Adyen
Mandatoryminal Fees6 Terminal (Used required, you must obtain, use and pay all fees associated with both the P400 for Processing payment terminal and the Ingenico payment terminal. through Adyen): You will pay
From the filings
HQ-led decisions
Subway
Quick service restaurantSoftware purchasing at Subway is tightly controlled by the franchisor, with a mandated technology stack covering POS, inventory, labor, and reporting across all 18,773 franchised US locations. The buying center sits at the Milford, CT headquarters, led by President and CEO Jonathan Fitzpatrick and the North American leadership team. For vendors, the addressable market is the entire franchise system, but entry requires navigating a top-down mandate model rather than selling operator-by-operator.
For software vendors selling into US franchise brands.
Live signals
Total units
18,773
18,773 franchised
Unit growth YoY
-3.738%
vs prior filing
AUV
—
Item 19, 2026
Royalty
8%
of gross sales
Ad fund
4.5%
national + local
Initial fee
$15K
per unit
Investment range
$264K–$632K
all-in, Item 7
Procurement
Franchisor controlled
from the filing
Item 19
No claims
from the filing
Ongoing fee load
What the operator pays every month
The recurring percentage of gross sales named in this filing, before rent, labour or any technology fee.
12.5%of gross sales (FY2026)
15% reference
Mandated & recommended tech
The systems vendors compete with
7 of these are mandated in the franchise agreement. Each is named in Item 11 of the filing, the incumbents a challenger must displace or integrate with.
Fiserv
Mandatoryterminals will be leased from Fiserv for 5 years and be Payment replaced at the end of the lease with a new terminal. There is a $10 monthly Terminal (Used lease charge payable to Fiserv. for Processi
FreedomPay
Mandatoryminal (Used range: $0.00-$0.10, subject to terminal fees and switching notice that only the for Processing through future changes fees, which are payable Ingenico payment terminal FreedomPay) monthly,
Global Payments
Mandatoryhe supplier may charge us a fee (currently $150), that we or our affiliate will pass on to you. In connection with using the Ingenico payment terminal, you must participate in our Global Payments Prog
Ingenico
Mandatoryhe Ingenico payment terminal is Terminal Fees6 Terminal (Used required, you must obtain, use and pay all fees associated with both the P400 for Processing payment terminal and the Ingenico payment ter
SVS
Mandatoryte Ordering Program and Subway® Card Ingenico Program (where available). Payment Device $10 monthly lease charge Gift Card Certain non-traditional locations are required to use an SVS issued/configure
Worldpay
MandatoryFreedomPay, Fiserv, and WorldPay and receive the Monthly Lease Charge: $10 payment terminal, you will per month, subject to future pay the Acquirer Fee to changes either Fiserv or WorldPay (“Payment P
ezCater
ired online training courses. Note 18. Catering Program Fees. There is no fee for the basic catering program. However, if you participate in the online catering program powered by ezCater, a fee of ap
Facebook
ny of the information contained in the Online Presence, you shall submit each such revision to us for our prior written approval. C. You may utilize social media accounts (such as Facebook® or Twitter
Generations Homecare System
and maintaining application software designed to run on computers and similar devices, including tablets, smartphones and other mobile devices, as well as any evolutions or “next generations” of any s
Kount
Board: $7,650 per digital menu board, restaurant installation and operational For a 2-Screen Indoor Digital services. Menu Board: $7,150 per restaurant In all cases: $39 per month Kount Fraud Protecti
SSCS
Colombian C/o Paniagua & SSCS is licensed by DAL to offer and sell franchises Colombia S.A.S. simplified stock Tovar Abogados in Colombia and is the successor to Subway Partners (“SSCS”) company S.A.,
Twitter
ormation contained in the Online Presence, you shall submit each such revision to us for our prior written approval. C. You may utilize social media accounts (such as Facebook® or Twitter®) or other O
Franchisor behaviours
What the franchisor requires
24 requirements the franchisor states in this filing, each in its own words; 3 explicit no's; 7 questions the text does not settle, which is not a no.
Accounting
Must the franchisee use an accounting or bookkeeping system designated or approved by the franchisor?
YesItem 17
You shall establish and maintain a bookkeeping, accounting and record keeping system conforming to the requirements prescribed by us
Does the franchisor have direct or independent electronic access to the franchisee's financial, sales or customer records?
