Burger King vs SubwayFranchise Comparison 2026
Burger King and Subway represent two different approaches in the QSR space. Here's how they compare on investment costs, fees, revenue potential, and market presence.
Quick Comparison
Side-by-Side Comparison
| Metric | Burger King | Subway | Difference |
|---|---|---|---|
| Franchise Fee | $50,000 | $15,000 | +233% |
| Total Investment (Low) | $316,000 | $116,000 | +172% |
| Total Investment (High) | $3.3M | $263,000 | +1155% |
| Cash Required | $500,000 | $80,000 | +525% |
| Royalty Rate | 4.5% | 8.0% | Lower |
| Advertising Fee | 4.0% | 4.5% | Lower |
| Estimated Revenue | $1.4M | $490,000 | +186% |
| Number of Locations | 7,000 | 20,133 | Fewer |
| Year Founded | 1954 | 1965 | Older |
| Training Duration | 8 weeks | 2 weeks | Longer |
Note: Data sourced from public FDD filings and industry reports. Actual costs vary by location, real estate, and format. Always review current FDD Item 7 and Item 19 disclosures before making investment decisions.
Detailed Analysis
About Burger King
Flame-grilled burger concept with strong international presence. Owned by Restaurant Brands International.
About Subway
Lower-cost franchise option with flexible footprint. Lower per-unit sales but easier entry point for new franchisees.
Investment Comparison
Subway requires a lower initial investment (avg $189,500) compared to Burger King(avg $1.8M), making it more accessible for first-time franchisees. However, Burger King may offer higher revenue potential.
Fee Structure
Burger King has lower ongoing fees (8.5% total) compared to Subway(12.5% total), which means more of each sales dollar stays with the franchisee. Over time, this can significantly impact profitability.
Market Position
Subway has a significantly larger footprint with 20,133 locations compared to Burger King's 7,000. This larger network typically means better brand recognition, more purchasing power, and stronger operational support.
Frequently Asked Questions
How much does it cost to open a Burger King vs Subway franchise?
Burger King requires an initial investment of $316,000 to $3.3M, while Subway requires $116,000 to $263,000. Subway has the lower average investment at $189,500.
What are the ongoing fees for Burger King vs Subway?
Burger King charges a 4.5% royalty plus 4.0% advertising fee (8.5% total). Subway charges 8.0% royalty plus 4.5% advertising fee (12.5% total). Burger King has lower total ongoing fees.
Which franchise makes more money: Burger King or Subway?
Based on estimated average unit revenue, Burger King generates $1.4M per location compared to $490,000 for Subway. However, profitability depends on many factors including local market, operating costs, and management.
How many locations does Burger King have vs Subway?
Burger King has 7,000 locations, while Subway has 20,133 locations. Subway has the larger footprint, which typically means stronger brand recognition and supply chain advantages.
Is Burger King or Subway a better franchise investment in 2026?
Both Burger King and Subway are established QSR brands with proven models. Subway offers a lower entry point, while Burger King shows higher average revenue. The best choice depends on your available capital, local market conditions, and personal goals. Always review the current FDD before making investment decisions.
Stay Updated on Franchise Comparisons
Get detailed franchise cost analysis and investment insights delivered weekly.
QSR Intelligence Briefing
Daily insights on the QSR industry. No spam, just intelligence.