Subway vs Jersey Mike'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
S

Subway

Food & Restaurant
$229K – $524K
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VS
JM

Jersey Mike's

Food & Restaurant
$217K – $749K
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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 ($225K less) vs Jersey Mike's.
Fee Burden
Jersey Mike's wins on royalty rate (1.5% lower) vs Subway.
Unit Count
Subway wins on total units (33,990 more) vs Jersey Mike's.
Satisfaction
Jersey Mike's wins on franchisee satisfaction vs Subway.

Detailed Analysis: Subway vs Jersey Mike's

Choosing between Subway and Jersey Mike's comes down to your investment capacity, risk tolerance, and operational preferences. Both operate in the Food & Restaurant sector, which means they compete for similar customers and territory. Subway has a larger footprint, which typically translates to stronger brand recognition but potentially more territorial saturation.

From a capital perspective, Jersey Mike's 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. Jersey Mike's charges a lower royalty rate, which means more of your gross revenue stays in your pocket.

Franchisee satisfaction is one of the strongest predictors of long-term success. Jersey Mike's leads with a 82/100 satisfaction score, indicating that existing owners are more positive about their decision. 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 Jersey Mike's
Min Investment $229K $217K
Max Investment $524K $749K
Franchise Fee $15K $19K
Royalty Rate 8.0% 6.5%
Ad Fund Rate 4.5% 4.0%

Unit Economics

Metric Subway Jersey Mike's
Avg Unit Revenue $420K $1.2M
Avg Profit Margin N/A N/A

Scale & Growth

Metric Subway Jersey Mike's
Total Units 36,690 2,700
Annual Growth -3.5% 11.0%
Failure Rate 8.0% 2.5%

Franchisee Performance

Metric Subway Jersey Mike's
Franchisee Satisfaction 55/100 82/100

Track Record

Metric Subway Jersey Mike's
Years in Business 59 68
Years Franchising 48 37

Financial Requirements

Metric Subway Jersey Mike's
Min Net Worth Required $100K $300K
Liquid Capital Required $50K $100K

Operations

Metric Subway Jersey Mike's
Avg Employees 12 20
Training Weeks 2 4

Frequently Asked Questions

Is Subway or Jersey Mike's 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. Jersey Mike's has 2,700 total units and a 82/100 franchisee satisfaction score. 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 Jersey Mike's franchise?

Based on data in our database, opening a Jersey Mike's franchise requires an initial investment of $217K – $749K. The franchise fee is $19K, with ongoing royalties of 6.5%. Always request the current FDD for exact figures.

What is the royalty rate for Subway vs Jersey Mike's?

Subway's royalty rate is 8.0%. Jersey Mike's's royalty rate is 6.5%. That means Jersey Mike's has the lower ongoing royalty burden.

Which has more locations — Subway or Jersey Mike's?

Subway has 36,690 total units. Jersey Mike's has 2,700 total units. A larger system can mean more brand recognition, but also more territorial competition.

Is Subway or Jersey Mike's semi-absentee friendly?

Subway is typically run as a owner-operator model. Jersey Mike'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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