This annual list of the top sandwich franchises was fully revised and updated for 2025.
With their variety, popularity, and convenience, sandwiches make a great basis for a franchise. Right now, the future of this market depends upon the struggles around one dominant brand.
The State of the Sandwich Industry
Every day, 47% of American adults eat some sort of sandwich. While 58% of these come from stores, either as ingredients or as completed sandwiches, that still leaves a lot of business for restaurants.
The result is over 20,000 sandwich shops in the US, employing around 545,000 people. While many fast-food chains do their best business at night, sandwich businesses are more likely to be focused on the lunch rush, providing hardworking Americans with a quick meal to get them through the working day.
Sandwich and sub restaurants are currently worth $45.2 billion in the US, following average annual growth of 1.8% over the past five years. While growth isn’t expected to stay this high, the industry is still forecast to reach around $48.5 billion within five years. Despite inflation and financial uncertainty, sales have remained strong overall.
Several sandwich chains have faced closures over the past few years. The pandemic had a mixed impact, thanks to these restaurants’ ability to provide food to go, but its fallout has piled on the pressure. Rising costs for labor and ingredients alongside reduced consumer confidence mean that businesses need to watch their margins.
Nowhere is this more starkly visible than at the best-known sandwich brand, Subway.
Subway Avoids Going Under
Subway isn’t just the biggest sandwich chain in America, it’s the biggest quick service restaurant (QSR) chain, with nearly five thousand more outlets than its nearest rival. It dominates the sandwich landscape, with more than four times as many shops as its next competitor. However, it’s not the biggest seller in QSR, where McDonalds is $20 billion ahead of the pack.
Subway faced difficulties in the early 2020s, shrinking by 10% over three years. While it stayed the biggest business in sandwiches, prospects for new franchisees didn’t look so good. Investment was sought to right the struggling ship, and private equity firm Roark Capital emerged as a buyer.
Roark finalized its acquisition of Subway in May 2024. While the equity firm claimed that it didn’t want to change Subway, it’s impossible that this sort of investor would leave the company untouched. The purchase set billions in debt against the brand’s assets and future earnings. Commentators have been talking for several years about the damage that these sorts of buyouts can do to a company, as private equity takes strong steps to earn its money back fast.
The nature of the Subway deal means that Roark is likely to keep pushing for expansion, whether or not that’s good for existing franchisees. It will also push franchisees to live up to the detail of contracts, leaving less space to adjust to circumstances. Development deals may be more strictly enforced and costly remodels accelerated as the brand grabs for attention.
Subway has been trying to get quick wins with a series of marketing innovations such as new sauces. But the most attention-grabbing move was a limited duration deal offering any footlong sandwich for $6.99. These look like signs of success for some, and the company has returned to Entrepreneur’s Franchise 500 at number 199 after several years off the list.
Uncertainties Ahead
At the same time, there are signs that Roark is applying pressure on Subway franchisees, with an urgent franchisee meeting in August 2024 to discuss declining sales. At the same time, tensions rose around the $6.99 footlong deal, with franchisees pushing back because of what it would cost them. This was followed by further rebellions over the installation of meat slicers and a soft drinks deal that franchisees were ordered to sign without knowing financial details. Relations between franchisor and franchisees are deteriorating.
If this sounds familiar, that might be because the sandwich industry was home to one of the most dramatic failures in franchising. Quiznos became the second most popular sandwich chain in America in the early 2000s. But poor treatment of franchisees led to a series of court cases while sales fell and the company collapsed into bankruptcy. Twenty years on from its peak, there are fewer than 150 Quiznos restaurants where once there were thousands.
However hard Roark squeezes, it’s unlikely to ruin Subway as badly as Quiznos ruined itself. But the tensions with franchisees point to a similar pattern, and the leveraged buyout means the pressure is unlikely to let up. There may be plenty of opportunities to set up Subway franchises in the next few years, but potential franchisees should be wary of what that experience will be like.
Standing Out with Sandwiches
That leaves two paths for entrepreneurs interested in sandwich franchising. Either you can sign up with Subway and take a rough ride in hopes that Roark revives a popular brand, or you can pick another chain in hopes of expanding into spaces where Subway fails. Either way, the tricks for standing out are similar.
Novelty can help in attracting customers, as seen in Subway’s foot-long holiday cookie for Christmas 2024, as well as its sauces. Each sandwich brand has its own signature specials, so look for what makes it stand out.
Like many businesses, sandwich shops perform best in cities, with their large consumer base. Working areas can be particularly valuable, due to the lunch trade.
Pricing is important to competition. While high-income customers will pay extra for a good sandwich, cheaper options draw in the mass of sandwich eaters. Food aggregators like DoorDash mean that price competition is more visible and more cutthroat than ever, as it’s easy for consumers to compare prices and switch outlets.