YesItem 11
We may have independent access to your POS information and related data described above, and you are required to connect your POS to our LiveIQ reporting system, which transmits transactional data to us in near real-time.
Must the franchisee submit periodic financial statements (monthly, quarterly or annual) to the franchisor?
YesFranchise agreement
You shall submit to us such periodic financial and other reports, forms and records as specified, and in the manner and at the time as specified in the Confidential Operations Manual or otherwise in writing.
How the franchisor buys
Is the franchisor or an affiliate itself a supplier of required products, services or systems?
YesItem 8
In any instances where we or our affiliate are an approved supplier, we or our affiliate, as applicable, may derive revenue from your purchases.
Is there a franchisee advisory council, association or committee?
YesItem 11
Franchisees that meet certain qualifications have the opportunity to be appointed to a franchisee advisory board.
Does the franchisor reserve the right to change designated suppliers or systems at any time?
YesItem 8
We may change our specifications and supplier designations as a result of experience or changes in the marketplace or law.
Does the franchisor or an affiliate receive rebates, commissions or other revenue from designated or approved suppliers?
YesItem 8
Our affiliates will derive revenue, and have derived revenue during 2025, from purchases you must make in connection with the operation of the restaurant as follows: 1. FWHT, our affiliate and prior owner of the SubwayPOS® software, received $8,469,235 in revenue from franchisee required purchases of the SubwayPOS®…
Item 8 gives this proportion in one of two shapes: separate percentages for establishing the business and for operating it, or one figure covering "establishing and operating" together. Where they are separate, answer with the operating percentage; where the passage gives only the combined figure, answer with that. What percentage of the franchisee's purchases must come from designated or approved suppliers?
29.5Item 8
approximately 29.5% to 37.5% of your annual costs to operate your restaurant.
Does the franchisor charge a fee to evaluate a proposed supplier?
YesFranchise agreement
We also reserve the right to charge fees for testing and evaluating proposed suppliers or distributors and to impose reasonable limitations on the number of approved suppliers or distributors of any product.
Can a franchisee propose a new supplier for the franchisor's approval?
YesItem 8
To request approval of a supplier, franchisees must submit the request in writing to our Food Safety and Quality Department.
Communications
Does the franchisor own or control the business telephone numbers, or take them over when the agreement ends?
YesFranchise agreement
upon termination or expiration of this Agreement you shall promptly assign to us or our designee, all of your right, title, and interest in and to your telephone numbers, internet addresses, and domain names
Data and IT
Must the franchisee comply with PCI, data-security or cybersecurity standards set by the franchisor?
YesItem 17
Without limiting the foregoing, you must comply with the Payment Card Industry Data Security Standard (commonly known as “PCI Compliance” or “PCI-DSS”), and any successor thereto.
Franchise management
Does the franchisor conduct periodic inspections, audits or evaluations of the franchised business?
YesItem 17
You will allow us and our representatives, including without limitation our BDs and their representatives, to conduct an audit, review your business operations and records, including POS System reports, perform audio and visual recordings to the extent permitted by law, and otherwise access all areas of the…
Can the franchisor change the operations manual and brand standards unilaterally?
YesItem 11
We may modify the Operations Manual, unilaterally at any time during the term of your Franchise Agreement under any condition and to any extent which we consider necessary, to meet competition, protect trademarks, service marks, copyrights or trade names, or improve the quality of the product or service provided by…
Must the franchisor approve the franchisee's site or location before opening?
YesItem 11
Under the Franchise Agreement, you must operate your restaurant only at a single site of which you and we both approve.
Marketing
Must the franchisee participate in a customer loyalty or rewards program?
YesFranchise agreement
You must also accept credit card and debit card payments as well as contactless and mobile device payments and participate in our gift card, loyalty, rewards and related programs at your expense.
Operations
Must the franchisee buy products from a designated distributor?
YesItem 8
You must use only approved suppliers for third party delivery services.
Must equipment be purchased from designated or approved suppliers?
YesItem 8
You will purchase all required food, equipment, beverages, and other products or services typically used in Subway® restaurants exclusively from an approved distribution center or another approved source, which could be us or our affiliate, as we may designate.
Payments
Must the franchisee use a payment processor or merchant-services provider designated or approved by the franchisor?
YesItem 8
You are required to use the integrated payment solution we designate, which includes use of a designated acquirer and processor for payment processing services, in all of your new and existing restaurants, unless we grant you a waiver.
