Subway
Acquisitions
3
Major Deals Covered
$9.6B
Disclosed Deal Value
Subway's largest disclosed acquisition here is Roark Capital Group (Corporate Buyout) for $9.6B in 2024. This page covers 3 major deals from 1989 to 2024, each with its price where disclosed and the reason behind it.
| Company | Year | Price | Purpose |
|---|---|---|---|
| Cajun Joe's | 1989 | Undisclosed | Subway parent Doctor's Associates acquired fried chicken concept Cajun Joe's to experiment with multi-brand quick service franchising. |
| Avanti Commerce (Digital Assets) | 2016 | Undisclosed | Acquired a digital technology team and specific assets to help grow global e-commerce capabilities. |
| Roark Capital Group (Corporate Buyout) | 2024 | $9.6B | Private equity firm Roark Capital acquired 100% of Subway from the founding DeLuca and Buck families for up to $9.55 billion, ending nearly six decades of private family ownership. |
2024
$9.6B
Private equity firm Roark Capital acquired 100% of Subway from the founding DeLuca and Buck families for up to $9.55 billion, ending nearly six decades of private family ownership.
Brought Subway into one of the world's largest restaurant holding groups alongside Focus Brands and Inspire Brands.
Accelerated international master franchise expansion and modernized North American digital restaurant formats.
2016
Acquired a digital technology team and specific assets to help grow global e-commerce capabilities.
Formed the foundation for Subway Digital and the modernization of its mobile ordering app.
Improved digital sales and paved the way for subsequent technology partnerships.
1989
Subway parent Doctor's Associates acquired fried chicken concept Cajun Joe's to experiment with multi-brand quick service franchising.
Provided early franchise system lessons in protein supply chain management.
Later phased out to focus 100% on core Subway submarine sandwich expansion.
Under CEO Jonathan Fitzpatrick, Subway is focused on franchisee profitability and value. Steps since mid-2025 include a one-time cash rebate to franchisees based on first-half 2025 sales, three new regional presidents, a regional marketing structure that replaced the global CMO role in 2026, a relaunched Sub Club loyalty program, and an April 2026 value menu. Abroad, it relies on large master franchisees, such as the 2023 agreement to open about 4,000 stores in mainland China over 20 years.
Subway owns no restaurants. Franchisees pay an upfront franchise fee plus a royalty of 8% or 10% of sales depending on their agreement, along with an advertising fund contribution. Subway also collects vendor rebates through its supply chain, which reached $136.5 million in 2025, or 14.8% of revenue, up from $44.7 million (5.4%) in 2021. The old development agent system, in which regional agents sold and monitored stores for a cut of royalties, was largely brought in-house under John Chidsey. Because stores need no fryers or hoods, they fit into small sites such as gas stations, airports and campuses.
In August 2023, Atlanta-based private equity firm Roark Capital agreed to acquire Subway in an all-cash transaction valued at up to $9.55 billion USD. The acquisition formally closed in April 2024 following U.S. Federal Trade Commission (FTC) regulatory clearance, marking the conclusion of 58 years of private family ownership.
Following the deaths of co-founders Fred DeLuca in 2015 and Dr. Peter Buck in 2021, ownership rested in the hands of second-generation heirs and charitable foundations. With CEO John Chidsey having stabilized same-store sales and restored profitability, the families chose to monetize their equity in a historic liquidity event.
Roark Capital is a private equity giant specializing in franchised consumer businesses, managing over $35 billion in assets. Roark controls Inspire Brands (Dunkin', Arby's, Buffalo Wild Wings, Sonic Drive-In, Jimmy John's, Baskin-Robbins) and Focus Brands (Auntie Anne's, Cinnabon, Jamba, Carvel).
Yes. The FTC conducted an in-depth antitrust review to examine whether Roark Capital's simultaneous ownership of Subway and rival submarine sandwich chain Jimmy John's would create anti-competitive market concentration. The FTC approved the transaction without requiring divestitures.
In June 2023, Subway signed a master franchise agreement with Shanghai Fu-Rui-Shi Corporate Management Co. (FRS). FRS acquired the exclusive rights to manage and expand Subway across mainland China, committing to open at least 4,000 new restaurants over 20 years in one of the largest corporate franchise agreements in fast-food history.
Under CEO John Chidsey, Subway spent tens of millions of dollars systematically buying out regional independent Development Agents in North America and Europe, taking corporate control of franchise operations and re-selling territorial rights to professional multi-unit corporate franchisees.
In 2023, Subway partnered with private equity firm McWin Capital Partners, granting McWin master franchise rights to oversee and expand Subway operations across the UK, France, Germany, and the Czech Republic, accelerating store remodels.
Throughout its history, Subway avoided acquiring competing restaurant brands, focusing 100% of its resources on expanding the single Subway brand globally through pure-play franchising.
The transaction featured $8.95 billion in guaranteed upfront cash at closing, with an additional $600 million earn-out payable if Subway achieves specific EBITDA growth milestones over a two-year post-acquisition period.
Roark maintained Subway's dual corporate headquarters in Shelton, Connecticut, and Miami, Florida, operating Subway as an independent portfolio platform alongside Inspire Brands while sharing supply chain procurement networks.
JPMorgan Chase was hired by Subway's board of directors in late 2022 to conduct a competitive global auction, managing bids from sovereign wealth funds, major institutional pension managers, and top-tier private equity consortiums.
Under Roark, Subway is not expected to make large company acquisitions. Instead, it will leverage Roark's multi-brand ecosystem to cross-promote consumer brands (such as the Cinnabon and Auntie Anne's Sidekicks partnership) and pursue multi-unit franchise operator roll-ups.
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