Quote:
Originally Posted by Mutt
a Subway franchise costs about $100K
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Subway is the cheapest fast food Franchise to get into in North America. Your franchise fees are 1/3 that of McDonalds, as are the royalties paid. Another thing that leads to a lot of Subways are the population requirements. McDonalds won't even consider you if you're applying for a franchise in a town with a population of less than 10,000. Subway doesn't give a shit how backwoods you are as long as you turn up the cash. I know the guy who owns the local Subway franchise pretty well, we talk about it once in a while when I pop in to grab a coffee...
McDonald's
Total Investment: $118,375-$1,900,000
Initial Franchise Fee: $45,000
Royalty Fee: 12.5%+
Advertising Fee: N/A
Term of Agreement: 20 years
Renewal Fee: $45K
Subway
Total Investment: $78,600-$238,300
Initial Franchise Fee: $15,000
Royalty Fee: 8%
Advertising Fee: N/A
Term of Agreement: 20 years