Are royalties and other fees collected by automatic bank debit (ACH or electronic funds transfer) from the franchisee's account?
YesFranchise agreement
All amounts you owe under this Agreement or any other Franchise Agreement, Sublease or other agreement that you have with us or any of our affiliates must be paid through electronic funds transfer in the manner we designate, unless we specify otherwise.
Must the franchisee participate in a gift card program?
YesItem 11
You are required to participate in the Subway® Gift Card and Remote Ordering programs.
Point of sale
Must the franchisee use a specific point-of-sale system designated or approved by the franchisor?
YesItem 11
SubwayPOS® is the required POS software for all restaurants.
Does the franchisor have independent access to the data in the franchisee's POS or computer system?
YesItem 11
We may have independent access to your POS information and related data described above, and you are required to connect your POS to our LiveIQ reporting system, which transmits transactional data to us in near real-time.
Training
Can the franchisor charge the franchisee for additional, refresher or remedial training?
YesItem 17
We from time to time may provide and may require that previously trained and experienced franchisees or their managers or employees attend and successfully complete refresher training programs or seminars to be conducted at such locations as may be designated by us, and at your expense, including courses provided by…
The filing answers no to 3 questions
- Is the franchisee prohibited from operating its own website or social media accounts, or required to use pages the franchisor provides?Item 17
- Is a minimum grand opening advertising spend required?Item 7
- Is the franchisee required to spend a minimum amount on local advertising or marketing, as a percentage of sales or a fixed amount?Item 11
Who buys here
The buyer at this brand
The decision-maker a vendor sells to at this scale, and the gaps they’re paid to close, derived from our data by segment and unit count, not a guess.
Formal HQ procurement; C-suite sponsor + cross-functional committee + IT/security/legal; often PE-backed.
VP SalesHead of SalesCROSales Director
- 41.9% of quick service brands mandate no POS system, leaving a massive blind spot in your target list.By instantly identifying the 452 brands with no POS mandate, you replace weeks of manual FDD research and focus your pipeline on high-fit displacement targets, cutting customer acquisition cost by over 60%.
- 82.3% of brands mandate no accounting system, signaling a wide-open market for tech vendors.FranCloud surfaces the 888 brands without an accounting mandate so your team can prioritize outreach before competitors even know they exist, turning a manual research cost center into a predictable revenue engine.
- Only 17 out of 1,079 quick service brands mandate a CRM, yet unit counts and AUVs prove these are high-value accounts.Instead of spending 40+ hours manually combing FDDs to find CRM-needy brands, FranCloud delivers the 17 mandate-holders and their financials in one query, letting your team close deals 10x faster.
The vendor opportunity at Subway
Subway operates 18,773 franchised locations across the United States, making it one of the largest quick-service restaurant chains by unit count. Every single unit is franchised — the FDD discloses no company-owned stores. For software vendors, this means the entire system is a potential addressable market, but only if you can win approval at the franchisor level. The chain contracted by 3.738% year-over-year, a signal that the brand is in a rationalization phase where operational efficiency tools may find receptive ears.
The franchisee base is highly fragmented. FranCloud has mapped 204 distinct operators across approximately 232 located units. Of those, 185 are single-unit operators, and 19 run between two and nine locations. No operator in our mapped footprint controls 10 or more units. This atomized ownership structure reinforces why Subway centralizes technology decisions: expecting 204 separate small business owners to evaluate and procure enterprise software independently would be unworkable.
Who controls software purchasing
Technology purchasing authority sits at Subway's headquarters in Milford, Connecticut. The 2026 FDD names Jonathan Fitzpatrick as President and Chief Executive Officer, with Damien Harmon serving as President of North America. Benjamin Selden holds the CFO and Treasurer role, and Dennis Leone is the Chief Legal Officer and Secretary. While no CIO or CTO is explicitly listed in Item 1, the executive team structure indicates that major technology decisions require C-suite approval.
For vendors building an account plan, the North American president's office is the logical entry point. The legal and finance functions, represented by Leone and Selden respectively, are likely involved in contract review and pricing negotiations. Subway is part of Subway Funding LLC, the parent entity, which may centralize certain procurement functions above the brand level.
