Subway Franchise PR: From Fogle Fallout to a $9.6B Sale
Subway handled its 2015 spokesperson crisis with a two-step statement: on July 7, 2015 it said it had suspended its relationship with Jared Fogle, and by August 18, 2015 it said it had already ended it. Nine years later, Subway reported nearly 37,000 restaurants and completed a sale to Roark Capital on April 30, 2024, a deal the Wall Street Journal reported at about $9.6 billion.
A franchise system shares one face, so when that face fails every owner pays. The Subway record shows what the chain did well, what it did late and what the numbers can and cannot prove.
What happened when Subway cut ties with Jared Fogle?
Subway said on July 7, 2015 that it had agreed with Jared Fogle to suspend their relationship after FBI agents and Indiana State Police raided his home, according to the Associated Press report that day. The company said it was "very concerned" and believed the raid was tied to a prior investigation of a former employee of the Jared Foundation.
The same report says Subway removed references to Fogle from its website by late afternoon. On August 18, 2015, Subway told reporters it had "already ended" the relationship, according to a second Associated Press report published that day.
What worked and what did not: Pulling the website pages the same day shows Subway moved on the asset it controlled. The two-step wording gave reporters a second story, because the August 18 report repeats the earlier "suspend" language next to the later "already ended" line. EPR's reading is that one decision stated once would have produced one story.
How much of Subway's growth rode on one spokesperson?
Subway had about 11,800 U.S. stores in 1999, the year before Fogle's first Subway commercial, and about 27,000 U.S. stores plus about 16,000 overseas by 2014, according to an Associated Press profile. Fogle became the chain's pitchman after losing 245 pounds, in part by eating Subway sandwiches, per the same profile.
The profile also says Fogle was not the only reason for Subway's growth. That caveat matters for any attempt to blame the later decline on one man.
What did the crisis leave behind for the franchise system?
Subway counted about 44,000 restaurants worldwide in July 2015 and nearly 37,000 in April 2024, a drop of about 7,000 restaurants. The 2015 figure comes from the Associated Press, the 2024 figure from Subway's April 30, 2024 release, and the subtraction is EPR's own.
None of the sources isolate how much of that drop came from the Fogle case. In the 2024 release, Subway said it had posted three years of sales growth and positive global net restaurant growth for the first time since 2016. Treat the 7,000 figure as the size of the problem, not as the cost of one scandal.
Why did a private equity firm pay about $9.6 billion for Subway?
Roark Capital, a private equity firm that specializes in franchise businesses, reportedly paid about $9.6 billion for Subway, according to the Wall Street Journal as reported by Hartford Business Journal. Subway announced the sale in August 2023 and did not disclose the price. The Journal cited Dealogic data to call it the second-largest U.S. acquisition of a U.S. restaurant chain since at least 1995.
Subway CEO John Chidsey said the transaction reflects the chain's long-term growth potential, and Roark's portfolio includes Arby's, Dunkin', Buffalo Wild Wings and Sonic, per Franchising.com's report on the deal. Nation's Restaurant News notes the sale was the first change of ownership since Fred DeLuca founded the chain in 1965, and that Subway began franchising in 1974.
What can franchise brands copy from the Subway record?
Franchise brands can copy three Subway moves, acting on owned assets the same day, reporting net growth in numbers and naming owners first at a sale, and should avoid one: a two-step statement.
Move
What Subway did
Takeaway
Act on owned assets fast
Removed Fogle references from its website on July 7, 2015
Pull pages and ads the day the facts change
State the decision once
Said "suspend" in July, then "already ended" in August
Avoid a two-step statement
Report net growth in numbers
Told the market in April 2024 it had positive global net growth for the first time since 2016
Owners and buyers trust counts over slogans
Speak to owners at the sale
Said it would "Build a Better Subway" for franchisees, employees and guests
When did Subway end its relationship with Jared Fogle?
Subway said on July 7, 2015 that it had suspended the relationship. By August 18, 2015, the company told reporters it had already ended it, according to the Associated Press.
How many restaurants does Subway have?
Subway reported nearly 37,000 restaurants in more than 100 countries and territories in its April 30, 2024 release.
Who owns Subway?
Roark Capital completed its purchase of Subway on April 30, 2024. It was the first change of ownership since the chain was founded in 1965.
How much did Roark pay for Subway?
Subway did not disclose the price. The Wall Street Journal reported about $9.6 billion, according to Hartford Business Journal. Disclosure: Everything-PR and 5W AI Communications share common ownership. Everything-PR reports independently on the communications industry. Editorial decisions are made by Everything-PR's editorial team. This article was drafted with AI assistance and checked against the cited reports and company releases.
Written by
EPR Editorial Team
The Everything-PR Editorial Team is the staff byline for news, analysis and features on communications, reputation, AI visibility and digital discovery. Everything-PR has published since 2009. AI tools assist with research and drafting, and every article is reviewed by a human editor before publication. Coverage follows the Editorial Policy, and substantive corrections are noted on the article under the Corrections Policy.
