1851

The nearly $10 billion acquisition of franchise giant Subway has been delayed as the deal is now reportedly being investigated by the U.S. Federal Trade Commission (FTC).&nbsp;That’s according to a recent report from&nbsp;<a href="https://www.politico.com/news/2023/11/21/feds-probe-10b-deal-for-subway-sandwich-chain-00128268?utm_source=1851franchise.com&utm_medium=article&utm_campaign=subway-acquisition-reportedly-under-investigation-by-the-ftc-2724363" target="_blank" rel="nofollow">Politico</a>, which states the FTC launched a probe into the agreement earlier this month. Roark Capital, the Atlanta, Georgia-based private equity firm, announced&nbsp;<a href="https://1851franchise.com/subway-sold-to-owner-of-dunkin-jimmy-johns-and-arbys-2723441#most-recent-stories">back in August</a> that it would be purchasing Subway for an estimated $9.55 billion, including debt. Now, as Politico reports, that deal is being investigated over concerns whether the deal will give Roark an unfair monopoly in the fast-food sandwich market.&nbsp;Roark controls Inspire Brands, which also owns Jimmy John’s, Arby’s, Baskin-Robbins, Buffalo Wild Wings, Dunkin’, Rusty Taco and Sonic Drive-In. Roark’s portfolio also includes Focus Brands, which consists of Cinnabon, Auntie Anne’s, Jamba and McAlister’s Deli and Sclotzsky’s.&nbsp;Although the investigation is still in its early stages, Politico reporter Josh Sisco noted that any resolution is “likely months away” because merger reviews by antitrust regulators can take as long as a year or more.&nbsp;“The FTC can either sue to block the merger, reach an agreement with the companies that alleviates its concerns or take no action at all,” wrote Sisco.&nbsp;Subway is currently the largest U.S. sandwich chain, with just over 20,000 U.S. locations and more than 37,000 units worldwide. According to&nbsp;<a href="https://www.restaurantbusinessonline.com/financing/ftc-apparently-investigating-subway-sale?utm_source=1851franchise.com&utm_medium=article&utm_campaign=subway-acquisition-reportedly-under-investigation-by-the-ftc-2724363" target="_blank" rel="nofollow">Restaurant Business Online</a>, if Roark successfully acquires the brand, the firm would operate chains with nearly $49 billion in total system sales, more than McDonald’s in the U.S., based on 2022 sales.&nbsp;Some lawmakers, such as Democrat Massachusetts Senator Elizabeth Warren, have been vocally supportive of the FTC’s investigation.“We don’t need another private equity deal that could lead to higher food prices for consumers,”&nbsp;<a href="https://twitter.com/SenWarren/status/1728810999355175212?utm_source=1851franchise.com&utm_medium=article&utm_campaign=subway-acquisition-reportedly-under-investigation-by-the-ftc-2724363" target="_blank" rel="nofollow">Warren wrote on X</a>. “The FTC is right to investigate whether the purchase of Subway by the same firm that owns Jimmy John’s and McAlister’s Deli creates a sandwich shop monopoly.”&nbsp;However,&nbsp;<a href="https://www.linkedin.com/in/prhedger/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=subway-acquisition-reportedly-under-investigation-by-the-ftc-2724363" target="_blank" rel="nofollow">Patrick Hedger</a>, who serves as the executive director at the&nbsp;<a href="https://www.protectingtaxpayers.org/press/tpa-slams-the-ftcs-foolish-investigation-of-subway-deal-progressive-attacks-on-so-called-sandwich-shop-monopoly/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=subway-acquisition-reportedly-under-investigation-by-the-ftc-2724363" target="_blank" rel="nofollow">Taxpayers Protection Alliance</a>, recently suggested that such an investigation by the government agency is foolish and unwarranted.&nbsp;“The FTC’s facially ridiculous hypothesis that this deal could create a sandwich shop monopoly not only ignores every principle of sound economics but also calls the agency’s larger judgment into question,” said Hedger. “This is a wake-up call that none of the current FTC’s novel theories of competitive harms should be accepted without close scrutiny.”&nbsp;It remains to be seen how this investigation’s outcome will shape the landscape of the fast-food and quick service restaurant industry, as the FTC’s decision will not only determine the fate of this acquisition but could also set precedents for future deals within the industry.&nbsp;&nbsp;