As aggregator sales make up more than a third of sales for sandwich shops, these platforms have to be factored into marketing plans. Their review can benefit stores selling cheaply to large numbers of customers, and this may nudge the industry further that way. Find out from any franchise you’re considering how they work with these companies and how they make the most of them.
Subway isn’t the only player in the sandwich market, but its disproportionate size warps the market. What happens there over the next few years will define the shape of the sandwich industry.
The Top Sandwich Franchises of 2025
1. Subway
Subway is the undisputed king of sandwich chains in terms of the number of locations, even though the number of domestic locations has been falling in recent years. Unlike many of the largest restaurant franchises, Subway has never gone public and remains a privately-held company. Subway serves up freshly made-to-order sandwiches, wraps, salads, and bowls to millions of guests every day in more than 100 countries around the world. An ever-changing lineup of menu items, promotions, deals, and well-known athletes from various sports in their ads keep Subway at the top of this list.
Founded by Fred DeLuca and Dr. Peter Buick in Bridgeport, Connecticut, in 1965 and franchising since 1974, the number of locations reached a high of 44,830 in 2016 but has since declined to 36,455 (down from the previously reported total of 36,514), of which none are company-owned and 16,322 are located outside the US.
2. Arby’s
Arby’s may be a distant second to Subway on this list, but it’s been growing steadily, if slowly, in recent years. The chain is also holding its ground in refusing to offer any kind of plant-based meat substitute. In fact, its nearly decade-old “We have the meats” slogan represents a doubling-down on the chain’s commitment to real meat on its menu. Arby’s is a legacy brand with real staying power. Franchisees can find a store format to fit almost any location, whether traditional restaurants (freestanding, end-cap, or in-line options) or non-traditional (airports, stadiums, colleges and universities, and more).
Founded in 1964 and franchising since 1965, the number of locations was in decline from 2010-2016 but has since been on the rise and currently stands at a total of 3,613 (up from the previously reported total of 3,602), of which 1,097 are company-owned and 200 are located outside the US.
3. Jersey Mike’s Subs
Jersey Mike’s Subs offers more than two dozen hot and cold sub sandwiches served up on bread (white or whole wheat) baked fresh daily in each store. Any sub on the menu can be ordered Mike’s Way with onions, lettuce, tomatoes, spices (salt and oregano), and the Juice (a mixture of red wine vinegar and olive oil). All the subs on the menu can also be ordered as a salad sub bowl or as a wrap (flour tortilla). Jersey Mike’s commitment to fundraising for both local and national non-profit organizations is truly commendable.
Founded as a single restaurant in Pleasant Point, New Jersey, in 1956 and franchising since 1987, the number of locations has rocketed up over the past 10 years from 710 in 2013 to the current total of 2,861 (up from the previously reported total of 2,557), of which 36 are company-owned and two are located outside the US.
4. Jimmy John’s Sandwiches
Jimmy John’s Sandwiches promises customers quality sandwiches served up freaky fast. One secret of this chain’s success comes from keeping things as simple as possible. No oven-baked sandwiches, just seven meats, two breads (French Bread, 9-Grain Wheat Bread, or a bread-free lettuce wrap), and one cheese (Provolone) to make 25 different sandwiches. There are also seasonal add-ons and limited-time offers to bring additional variety to the menu. Another distinction is being one of the few sandwich chains that offer delivery, and they keep their delivery area small to not compromise on being freaky fast.
Founded by Jimmy John Liautaud in 1983 and franchising since 1993, the number of locations has declined in recent years from a high of 2,818 in 2019 to the current total of 2,644 (up from the previously reported total of 2,637), of which 40 are company-owned and all are located in the US.
5. Charleys Philly Steaks
Charleys Philly Steaks serves up seven different signature Philly-style cheesesteak subs, wings, and fries. It has found success through annual limited-time offers to keep its menu fresh and exciting for customers. While many submarine sandwich chains might have a cheesesteak on their menu, Charleys is the only big chain devoted entirely to the cheesesteak concept. Franchisees can go with a traditional standalone store or opt for a non-traditional “c-store” in a gas station/convenience store or even a big-box retailer such as Walmart.
Founded by Charley Shin in Columbus, Ohio, near the Ohio State University campus, in 1986 and franchising since 1991, the number of locations has been marching steadily up over the past decade from 463 in 2012 to the current total of 792 (up from the previously reported total of 783), of which 57 are company-owned and 68 are located outside the US.
6. McAlister’s Deli
McAlister’s Deli has a wide-ranging menu that includes handcrafted sandwiches, fresh salads, giant spuds (baked potatoes), savory shareables (nachos), soups, sides, and desserts. The chain takes a southern hospitality approach to its atmosphere, has seasonal menu items, is kid-friendly, and makes a big deal of its sweet tea with an annual Free Tea Day each summer. In fact, its famous tea is the best-selling item on the menu. It can also be ordered in 1-gallon jugs.
