Smoothie King vs Subway
Smoothie King vs Subway: Smoothie King costs $312K to $1.4M to open; Subway costs $263K to $630K. Smoothie King has 529 units, Subway has 3,936. SBA loan history: Smoothie King = 707 loans (8.2% default); Subway = 6,080 loans (5.5% default). The franchise with more SBA funded units, a lower SBA default rate, and a lower royalty load is the safer financing bet; see the comparison below.
Smoothie King vs Subway: Capital, Scale & Lending Analysis
Analysis based on FDD filings and SBA 7(a) loan level data. Each pairing reflects a unique combination of capital intensity, system scale, and financing path.
Capital Intensity
Subway requires the lower minimum capital commitment ($263K vs $312K for Smoothie King), a 18% spread. Initial franchise fees come in at $30K for Smoothie King versus $15K for Subway, Subway has the lower entry fee. Ongoing royalty load is 6% for Smoothie King and 8% for Subway, giving Smoothie King the lighter per-unit drag on operating income.
System Scale & Tenure
On scale, Subway operates 3,936 units to Smoothie King's 529, roughly 7× the system size. Subway has been operating 61 years (founded 1965) versus 53 for Smoothie King (founded 1973), a 8-year tenure gap that affects unit-economics maturity and FDD revision history.
SBA Lending Profile
Subway has the deeper SBA lending track record, with 6,080 7(a) approvals compared with 707 for Smoothie King. Smoothie King's peak SBA year was 2016 (43 loans); Subway's peak was 2003 (515 loans). Smoothie King's more recent peak generally indicates fresher lender appetite. Smoothie King has the most SBA funded units in TX, with 195. Subway leads in CA, with 570. Borrowers should pick the brand whose strongest SBA state matches their own state for warmer lender introductions. Average SBA loan size on funded Smoothie King deals is $272K vs $195K for Subway, useful as a sizing anchor when modeling your own unit.
Risk Signal
SBA default rates are 8.2% for Smoothie King and 5.5% for Subway, Subway has the cleaner SBA loss record by 2.7 points. PeerSense FPI scores come in at 68 (Strong) for Smoothie King and 60 (Moderate) for Subway, giving Smoothie King the stronger composite signal across SBA performance, lender appetite, and operational consistency.
Health & Performance
FPI Score | 68/100 | 60/100 |
Health Tier | Strong | Moderate |
Confidence | N/A | N/A |
Lending Trend | Declining | Declining |
SBA Lending
SBA Loans | 707 | 6,080 |
SBA Volume | – | – |
Default Rate | 8.2% | 5.5% |
Peer Tier | major | major |
Investment & Costs
Total Investment | $312K to $1.4M | $263K to $630K |
Franchise Fee | $30K | $15K |
Royalty Rate | 6% | 8% |
Ad Fund | 2% | 4.5% |
Liquid Capital | $100K | $40K |
Net Worth Required | $300K | $310K |
Financial Performance (Item 19)
Item 19 Status | Disclosed | Not Disclosed |
System Size & Operations
Total Units | 529 | 3,936 |
Franchised Units | 529 | 3,936 |
Company Owned | – | – |
Term Length | 10 yrs | 20 yrs |
Brand Information
Year Founded | 1973 | 1965 |
Franchising Since | 1960 | 1974 |
Years Franchising | 66 yrs | 52 yrs |
Headquarters | Dallas, TX | Shelton, CT |
Category | Limited-Service Restaurants | Limited-Service Restaurants |
Website | ||
FDD Year | 2025 | 2025 |
Which Is Better, Smoothie King or Subway?
Lower upfront capital required
Subway
Smoothie King: $312K starting · Subway: $263K starting
More SBA lender confidence
Subway
Smoothie King: 707 SBA loans · Subway: 6,080 SBA loans
Lower SBA default rate
Subway
Smoothie King: 8.2% · Subway: 5.5%
Larger system & brand presence
Subway
Smoothie King: 529 units · Subway: 3,936 units
Lower ongoing royalty load
Smoothie King
Smoothie King: 6% · Subway: 8%
More lender financing options
Subway
Smoothie King: 169 unique lenders · Subway: 831 unique lenders
Decision matrix uses publicly disclosed FDD and SBA loan data. Not a recommendation. Your best franchise depends on capital, market, operating capacity, and risk tolerance.
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Smoothie King vs Subway: Franchise Funding Comparison
Comparing Smoothie King and Subway is about more than brand preference. It's about which franchise fits your financial profile and funding strategy. Investment ranges from $263K to $1.4M.
Smoothie King has 707 SBA loans on record and Subway has 6,080. Those totals are cumulative history rather than a measure of current appetite. Recent lending activity is trending down for at least one of these brands, so current lender appetite has to be checked deal by deal rather than assumed from the totals.
SBA 7(a) loans are the most common franchise funding vehicle, offering up to $5M with as little as 10% down. PeerSense connects franchise buyers with the specific lenders who have approved loans for these brands, not generic referrals, but lenders with actual franchise lending track records.
Data sourced from SBA loan records, Franchise Disclosure Documents, and public filings. Updated regularly. Not financial advice, consult with a lending professional before making investment decisions.
Smoothie King vs Subway, Frequently Asked Questions
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Which has a lower SBA default rate, Smoothie King or Subway?
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Page Review
Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman