Subway vs Gregorys Coffee: 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 Food & Beverage Real Data Not Investment Advice
S

Subway

Food & Restaurant
$229K – $524K
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VS
GC

Gregorys Coffee

Food & Beverage
$200K – $700K
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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 ($176K less) vs Gregorys Coffee.
Fee Burden
Gregorys Coffee wins on royalty rate (2.0% lower) vs Subway.
Unit Count
Subway wins on total units (36,637 more) vs Gregorys Coffee.
Satisfaction
Subway has available Franchisee Satisfaction data; Gregorys Coffee does not.

Detailed Analysis: Subway vs Gregorys Coffee

Choosing between Subway and Gregorys Coffee comes down to your investment capacity, risk tolerance, and operational preferences. Subway operates in Food & Restaurant while Gregorys Coffee is in Food & Beverage. Cross-industry comparisons are valuable when you're evaluating which business model best fits your skills and lifestyle.

From a capital perspective, Gregorys Coffee has a lower entry point. However, initial investment alone doesn't determine ROI — ongoing royalties, revenue potential, and failure rates all factor into long-term returns. Gregorys Coffee charges a lower royalty rate, which means more of your gross revenue stays in your pocket.

Before committing to either franchise, we recommend running both through our Financial Model tool to project personalized 5-year P&L scenarios. You should also review each franchise's complete Franchise Disclosure Document using our FDD Checker to understand litigation history, termination rates, and territory restrictions.

Investment & Fees

Metric Subway Gregorys Coffee
Min Investment $229K $200K
Max Investment $524K $700K
Franchise Fee $15K N/A
Royalty Rate 8.0% 6.0%
Ad Fund Rate 4.5% N/A

Unit Economics

Metric Subway Gregorys Coffee
Avg Unit Revenue $420K N/A
Avg Profit Margin N/A N/A

Scale & Growth

Metric Subway Gregorys Coffee
Total Units 36,690 53
Annual Growth -3.5% N/A
Failure Rate 8.0% N/A

Franchisee Performance

Metric Subway Gregorys Coffee
Franchisee Satisfaction 55/100 N/A

Track Record

Metric Subway Gregorys Coffee
Years in Business 59 N/A
Years Franchising 48 N/A

Financial Requirements

Metric Subway Gregorys Coffee
Min Net Worth Required $100K N/A
Liquid Capital Required $50K N/A

Operations

Metric Subway Gregorys Coffee
Avg Employees 12 N/A
Training Weeks 2 N/A

Frequently Asked Questions

Is Subway or Gregorys Coffee a better franchise investment?

The answer depends on your goals, budget, and market. Subway has 36,690 total units and a 55/100 franchisee satisfaction score. Gregorys Coffee has 53 total units and a track record in its industry. Use our ROI Calculator to model both scenarios.

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.

How much does it cost to open a Gregorys Coffee franchise?

Based on data in our database, opening a Gregorys Coffee franchise requires an initial investment of $200K – $700K. The franchise fee is disclosed in the FDD, with ongoing royalties of 6.0%. Always request the current FDD for exact figures.

What is the royalty rate for Subway vs Gregorys Coffee?

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

Which has more locations — Subway or Gregorys Coffee?

Subway has 36,690 total units. Gregorys Coffee has 53 total units. A larger system can mean more brand recognition, but also more territorial competition.

Is Subway or Gregorys Coffee semi-absentee friendly?

Subway is typically run as a owner-operator model. Gregorys Coffee 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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