factual

When did Subway become an Affiliated Program of Carls Jr.?

Carls_Jr Franchise · 2025 FDD

Answer from 2025 FDD Document

Doctor's Associates LLC ("Subway") franchises retail eating establishments which sell foot-long and other sandwiches, salads and other food items under the Subway® mark. Subway began offering franchises in 1974. Subway became an Affiliated Program through an acquisition in April 2024. Subway has its principal place of business at 1 Corporate Drive, Suite 1000, Shelton, Connecticut 06484. As of December 31, 2024, there were 19,502 Subway franchises and no company-owned locations operating in the United States and an estimated 16,120 franchises operating outside the United States. Subway has never offered franchises in any other line of business.

Source: Item 1 — THE FRANCHISOR, AND ANY PARENTS, PREDECESSORS, AND AFFILIATES (FDD pages 8–20)

What This Means (2025 FDD)

According to the 2025 Carls Jr. Franchise Disclosure Document, Subway became an Affiliated Program of Carls Jr. through an acquisition in April 2024. As of December 31, 2024, Subway had 19,502 franchises and no company-owned locations operating in the United States, with an estimated 16,120 franchises operating outside the United States. Subway franchises retail eating establishments that sell foot-long and other sandwiches, salads, and other food items under the Subway® mark and began offering franchises in 1974.

This affiliation means that Carls Jr. is connected to the Subway brand through common ownership or control, specifically through private equity funds managed by Roark Capital Management, LLC. However, the FDD clarifies that none of the affiliated franchisors, including Subway, are obligated to provide products or services to Carls Jr. franchisees. Despite this, a franchisee may choose to purchase products or services from these affiliated franchisors.

For a prospective Carls Jr. franchisee, this affiliation could present potential networking or partnership opportunities with other franchise brands under the same umbrella. However, it's important to note that the day-to-day operations of a Carls Jr. franchise are unlikely to be directly impacted by this affiliation, as there is no obligation for Subway or other affiliated programs to provide direct support or services. The franchisee's primary focus will remain on operating the Carls Jr. restaurant according to the brand's standards and guidelines.

It is important for potential franchisees to understand the nature and extent of these affiliations and how they might indirectly benefit or affect their investment. While the FDD provides this information, further due diligence, including discussions with existing franchisees and the franchisor, is recommended to fully assess the implications of these relationships.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.