terminations

21

Non-renewals

1

Other closures

12

Reacquisitions

0

Transfers

81

Transfers are not closures. Net change is ending minus starting outlets for the stated scope and year, or complete openings less terminations, non-renewals, other closures and reacquisitions. Missing inputs stay unknown.

SBA loan history

Loan activity

231 approvals

Activity window

FY2021-FY2026 YTD; snapshot 2026-06-30

Median SBA loan

$507,000

Median loan window

FY2023-FY2026 YTD through 2026-06-30

Median loan sample

133 loans

Historical charge-off share

2.68%

Cohort

7(a) FY2010-2019 approvals

Numerator / denominator

6 / 224

Formula

CHGOFF / (PIF + CHGOFF + EXEMPT) × 100

This is a historical loan-level share, not a franchise failure probability or location survival rate. Loan size is not total investment. Other loan statuses are excluded from the seasoned denominator. Activity combines 7(a) and 504 approvals, excluding canceled and not-funded records; this is not a rolling five-year count. FY2024-25 franchise tags are sparse after directory suspension; fewer tagged loans do not establish brand decline. Recent charge-off cohorts are immature.

Median loan amounts are financing context, not startup cost. The median window is separate from the seasoned charge-off cohort.