Firehouse Subs vs McDonald's: Which Is the Better Investment?

Side-by-side comparison of investment costs, fees, unit economics, and franchisee satisfaction. Data from FDD disclosures and franchise database — updated 2026.

Food & Restaurant Real Data Not Investment Advice
FS

Firehouse Subs

Food & Restaurant
$200K – $678K
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VS
M

McDonald's

Food & Restaurant
$1.3M – $2.3M
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At a Glance: Key Differences

Data-driven observations based on disclosed figures. Not investment advice — verify current numbers in each franchise's FDD.

Investment Cost
Firehouse Subs wins on investment range ($1.6M less) vs McDonald's.
Fee Burden
McDonald's wins on royalty rate (2.0% lower) vs Firehouse Subs.
Unit Count
McDonald's wins on total units (38,781 more) vs Firehouse Subs.
Satisfaction
Firehouse Subs wins on franchisee satisfaction vs McDonald's.

Investment & Fees

Metric Firehouse Subs McDonald's
Min Investment $200K $1.3M
Max Investment $678K $2.3M
Franchise Fee $20K $45K
Royalty Rate 6.0% 4.0%
Ad Fund Rate 3.0% 4.0%

Unit Economics

Metric Firehouse Subs McDonald's
Avg Unit Revenue $850K $3.7M
Avg Profit Margin N/A N/A

Scale & Growth

Metric Firehouse Subs McDonald's
Total Units 1,250 40,031
Annual Growth 4.0% 3.0%
Failure Rate 3.0% 1.5%

Franchisee Performance

Metric Firehouse Subs McDonald's
Franchisee Satisfaction 75/100 72/100

Track Record

Metric Firehouse Subs McDonald's
Years in Business 30 69
Years Franchising 24 69

Financial Requirements

Metric Firehouse Subs McDonald's
Min Net Worth Required $300K $500K
Liquid Capital Required $100K $500K

Operations

Metric Firehouse Subs McDonald's
Avg Employees 18 50
Training Weeks 4 9

Frequently Asked Questions

Is Firehouse Subs or McDonald's a better franchise investment?

The answer depends on your goals, budget, and market. Firehouse Subs has 1,250 total units and a 75/100 franchisee satisfaction score. McDonald's has 40,031 total units and a 72/100 franchisee satisfaction score. Use our ROI Calculator to model both scenarios.

How much does it cost to open a Firehouse Subs franchise?

Based on data in our database, opening a Firehouse Subs franchise requires an initial investment of $200K – $678K. The franchise fee is $20K, with ongoing royalties of 6.0%. Always request the current FDD for exact figures.

How much does it cost to open a McDonald's franchise?

Based on data in our database, opening a McDonald's franchise requires an initial investment of $1.3M – $2.3M. The franchise fee is $45K, with ongoing royalties of 4.0%. Always request the current FDD for exact figures.

What is the royalty rate for Firehouse Subs vs McDonald's?

Firehouse Subs's royalty rate is 6.0%. McDonald's's royalty rate is 4.0%. That means McDonald's has the lower ongoing royalty burden.

Which has more locations — Firehouse Subs or McDonald's?

Firehouse Subs has 1,250 total units. McDonald's has 40,031 total units. A larger system can mean more brand recognition, but also more territorial competition.

Is Firehouse Subs or McDonald's semi-absentee friendly?

Firehouse Subs is typically run as a owner-operator model. McDonald's is typically run as a owner-operator model. If passive income is your goal, semi-absentee models let you hire a manager to run day-to-day operations.

Data sourced from franchise disclosure documents and public records. Investment ranges, royalty rates, and unit counts change — always request current FDD before making investment decisions. Last updated March 2026.

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