At a Glance: Key Differences
Data-driven observations based on disclosed figures. Not investment advice — verify current numbers in each franchise's FDD.
Investment & Fees
| Metric | Subway | McDonald's |
|---|---|---|
| Min Investment | $229K | $1.3M |
| Max Investment | $524K | $2.3M |
| Franchise Fee | $15K | $45K |
| Royalty Rate | 8.0% | 4.0% |
| Ad Fund Rate | 4.5% | 4.0% |
Unit Economics
| Metric | Subway | McDonald's |
|---|---|---|
| Avg Unit Revenue | $420K | $3.7M |
| Avg Profit Margin | N/A | N/A |
Scale & Growth
| Metric | Subway | McDonald's |
|---|---|---|
| Total Units | 36,690 | 40,031 |
| Annual Growth | -3.5% | 3.0% |
| Failure Rate | 8.0% | 1.5% |
Franchisee Performance
| Metric | Subway | McDonald's |
|---|---|---|
| Franchisee Satisfaction | 55/100 | 72/100 |
Track Record
| Metric | Subway | McDonald's |
|---|---|---|
| Years in Business | 59 | 69 |
| Years Franchising | 48 | 69 |
Financial Requirements
| Metric | Subway | McDonald's |
|---|---|---|
| Min Net Worth Required | $100K | $500K |
| Liquid Capital Required | $50K | $500K |
Operations
| Metric | Subway | McDonald's |
|---|---|---|
| Avg Employees | 12 | 50 |
| Training Weeks | 2 | 9 |
Frequently Asked Questions
Is Subway or McDonald'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. McDonald's has 40,031 total units and a 72/100 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 McDonald's franchise?
Based on data in our database, opening a McDonald's franchise requires an initial investment of $1.3M – $2.3M. The franchise fee is $45K, with ongoing royalties of 4.0%. Always request the current FDD for exact figures.
What is the royalty rate for Subway vs McDonald's?
Subway's royalty rate is 8.0%. McDonald's's royalty rate is 4.0%. That means McDonald's has the lower ongoing royalty burden.
Which has more locations — Subway or McDonald's?
Subway has 36,690 total units. McDonald's has 40,031 total units. A larger system can mean more brand recognition, but also more territorial competition.
Is Subway or McDonald's semi-absentee friendly?
Subway is typically run as a owner-operator model. McDonald'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.
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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