McDonald’s vs Subway
Franchise Comparison 2026
Both McDonald’s and Subway are quick-service restaurants franchises. McDonald’s requires an investment of $1.5M – $2.8M while Subway requires $239K – $537K. McDonald’s discloses average revenue of $4.1M; Subway makes no financial performance representation in its Item 19, which is voluntary under the FTC Franchise Rule. Subway has SBA lending data on file with a 6.8% charge-off rate. FranchiseVerdict rates McDonald’s A (Strongest tier) and Subway A (Strongest tier).
| Metric | McDonald’s | Subway |
|---|---|---|
| Verdict Grade | AStrongest tier | AStrongest tier |
| Investment Range | $1.5M – $2.8M | $239K – $537K |
| Franchise Fee | $45K | $15K |
| Royalty Rate | 5.0% | 8.0% |
| Average Revenue (Item 19) | $4.1M | N/ANo Item 19 representation |
| SBA Charge-Off Rate | Limited data | 6.8% (6096 loans) |
| Total Units | 13,706 | 19,502 |
| Unit Growth (YoY) | +175 units | -631 units |
| Year Began Franchising | 1955 | 1974 |
| FDD Year | 2026 | 2025 |
Investment Range
$1.5M – $2.8M
$239K – $537K
Franchise Fee
$45K
$15K
Royalty Rate
5.0%
8.0%
Average Revenue (Item 19)
$4.1M
N/ANo Item 19 representation
SBA Charge-Off Rate
Limited data
6.8% (6096 loans)
Total Units
13,706
19,502
Unit Growth (YoY)
+175 units
-631 units
Year Began Franchising
1955
1974
FDD Year
2026
2025