Sub Sandwich Franchise Comparison: Which is Best for Franchisees?

Which Sub Sandwich Franchise is the Best to Own as a Franchisee?

Ever wonder what it would take to own a successful franchise? The thought of owning one has no doubt crossed the minds of many of us. Franchises represent an opportunity for business owners to get a head start in the use of a popular brand and lay out the framework of how to run the business. But are franchises a good investment? How much do they cost to operate?




One of the most successful franchise industries in terms of sheer number of locations is the food industry. Within the food industry, it’s hard to imagine a more successful model than that of the sub and sandwich shops. It’s difficult to drive past a strip mall or through Main Street without seeing at least one Subway, Firehouse, Quiznos, Jersey Mike’s, or Jimmy John’s. We’ll take a look at exactly how much it costs to operate these franchises and some other factors to consider before taking a leap into the world of franchising. Data was last updated in March, 2021.

best sub franchise

Jimmy John’s

Jimmy John's franchise

  • Website: Jimmy John’s Franchise
  • # of U.S. Locations: 2,800
  • Initial Investment: $313,600 – $556,100
  • Franchise Fee: $35,000
  • Royalty Fee: 6% of gross sales
  • Advertising Fee: 4.5% of gross sales
  • Net Worth Requirement: $1,000,000
  • Liquid Capital Cash Requirement: $200,000

Jersey Mike’s Franchise

Jersey Mikes franchise

  • Website: Jersey Mike’s Franchise
  • # of U.S. Locations: 1,742
  • Initial Investment: $169,001 – $804,405
  • Franchise Fee: $18,500
  • Royalty Fee: 6.5% of gross sales
  • Advertising Fee: 5% of gross sales
  • Net Worth Requirement: $300,000
  • Liquid Capital Cash Requirement: $100,000

Quiznos

Quiznos franchise

  • Website: Quiznos Franchise
  • # of U.S. locations: 500
  • Initial Investment: $211,859 – $326,549
  • Franchise Fee: $10,000
  • Royalty Fee: 5% of gross sales
  • Advertising Fee: 2% of gross sales
  • Net Worth Requirement: $125,000
  • Liquid Capital Cash Requirement: $70,000

Subway

Subway franchise




  • Website: Subway Franchise
  • # of U.S. locations: 24,000
  • Initial Investment: $140,050 – $342,400
  • Franchise Fee: $15,000
  • Royalty Fee: 8% of gross sales
  • Advertising Fee: 4.5% of gross sales
  • Net Worth Requirement: $80,000 – $310,000
  • Liquid Capital Cash Requirement: $30,000 – $90,000

Firehouse Subs

Firehouse Subs franchise

  • Website: Firehouse Subs Franchise
  • # of U.S. locations: 1,177
  • Initial Investment: $57,502 – $868,696
  • Franchise Fee: $20,000
  • Royalty Fee: 6% of gross sales
  • Advertising Fee: 3+% of gross sales
  • Net Worth Requirement: $350,000 – $425,000
  • Liquid Capital Cash Requirement: $80,000 – $150,000

What is the Best Sub Franchise to Own?

I’d skip Subway because there are so darn many of them already. They are the Starbucks of sandwiches, with a store seemingly on every corner. There are limited to no barriers to entry, hence the 21K+ locations. Quiznos has been in and out of bankruptcy.

I’d probably choose Jimmy John’s, as they are the fastest growing and their advertising presence is great. And – their bread is addictive! If you’re going to get in this business, you might as well like the product!

In all honesty, this is an industry I probably would not decide to jump into. The competition is fierce and there is no scarcity. Costs to get in aren’t bad, but that has its own set of problems. I’d be looking for the next big franchising opportunity.

Sub Franchise Discussion:

  • Which restaurant franchise would you choose? Why?
  • Have you considered opening any kind of franchise? What franchise? Why?
  • Which sandwich/sub spot do you like to eat at the most?

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