> Subway, which owns none of its restaurants and makes its money through 8% royalty fees it collects from franchisees, now faces interest payments on debt follo

> Subway, which owns none of its restaurants and makes its money through 8% royalty fees it collects from franchisees, now faces interest payments on debt following its sale to Roark and can’t afford to have declining earnings, sources said. The classic private equity playbook is about to kill Subway. (Not that it was doing great before, but take a distressed company and saddle it with a ton of debt payments on top of its existing problems just... never seemed like a winning strategy to me.