Founded in Oxford, Mississippi, in 1989 and franchising since 1994, the number of locations has risen in recent years from 312 in 2012 to the current total of 550 (up from the previously reported total of 529), of which 34 are company-owned and all are located in the US.
7. Penn Station East Coast Subs
Penn Station East Coast Subs differentiates itself by featuring hot grilled subs, fresh-cut fries (flash-fried in cholesterol-free peanut oil), and hand-squeezed lemonade. The menu includes 8 cold deli classic subs, a dozen different grilled subs, wraps, salads, cheesebread, chips, and cookies. As with many of the sandwich franchises on this list, catering options are available in terms of ordering platters of sandwiches, chips, cookies, and even box lunches.
Founded by Jeff Osterfeld in Cincinnati, Ohio, in 1985 and franchising since 1987, the number of locations had fallen to 304 in 2020 but has since bounced back to 320 (down from the previously reported total of 321), of which none are company-owned and all are located in the US.
8. Schlotzsky’s
Schlotzsky’s is a fast-casual restaurant chain serving up hot sandwiches on sourdough buns baked fresh each day, along with salads, pizzas, flatbreads, calzones, desserts, and kids meals. Because the chain’s parent company is Focus Brands, some locations feature Cinnabon and Carvel menu items. Its best-selling menu item has always been The Original, a sandwich featuring shaved ham, Cotto salami, Genoa salami, three cheeses (Mozzarella, Cheddar, Parmesan), olives, lettuce, tomato, onion, mustard, and its signature sauce.
Founded by Don and Dolores Dissman in Austin, Texas, in 1971 and franchising since 1976, the number of locations reached a high of 372 in 2018 and has since declined to the current total of 312 (down from the previously reported total of 322), of which 28 are company-owned and all are located in the US.
9. Capriotti’s Sandwich Shop
Capriotti’s Sandwich Shop distinguished itself from other sandwich shops early on with its in-store slow-roasting of whole, fresh, all-natural Butterball turkeys overnight to hand-pull fresh turkey meat each morning for sandwiches. Some of its sandwiches also feature American Wagyu beef. The menu features more than 20 different subs along with salads and sides (coleslaw and soups).
Founded by siblings Lois and Alan Margolet in Wilmington, Delaware, in 1976 and franchising since 1991, the number of locations has been up and down a lot in recent years but recently shot up to 155 (up from the previously reported total of 150), of which 14 are company-owned and all are located in the US.
10. Port of Subs
Port of Subs puts a big emphasis on the quality and unique taste of its sandwiches, which it attributes to freshly sliced, top-quality meats and cheeses, freshly baked bread, and zesty dressings and spices. The menu includes 18 classic cold subs, 10 signature hot subs, specialty subs and wraps, fresh salads, sides (macaroni salad and potato salad), desserts, and several breakfast sandwiches.
Founded by the Larsen brothers in Sparks, Nevada, in 1972 and franchising since 1985, the number of locations has held relatively steady for the better part of a decade and currently stands at 126 (down from the previously reported total of 130), of which seven are company-owned and all are located in the US.
11. PrimoHoagies
PrimoHoagies features old-fashioned style Italian specialty sandwiches with a focus on quality by using Thumann’s gourmet cheeses and meats. Sandwich categories include Italian Classics, Diablos (spicy), Deli Classics, Schwartzies, Philly Cheesesteaks, Primo Cutlet, Tuna Hoagies, Meatballs, Primo Specialties, and Meatless for a grand total of more than fifty different sandwich options, along with a variety of sides and desserts. Unsurprisingly, it’s Classic Italian Hoagie is the chain’s best-selling menu item.
Founded by Richard and Colleen Neigre in Philadelphia, Pennsylvania, in 1992 and franchising since 2002, after falling to 71 locations in 2020, the number of locations has since risen rapidly to the current total of 117 (up from the previously reported total of 102), of which none are company-owned and all are located in the US.
12. CHēBA Hut
CHēBA Hut (pronounced cheeba) is the only sandwich chain on this list aimed directly at the growing legal cannabis culture. The pronunciation of the chain’s name approximates the Spanish Chiba, a slang term for highly potent Colombian marijuana. The core menu features 26 “toasted” subs that are all named for different kinds of marijuana, along with an interesting mix of munchies (appetizers and sides) and several desserts. The company mascot is a bird named Flip, who is always smoking a joint. The vibe is strongly anti-establishment and anti-corporate.
Founded by Scott Jennings in Tempe, Arizona, in 1998 and franchising since 2002, the number of locations has been growing slowly over the past decade from 16 in 2015 to the current total of 66 (up from the previously reported total of 54), of which none are company-owned and all are located in the US.
An Important Note About Our Methodology
The franchises on this list were ranked according to the number of units in the franchise system. If you are a prospective franchisee searching for franchise opportunities that meet or exceed certain performance benchmarks for sales, profits, and return on investment, please check out this list of America’s Most Lucrative Franchises.
