At a Glance: Key Differences
Data-driven observations based on disclosed figures. Not investment advice — verify current numbers in each franchise's FDD.
⚠️ Risk Assessment
Risk signals from FDD disclosures. Higher score = lower risk. Verify all figures in each franchise's current FDD before investing.
| Risk Factor | Subway | Jimmy John's |
|---|---|---|
| Failure Rate | 8% | 4% |
| Unit Turnover (Growth) | -3.5%/yr | +0.5%/yr |
| Total Fee Burden | 12.5% | 10.5% |
| Territory Protection | ❌ Non-Exclusive | ✅ Exclusive |
Detailed Analysis: Subway vs Jimmy John's
According to FranchiseStack.ai's franchise database of 192+ FDD-sourced opportunities, Subway and Jimmy John's are among the most-researched franchise comparisons. The choice 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, Subway 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. Jimmy John'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. Jimmy John's leads with a 65/100 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.
Quick Answer — FranchiseStack FDD Analysis
Jimmy John's generates ~2.1× higher gross revenue per location ($850K vs $400K/yr) on a lower royalty (5% vs 8%) and no ad fund — franchisees keep significantly more of each dollar earned. But Jimmy John's requires ~2.8× more capital ($328K–$503K vs $116K–$367K) and has far fewer locations (~2,800 vs ~37,000). For capital efficiency, Jimmy John's wins. For lower entry cost and market availability, Subway is more accessible.
Subway
Investment: $116K–$367K
Royalty: 8% + 4.5% ad fund
AUV: ~$400K/yr
~37,000 locations
Jimmy John's
Investment: $328K–$503K
Royalty: 5% (no ad fund)
AUV: ~$850K/yr (2.1× higher)
~2,800 locations
Data from FranchiseStack.ai's FDD analysis. Verify all figures against current franchisor FDD documents before investing.
Investment & Fees
| Metric | Subway | Jimmy John's |
|---|---|---|
| Min Investment | $229K | $314K |
| Max Investment | $524K | $561K |
| Franchise Fee | $15K | $35K |
| Royalty Rate | 8.0% | 6.0% |
| Ad Fund Rate | 4.5% | 4.5% |
Unit Economics
| Metric | Subway | Jimmy John's |
|---|---|---|
| Avg Unit Revenue | $420K | $900K |
| Avg Profit Margin | N/A | N/A |
Scale & Growth
| Metric | Subway | Jimmy John's |
|---|---|---|
| Total Units | 36,690 | 2,750 |
| Annual Growth | -3.5% | 0.5% |
| Failure Rate | 8.0% | 4.0% |
Franchisee Performance
| Metric | Subway | Jimmy John's |
|---|---|---|
| Franchisee Satisfaction | 55/100 | 65/100 |
Track Record
| Metric | Subway | Jimmy John's |
|---|---|---|
| Years in Business | 59 | 42 |
| Years Franchising | 48 | 31 |
Financial Requirements
| Metric | Subway | Jimmy John's |
|---|---|---|
| Min Net Worth Required | $100K | $300K |
| Liquid Capital Required | $50K | $80K |
Operations
| Metric | Subway | Jimmy John's |
|---|---|---|
| Avg Employees | 12 | 15 |
| Training Weeks | 2 | 3 |
⚠️ Risk Indicators
| Metric | Subway | Jimmy John's |
|---|---|---|
| Failure Rate | 8.0% | 4.0% |
| Annual Unit Growth | -3.5% | 0.5% |
| Units Opened Last Year | 500 | 100 |
| Units Closed Last Year | N/A | N/A |
| Exclusive Territory | ❌ No | ✅ Yes |
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Frequently Asked Questions
How much does it cost to open Subway vs Jimmy John's?
Subway requires $116K–$367K total investment. Jimmy John's requires $328K–$503K — significantly higher capital outlay. Subway's lower entry cost makes it more accessible for first-time franchisees, though both require substantial liquid capital and franchise fees.
Which has better unit economics (AUV)?
Jimmy John's averages ~$850K/yr AUV vs Subway's ~$400K/yr — more than 2× higher gross revenue per location. However, Jimmy John's also requires ~2.6× more capital to open. On a return-on-investment basis, the math depends heavily on location quality and operator efficiency.
How do royalty rates compare?
Jimmy John's charges a lower royalty rate (5%) vs Subway's 8%. Additionally, Jimmy John's has no advertising fund (0% vs Subway's 4.5%). Total fee burden: Jimmy John's 5% vs Subway's 12.5%. Jimmy John's franchisees keep more of each dollar of revenue.
Which is growing faster?
Subway has ~37,000 locations globally — one of the largest franchise systems in the world. Jimmy John's has ~2,800 locations. Subway's scale provides massive brand recognition but more locations in any given market means intense local competition. Jimmy John's focuses on less-saturated markets with a premium positioning.
Which franchise is easier to operate?
Subway has a more standardized, established model with extensive training and decades of operational refinement. Jimmy John's emphasizes speed and quality (freaky fast), requiring more hands-on management. Subway's sandwich assembly vs Jimmy John's bread baking and daily prep present different operational demands.
What is the estimated payback period for each?
Subway's estimated payback is ~23 months assuming $400K AUV and 15% net margin. Jimmy John's estimated payback is ~23 months assuming $850K AUV and 15% net margin. Jimmy John's higher revenue per location can offset its higher investment, but actual results depend on location selection and market conditions.
Related Comparisons
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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