Subway vs Papa John'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
PJ

Papa John's

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

Unit Economics

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

Scale & Growth

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

Franchisee Performance

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

Track Record

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

Financial Requirements

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

Operations

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

Frequently Asked Questions

Is Subway or Papa John'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. Papa John's has 5,700 total units and a 62/100 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 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.

What is the royalty rate for Subway vs Papa John's?

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

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

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

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

Subway is typically run as a owner-operator model. Papa John's is typically run as a semi-absentee 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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