Subway's $9.6B Sale to Roark Capital Faces Antitrust Concerns Over Competing Sandwich Chains

Subway agreed to sell itself to Roark Capital for $9.6 billion, but the deal could face antitrust scrutiny as Roark owns other fast food chains like Dunkin' and Jimmy John's.

Subway's franchise agreement defines competitive fast food chains as those within 3 miles that get over 20% of revenue from sandwiches. This definition includes some of Roark's chains.

Former FTC commissioners say Subway restricting franchisees from opening competing chains but then selling to their owner is hypocritical and concerning.

Roark agreed to a $360 million breakup fee if the deal isn't completed in 12 months, suggesting Subway sees regulatory risks.

Subway was offered a lower bid from firms without competing chains, indicating less regulatory concerns with that deal.