Subway vs The UPS Store: 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 Retail & Services Real Data Not Investment Advice
S

Subway

Food & Restaurant
$229K – $524K
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VS
TU

The UPS Store

Retail & Services
$178K – $403K
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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
The UPS Store wins on investment range ($122K less) vs Subway.
Fee Burden
The UPS Store wins on royalty rate (3.0% lower) vs Subway.
Unit Count
Subway wins on total units (31,090 more) vs The UPS Store.
Satisfaction
The UPS Store wins on franchisee satisfaction vs Subway.

Investment & Fees

Metric Subway The UPS Store
Min Investment $229K $178K
Max Investment $524K $403K
Franchise Fee $15K $30K
Royalty Rate 8.0% 5.0%
Ad Fund Rate 4.5% 2.5%

Unit Economics

Metric Subway The UPS Store
Avg Unit Revenue $420K $550K
Avg Profit Margin N/A N/A

Scale & Growth

Metric Subway The UPS Store
Total Units 36,690 5,600
Annual Growth -3.5% 0.5%
Failure Rate 8.0% 2.0%

Franchisee Performance

Metric Subway The UPS Store
Franchisee Satisfaction 55/100 70/100

Track Record

Metric Subway The UPS Store
Years in Business 59 44
Years Franchising 48 44

Financial Requirements

Metric Subway The UPS Store
Min Net Worth Required $100K $150K
Liquid Capital Required $50K $75K

Operations

Metric Subway The UPS Store
Avg Employees 12 4
Training Weeks 2 2

Frequently Asked Questions

Is Subway or The UPS Store 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. The UPS Store has 5,600 total units and a 70/100 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 The UPS Store franchise?

Based on data in our database, opening a The UPS Store franchise requires an initial investment of $178K – $403K. The franchise fee is $30K, with ongoing royalties of 5.0%. Always request the current FDD for exact figures.

What is the royalty rate for Subway vs The UPS Store?

Subway's royalty rate is 8.0%. The UPS Store's royalty rate is 5.0%. That means The UPS Store has the lower ongoing royalty burden.

Which has more locations — Subway or The UPS Store?

Subway has 36,690 total units. The UPS Store has 5,600 total units. A larger system can mean more brand recognition, but also more territorial competition.

Is Subway or The UPS Store semi-absentee friendly?

Subway is typically run as a owner-operator model. The UPS Store 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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