Papa John's 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
PJ

Papa John's

Food & Restaurant
$189K – $774K
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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 ($249K less) vs Papa John's.
Fee Burden
Papa John's wins on royalty rate (3.0% lower) vs Subway.
Unit Count
Subway wins on total units (30,990 more) vs Papa John's.
Satisfaction
Papa John's wins on franchisee satisfaction vs Subway.

Investment & Fees

Metric Papa John's Subway
Min Investment $189K $229K
Max Investment $774K $524K
Franchise Fee $25K $15K
Royalty Rate 5.0% 8.0%
Ad Fund Rate 8.0% 4.5%

Unit Economics

Metric Papa John's Subway
Avg Unit Revenue $960K $420K
Avg Profit Margin N/A N/A

Scale & Growth

Metric Papa John's Subway
Total Units 5,700 36,690
Annual Growth 1.0% -3.5%
Failure Rate 4.0% 8.0%

Franchisee Performance

Metric Papa John's Subway
Franchisee Satisfaction 62/100 55/100

Track Record

Metric Papa John's Subway
Years in Business 40 59
Years Franchising 38 48

Financial Requirements

Metric Papa John's Subway
Min Net Worth Required $750K $100K
Liquid Capital Required $250K $50K

Operations

Metric Papa John's Subway
Avg Employees 20 12
Training Weeks 4 2

Frequently Asked Questions

Is Papa John's or Subway a better franchise investment?

The answer depends on your goals, budget, and market. Papa John's has 5,700 total units and a 62/100 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 Papa John's franchise?

Based on data in our database, opening a Papa John's franchise requires an initial investment of $189K – $774K. The franchise fee is $25K, with ongoing royalties of 5.0%. 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 Papa John's vs Subway?

Papa John's's royalty rate is 5.0%. Subway's royalty rate is 8.0%. That means Papa John's has the lower ongoing royalty burden.

Which has more locations — Papa John's or Subway?

Papa John's has 5,700 total units. Subway has 36,690 total units. A larger system can mean more brand recognition, but also more territorial competition.

Is Papa John's or Subway semi-absentee friendly?

Papa John's is typically run as a semi-absentee 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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