Pennsylvania-based Subway franchiser files for bankruptcy

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MTF Enterprises, a Pennsylvania-based company that operates over 40 Subway locations across several states, has filed for bankruptcy in the Eastern District of Pennsylvania. According to court documents, the company's financial troubles stem from a couple of merchant cash advance loans that left it strapped for cash, with the company citing $500,000 to $1 million in assets and $1 million to $10 million in liabilities.

Why it matters

This bankruptcy filing highlights the financial challenges facing some Subway franchisers, with market saturation, the COVID-19 pandemic, and legal issues all contributing to the downfall of other Subway franchisers in recent years. The fate of MTF's 14 Subway locations in Pennsylvania, including one at the Harrisburg International Airport, remains uncertain.

The details

Court documents state that MTF Enterprises' financial problems were primarily caused by the weekly and daily draws from the merchant cash advance loans, with one lender, Ocean Funding, placing liens on the franchiser's revenue collection from payment processors like Square, Stripe, and American Express late last year. CEO Michael Fay cited the 'continued cash drawing' as the 'primary cause' of the company's financial troubles.

• MTF Enterprises filed for bankruptcy on January 21, 2026.
• Ocean Funding placed liens on MTF's revenue collection in late 2025.

What they’re saying

What’s next

The fate of MTF's 14 Subway locations in Pennsylvania, including one at the Harrisburg International Airport, remains uncertain as the bankruptcy proceedings continue.