Subway vs Carl's Jr.Franchise Comparison 2026
Subway and Carl's Jr. 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 | Subway | Carl's Jr. | Difference |
|---|---|---|---|
| Franchise Fee | $15,000 | $25,000 | -40% |
| Total Investment (Low) | $116,000 | $1.5M | -92% |
| Total Investment (High) | $263,000 | $3.2M | -92% |
| Cash Required | $80,000 | $380,000 | -79% |
| Royalty Rate | 8.0% | 4.0% | Higher |
| Advertising Fee | 4.5% | 6.0% | Lower |
| Estimated Revenue | $490,000 | $1.3M | -62% |
| Number of Locations | 20,133 | 1,350 | More |
| Year Founded | 1965 | 1941 | Newer |
| Training Duration | 2 weeks | 10 weeks | Shorter |
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 Subway
Lower-cost franchise option with flexible footprint. Lower per-unit sales but easier entry point for new franchisees.
About Carl's Jr.
West Coast premium burger chain known for charbroiled burgers and bold marketing. Part of CKE Restaurants alongside Hardee's.
Investment Comparison
Subway requires a lower initial investment (avg $189,500) compared to Carl's Jr.(avg $2.3M), making it more accessible for first-time franchisees. However, Carl's Jr. may offer higher revenue potential.
Fee Structure
Carl's Jr. has lower ongoing fees (10.0% 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 Carl's Jr.'s 1,350. 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 Subway vs Carl's Jr. franchise?
Subway requires an initial investment of $116,000 to $263,000, while Carl's Jr. requires $1.5M to $3.2M. Subway has the lower average investment at $189,500.
What are the ongoing fees for Subway vs Carl's Jr.?
Subway charges a 8.0% royalty plus 4.5% advertising fee (12.5% total). Carl's Jr. charges 4.0% royalty plus 6.0% advertising fee (10.0% total). Carl's Jr. has lower total ongoing fees.
Which franchise makes more money: Subway or Carl's Jr.?
Based on estimated average unit revenue, Carl's Jr. generates $1.3M 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 Subway have vs Carl's Jr.?
Subway has 20,133 locations, while Carl's Jr. has 1,350 locations. Subway has the larger footprint, which typically means stronger brand recognition and supply chain advantages.
Is Subway or Carl's Jr. a better franchise investment in 2026?
Both Subway and Carl's Jr. are established QSR brands with proven models. Subway offers a lower entry point, while Carl's Jr. 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.
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