FranchiseBudget

Subway vs Taco Bell Franchise Cost 2026

Subway runs $229K–$522K. Taco Bell runs $575K–$3.4M. The gap at midpoint: $1.6M.

Subway

$229K–$522K

total investment

Investment Difference

$1.6M

Subway costs less

Taco Bell

$575K–$3.4M

total investment

Cost Breakdown

Category Subway Taco Bell Lower Cost
Total Investment $229K–$522K $575K–$3.4M Subway
Franchise Fee $15,000 $45,000 Subway
Royalty Rate 8.0% 5.5% Taco Bell
Ad Fund Fee 4.5% 4.25% Taco Bell
Net Worth Required $100K $1.5M Subway
Liquid Capital $100K $750K Subway
Est. Break-Even N/A 46.1 yr

Subway Profile

Category
food
Total Investment
$229K–$522K
Franchise Fee
$15,000
Royalty
8.0%
Est. Annual Revenue
$430K
Full Subway Cost Breakdown →

Taco Bell Profile

Category
food
Total Investment
$575K–$3.4M
Franchise Fee
$45,000
Royalty
5.5%
Est. Annual Revenue
$1.9M
Full Taco Bell Cost Breakdown →

Bottom Line

Subway costs $1.6M less to open at the midpoint. That difference goes toward working capital or a second location. Taco Bell also wins on royalty rate.