McDonald's vs Subway Franchise Cost 2026
McDonald's runs $1.3M–$2.3M. Subway runs $229K–$522K. The gap at midpoint: $1.4M.
McDonald's
$1.3M–$2.3M
total investment
Investment Difference
$1.4M
Subway costs less
Subway
$229K–$522K
total investment
Cost Breakdown
| Category | McDonald's | Subway | Lower Cost |
|---|---|---|---|
| Total Investment | $1.3M–$2.3M | $229K–$522K | Subway |
| Franchise Fee | $45,000 | $15,000 | Subway |
| Royalty Rate | 4.0% | 8.0% | McDonald's |
| Ad Fund Fee | 4.0% | 4.5% | McDonald's |
| Net Worth Required | $500K | $100K | Subway |
| Liquid Capital | $500K | $100K | Subway |
| Est. Break-Even | 14.1 yr | N/A | — |
McDonald's Profile
- Category
- food
- Total Investment
- $1.3M–$2.3M
- Franchise Fee
- $45,000
- Royalty
- 4.0%
- Est. Annual Revenue
- $3.2M
Subway Profile
- Category
- food
- Total Investment
- $229K–$522K
- Franchise Fee
- $15,000
- Royalty
- 8.0%
- Est. Annual Revenue
- $430K
Bottom Line
Subway costs $1.4M less to open at the midpoint. That difference goes toward working capital or a second location. McDonald's also wins on royalty rate.