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Millions in Debt: Another Subway Franchisee Files Bankruptcy
23 Jul
Summary
- A Subway franchisee in North Dakota filed for bankruptcy protection.
- The operator cited declining revenue and rising costs as pressures.
- This follows similar financial distress for other Subway franchisees.
Cherry Butte Company, a franchisee operating three Subway sandwich shops in North Dakota, filed for Chapter 11 bankruptcy protection on July 21, 2026. The company reported substantial debts exceeding $1.8 million against minimal assets of over $19,000. This action underscores the persistent economic challenges impacting the restaurant industry.
The franchisee's financial distress appears linked to declining revenues and escalating operational costs, including food and labor. Annual gross revenue saw a decrease from $2.67 million in 2024 to $2.34 million in 2025. This situation mirrors that of other Subway franchisees, such as MTF Enterprises LLC, which also sought bankruptcy protection earlier this year due to loan defaults and alleged interference with sales revenue collection.
