McDonald's vs Subway: Franchise Comparison
Side-by-side analysis using official FDD data
| Metric | McDonald's | Subway |
|---|---|---|
| Initial Investment Range | $1,470,500 – $2,642,000 | $263,000 – $630,000 |
| Franchise Fee | $45,000 | $15,000 |
| Royalty Rate | 5.0% | 8.0% |
| Ad Fund Rate | 4.0% | 4.5% |
| Total Fee Burden | 9.0% | 12.5% |
| Median Revenue | $2,900,000 | No Item 19 |
| Est. Annual Profit | $727,900 | N/A |
| Est. Profit Margin | 25.1% | N/A |
| Closure Rate | 0.8% | 0.0% |
| Total Units | 12,772 | 19,502 |
| Unit Growth | N/A | 0.0% |
| Franchise Score | 81.0/100 | 61.0/100 |
Which Is the Better Franchise?
Based on the metrics above, McDonald's leads on 4 metrics, while Subway leads on 4 metrics.
These two franchises are closely matched, with neither brand holding a clear advantage across the board.
The Franchise Breakdown Score — a composite rating factoring in costs, revenue, stability, and risk — gives McDonald's a 81.0/100 and Subway a 61.0/100.
This comparison is generated from publicly available FDD data and is provided for informational purposes only. It does not constitute investment advice. Always conduct your own due diligence before making any franchise investment decision.