A large Subway operator declares bankruptcy

Group 1 - MTF Enterprises, a Subway franchisee operating 43 stores, filed for Chapter 11 bankruptcy protection due to financial difficulties linked to Merchant Cash Advance loans [8] - The Subway franchise system has seen a decline in store count, dropping from 21,147 stores at the beginning of 2022 to 19,502 by the end of 2024, indicating potential issues with unit economics [4] - Franchisees have expressed concerns over the financial burden imposed by the cost of remodels, which has contributed to the financial strain on operators [5] Group 2 - MTF's bankruptcy is part of a broader trend, as other franchisees, such as Matadoor Restaurants, have also filed for bankruptcy after facing challenges related to Merchant Cash Advance loans [5] - The restaurant industry has experienced increased pressure from creditors, with companies like Fat Brands and TGI Friday's facing significant financial challenges and bankruptcy filings due to escalating repayment demands [6]