Little Caesars 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
LC

Little Caesars

Food & Restaurant
$348K – $2.0M
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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 ($1.5M less) vs Little Caesars.
Fee Burden
Little Caesars wins on royalty rate (2.0% lower) vs Subway.
Unit Count
Subway wins on total units (32,690 more) vs Little Caesars.
Satisfaction
Little Caesars wins on franchisee satisfaction vs Subway.

Investment & Fees

Metric Little Caesars Subway
Min Investment $348K $229K
Max Investment $2.0M $524K
Franchise Fee $20K $15K
Royalty Rate 6.0% 8.0%
Ad Fund Rate 7.0% 4.5%

Unit Economics

Metric Little Caesars Subway
Avg Unit Revenue $900K $420K
Avg Profit Margin N/A N/A

Scale & Growth

Metric Little Caesars Subway
Total Units 4,000 36,690
Annual Growth 1.5% -3.5%
Failure Rate 5.0% 8.0%

Franchisee Performance

Metric Little Caesars Subway
Franchisee Satisfaction 60/100 55/100

Track Record

Metric Little Caesars Subway
Years in Business 65 59
Years Franchising 62 48

Financial Requirements

Metric Little Caesars Subway
Min Net Worth Required $350K $100K
Liquid Capital Required $150K $50K

Operations

Metric Little Caesars Subway
Avg Employees 15 12
Training Weeks 3 2

Frequently Asked Questions

Is Little Caesars or Subway a better franchise investment?

The answer depends on your goals, budget, and market. Little Caesars has 4,000 total units and a 60/100 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 Little Caesars franchise?

Based on data in our database, opening a Little Caesars franchise requires an initial investment of $348K – $2.0M. 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 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 Little Caesars vs Subway?

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

Which has more locations — Little Caesars or Subway?

Little Caesars has 4,000 total units. Subway has 36,690 total units. A larger system can mean more brand recognition, but also more territorial competition.

Is Little Caesars or Subway semi-absentee friendly?

Little Caesars 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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