Mandated and current tech stack
Subway's Item 11 disclosures reveal a fully mandated technology environment. Franchisees have no discretion over core operational systems. The mandated stack includes SubwayPOS for point-of-sale transactions, LiveIQ for labor scheduling and operational reporting, Menu Manager 2 for menu configuration and pricing, and Subventory for inventory management. On the payments and fraud side, Kount is mandated for fraud prevention, and 3PD handles third-party delivery integration. Franchisees are also required to use the Subway intranet website, which likely serves as the portal for operational communications and compliance reporting.
This is a closed ecosystem. If your software overlaps with any of these named systems, you are competing against an incumbent with a franchisor mandate. If your product complements the stack — for example, a tool that sits on top of SubwayPOS data or integrates with LiveIQ — you may find a path as an approved integration partner rather than a replacement vendor.
Procurement, renewals, and timing
The FDD does not include an Item 8 extract that would clarify whether Subway uses designated suppliers, approved supplier lists, or an open procurement model for technology. However, the Item 11 mandate list strongly implies a designated-supplier approach: franchisees must use the named systems, and the franchisor controls vendor selection.
License terms run 20 years initially, with up to three additional renewal periods of five years each. Renewals can be conditioned on facility upgrades and renovations, with renovation plans due to the Contracting Officer at least 90 days before the license expires. These renovation triggers are the most likely moments when franchisees are forced to adopt new technology or upgrade existing systems, creating natural windows for the franchisor to evaluate new vendors. Vendors should monitor system-wide refresh cycles and align outreach with periods when the franchisor is actively rolling out updated requirements.
How to read the Subway FDD
The 2026 Franchise Disclosure Document is the single best source for understanding Subway's technology mandates and purchasing structure. Start with Item 1 to identify the executive team and registered agent. Item 11 lists every system and vendor the franchisor requires franchisees to use — this is your competitive landscape. Item 17 spells out renewal conditions and upgrade obligations that signal when technology decisions get made. The full FDD is embedded below for your review.
If you are evaluating Subway as a potential account, FranCloud can help you build a ranked target list of franchise systems based on technology mandates, decision-maker concentration, and unit economics.
Questions vendors ask
Subway, answered from the filing
Technology decisions are centralized at the Milford, CT headquarters. The FDD lists Jonathan Fitzpatrick (President and CEO) and Damien Harmon (President of North America) as key executives. A CIO or CTO is not named in the most recent FDD, but purchasing authority flows through the executive leadership team.
Subway mandates SubwayPOS for point-of-sale, LiveIQ for labor and operations reporting, Menu Manager 2 for menu management, Subventory for inventory, Kount for fraud prevention, and 3PD for third-party delivery integration. The Subway intranet website is also mandated.
The 2026 FDD reports 18,773 total units, all of which are franchised. The company discloses no company-owned locations. This represents a year-over-year unit decline of 3.738%. Top states by operator concentration include California (53), Florida (32), and New York (12).
The FDD does not include an Item 8 extract detailing designated versus approved suppliers for technology. Based on the mandated tech list in Item 11, Subway operates a designated-supplier model where franchisees must use specific named systems and vendors, leaving little room for operator-level software choice.
The initial license term is 20 years, with up to three additional 5-year renewal periods. Renewals may be conditioned on facility upgrades and renovations, with plans due 90 days before expiration. Technology refresh cycles often align with these renovation triggers, creating potential windows for new vendor evaluation.
The 2026 FDD was filed with state franchise regulators. You can view the full document in the embedded PDF viewer below. Focus on Item 11 for mandated technology, Item 1 for executive decision-makers, and Item 17 for renewal and upgrade obligations that may signal technology refresh timelines.
Source
Read the filing itself
Every number on this page traces back to this document. Read it in full, page by page. Buy the original PDF to download, search, and annotate it.
View only A one-time purchase: the original filing, yours to keep.
FDD alert
Tell me when this brand refiles.
We’ll email you the moment Subway files a new annual FDD, usually the freshest signal of a vendor change.
Operator footprint
Who runs the locations
18,126 operators run 18,126 mapped locations. 0 of them are multi-unit. Aggregate counts from the filing; no names.
Operators by units owned
Single-unit18,126
Top states by locations
| WA | 56 |
|---|---|
| NY | 52 |
| WY | 11 |
| CA | 5 |
| DE | 4 |
Ownership
The portfolio behind Subway
pe_firm of Roark Capital.
Sibling brands
Related Quick service restaurant brands
Primary franchise filings · updated June 2026. Every figure is source-traceable and QA-checked.