Five Guys vs Subway: 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
FG

Five Guys

Food & Restaurant
$306K – $641K
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VS
S

Subway

Food & Restaurant
$229K – $524K
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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
Subway wins on investment range ($117K less) vs Five Guys.
Fee Burden
Five Guys wins on royalty rate (2.0% lower) vs Subway.
Unit Count
Subway wins on total units (34,940 more) vs Five Guys.
Satisfaction
Five Guys wins on franchisee satisfaction vs Subway.

Investment & Fees

Metric Five Guys Subway
Min Investment $306K $229K
Max Investment $641K $524K
Franchise Fee $25K $15K
Royalty Rate 6.0% 8.0%
Ad Fund Rate 3.0% 4.5%

Unit Economics

Metric Five Guys Subway
Avg Unit Revenue $1.5M $420K
Avg Profit Margin N/A N/A

Scale & Growth

Metric Five Guys Subway
Total Units 1,750 36,690
Annual Growth 3.5% -3.5%
Failure Rate 2.0% 8.0%

Franchisee Performance

Metric Five Guys Subway
Franchisee Satisfaction 77/100 55/100

Track Record

Metric Five Guys Subway
Years in Business 38 59
Years Franchising 22 48

Financial Requirements

Metric Five Guys Subway
Min Net Worth Required $1.5M $100K
Liquid Capital Required $300K $50K

Operations

Metric Five Guys Subway
Avg Employees 30 12
Training Weeks 4 2

Frequently Asked Questions

Is Five Guys or Subway a better franchise investment?

The answer depends on your goals, budget, and market. Five Guys has 1,750 total units and a 77/100 franchisee satisfaction score. Subway has 36,690 total units and a 55/100 franchisee satisfaction score. Use our ROI Calculator to model both scenarios.

How much does it cost to open a Five Guys franchise?

Based on data in our database, opening a Five Guys franchise requires an initial investment of $306K – $641K. The franchise fee is $25K, with ongoing royalties of 6.0%. Always request the current FDD for exact figures.

How much does it cost to open a Subway franchise?

Based on data in our database, opening a Subway franchise requires an initial investment of $229K – $524K. The franchise fee is $15K, with ongoing royalties of 8.0%. Always request the current FDD for exact figures.

What is the royalty rate for Five Guys vs Subway?

Five Guys's royalty rate is 6.0%. Subway's royalty rate is 8.0%. That means Five Guys has the lower ongoing royalty burden.

Which has more locations — Five Guys or Subway?

Five Guys has 1,750 total units. Subway has 36,690 total units. A larger system can mean more brand recognition, but also more territorial competition.

Is Five Guys or Subway semi-absentee friendly?

Five Guys is typically run as a owner-operator model. Subway 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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