Subway vs Five GuysFranchise Comparison 2026
Subway and Five Guys 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 | Five Guys | Difference |
|---|---|---|---|
| Franchise Fee | $15,000 | $25,000 | -40% |
| Total Investment (Low) | $116,000 | $306,000 | -62% |
| Total Investment (High) | $263,000 | $641,000 | -59% |
| Cash Required | $80,000 | $300,000 | -73% |
| Royalty Rate | 8.0% | 6.0% | Higher |
| Advertising Fee | 4.5% | 1.5% | Higher |
| Estimated Revenue | $490,000 | $1.4M | -65% |
| Number of Locations | 20,133 | 1,700 | More |
| Year Founded | 1965 | 1986 | Older |
| Training Duration | 2 weeks | 3 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 Five Guys
Premium burger concept with fresh ingredients and no freezers. Higher food costs but strong brand loyalty and per-unit sales.
Investment Comparison
Subway requires a lower initial investment (avg $189,500) compared to Five Guys(avg $473,500), making it more accessible for first-time franchisees. However, Five Guys may offer higher revenue potential.
Fee Structure
Five Guys has lower ongoing fees (7.5% 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 Five Guys's 1,700. 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 Five Guys franchise?
Subway requires an initial investment of $116,000 to $263,000, while Five Guys requires $306,000 to $641,000. Subway has the lower average investment at $189,500.
What are the ongoing fees for Subway vs Five Guys?
Subway charges a 8.0% royalty plus 4.5% advertising fee (12.5% total). Five Guys charges 6.0% royalty plus 1.5% advertising fee (7.5% total). Five Guys has lower total ongoing fees.
Which franchise makes more money: Subway or Five Guys?
Based on estimated average unit revenue, Five Guys 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 Subway have vs Five Guys?
Subway has 20,133 locations, while Five Guys has 1,700 locations. Subway has the larger footprint, which typically means stronger brand recognition and supply chain advantages.
Is Subway or Five Guys a better franchise investment in 2026?
Both Subway and Five Guys are established QSR brands with proven models. Subway offers a lower entry point, while Five Guys 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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