Subway Acquisition Reportedly Under Investigation by the FTC 

1851 Franchise

Massachusetts Senator Elizabeth Warren believes the acquisition would create an unfair sandwich monopoly and result in higher prices for consumers. 

subway-acquisition-reportedly-under-investigation-by-the-ftc

SweatHouz

SweatHouz SWTHZ Franchise - Hunter and Mallory Mitchem - Franchisee Feature - 1851 Franchise

From Aerospace to Wellness: Hunter Mitchem’s Journey to a SweatHouz Empire

sweathouz-franchise-hunter-mitchem-6g

Onigilly Japanese Kitchen

Onigilly - Low Operating Costs Drive High Returns for Franchisees - 1851 Franchise

Maximize Your ROI: How Onigilly’s Low Operating Costs Drive High Returns for Franchisees

onigilly-franchise-fast-casual-franchise-opportunity

Layne's Chicken Fingers

What Is the Layne’s Franchise Disclosure Document, and What Will I Find in It?

laynes-franchise-disclosure-document

Athletech News: How SWTHZ Delivers on Wellness Demands of All Kinds

swthz-delivers-wellness-demands-contrast-therapy

TruBlue Home Service Ally

Why Protected Territories Matter and How the TruBlue Franchise Delivers

why-protected-territories-matter-and-how-the-trublue-franchise-delivers

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

What ALEC-Laffer's Report Means for Franchising

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

Bed Bath & Beyond - Franchise Expansion - Retail Strategy - 1851 Franchise

Bed Bath & Beyond Launches Franchise Model as Part of Comeback Strategy

bed-bath-beyond-franchise-expansion-retail-strategy

Senior Entrepreneurship - Franchising - 1851 Franchise

Senior Entrepreneurship Is Rising — And Franchising Is a Key Outlet

senior-entrepreneurship-franchising-silver-startups

U.S. Government Shutdown - Impact on Franchises - 1851 Franchise

Government Shutdown Stalls SBA Loans: How the Shutdown Could Impact Franchises

government-shutdown-impacts-sba-loans-tourism-franchises

Subway Franchisees Resist Expensive Remodel Directives

subway-franchisees-resist-expensive-remodel-directives

The American Franchise Act: What It Means for Franchisors and Franchisees - 1851 Franchise

The American Franchise Act: What It Means for Franchisors and Franchisees

american-franchise-act-joint-employer-standard

Power Eats: Smoothie King Rolls Out Food Nationwide To Fuel Franchise Growth

smoothie-king-food-menu-power-eats

NJCAR v. Ford - New Jersey Supreme Court Limits Standing Under Franchise Practices Act

New Jersey Supreme Court Limits Standing Under Franchise Practices Act

new-jersey-franchise-practices-act-njcar-v-ford

Friendly’s Parent Company Acquired by Multi-Unit Franchisee as More Owners Take the Lead in Brand Acquisitions 

friendlys-parent-company-acquired-by-multi-unit-franchisee-as-more-owners-take-the-lead-in-brand-acquisitions

Top Education Franchises To Consider for 2025 - 1851 Franchise

Top Education Franchises To Consider Investing In for 2025

top-education-franchises-investment-opportunities

Top Early Childhood Education and Child Care Franchises for 2025 - 1851 Franchise

Top Early Childhood Education and Child Care Franchises for 2025

early-childhood-education-child-care-franchises

Top Arts and Creative Learning Franchises for 2025 - 1851 Franchise

Top Arts and Creative Learning Franchises for 2025

top-arts-creative-learning-franchises

1851 Franchisee Spotlight graphic with photo of Barb Volk and KidStrong logo

Why This Orangetheory Fitness Franchise Owner Is Developing KidStrong Franchises

kidstrong-franchise-owner-barb-volk-2025

image of franchise deep dive from 1851 franchise on doody calls franchise authority brands

DoodyCalls Franchise Costs, Fees, Profit and Data for 2025

doodycalls-franchise-deep-dive

Subway Acquisition Reportedly Under Investigation by the FTC

MORE STORIES LIKE THIS