Subway vs Jersey Mike's

Franchise Comparison (2026)

2026 FDD Data

Jersey Mike's generates 2.3x more revenue ($1.1M vs $480K) with only 1% failure rate, but requires $250K-$955K investment. Subway offers the lowest QSR entry point ($116K) and largest network (20,000 units), but faces market share decline and lower unit economics.

Subway and Jersey Mike's represent two different strategies in the sub sandwich franchise market. Subway, once controlling 56% market share, has seen decline while Jersey Mike's has surged from 6% to projected 13% share by 2025. Subway offers the lowest entry cost in QSR at $116K-$263K but generates only $480K average revenue. Jersey Mike's requires nearly 4x the investment but delivers 2.3x the revenue at $1.1M per location. This comparison analyzes whether Subway's scale or Jersey Mike's premium positioning offers the better franchise opportunity.

Quick Comparison

Franchise Fee

Subway

$15,000

Jersey Mike's

$18,500

Total Investment

Subway

$116K - $263K

Jersey Mike's

$250K - $955K

Royalty Rate

Subway

8%

Jersey Mike's

6.5%

Total Units

Subway

20,000

Jersey Mike's

2,800

Avg Revenue

Subway

$480,000

Jersey Mike's

$1.11M

Detailed Comparison

MetricSubwayJersey Mike's
Initial Investment
Franchise Fee$15,000$18,500
Total Investment (Low)$116,000$250,000
Total Investment (High)$263,000$955,397
Net Worth Required$80,000$300,000
Liquid Capital Required$30,000$100,000
Ongoing Fees
Royalty Rate8%6.5%
Advertising Fund4.5%4%
Technology FeeNot DisclosedNot Disclosed
System Size & Growth
Total Units20,0002,800
Franchised Units20,0002,800
Company-Owned Units00
3-Year Net GrowthNot DisclosedNot Disclosed
Financial Performance (Item 19)
Item 19 DisclosedYesYes
Average Revenue$480,000$1,113,000
Median RevenueNot DisclosedNot Disclosed
Franchise Terms
Initial TermNot DisclosedNot Disclosed
Renewal TermNot DisclosedNot Disclosed
Territory ProtectionNot DisclosedNot Disclosed
Requirements
Owner-Operator RequiredNot DisclosedNot Disclosed
Training HoursNot DisclosedNot Disclosed
Years Franchising61 years70 years
Risk Indicators
Litigation MattersNot DisclosedNot Disclosed
Termination RateNot DisclosedNot Disclosed

Key Differences

  • Jersey Mike's averages $1.1M revenue vs Subway's $480K

  • Subway investment starts at $116K; Jersey Mike's starts at $250K

  • Subway has 20,000 locations; Jersey Mike's has 2,800 (and growing 350+/year)

  • Jersey Mike's has 1% failure rate; Subway has experienced net unit decline

  • Subway charges 12.5% total fees (8% + 4.5%); Jersey Mike's charges 10.5%

  • Subway's market share fell from 56% to 46% (2019-2023); Jersey Mike's grew to 13%

Investment Fit Analysis

Who Should Consider Subway

Subway suits first-time franchisees seeking the lowest possible entry point into food franchising, willing to accept lower unit economics for a proven global brand.

Lowest investment in QSR ($116K-$263K)

Only $30K liquid capital required

Largest sub sandwich network (20,000 units)

Simple operating model

Market share has declined significantly

Lower average revenue ($480K)

Who Should Consider Jersey Mike's

Jersey Mike's suits investors seeking premium positioning with strong growth trajectory and superior unit economics, who have the capital for a larger investment.

Higher average revenue ($1.1M)

Only 1% first-year failure rate

Aggressive growth (350 new units/year)

Market share growing (6% to 13%)

Higher investment required ($250K-$955K)

$300K net worth requirement

Frequently Asked Questions

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Disclaimer

This comparison is provided for informational purposes only. Data has been aggregated from publicly available sources including Franchise Disclosure Documents, industry publications, and franchise analysis websites.

Prospective franchisees should review the complete FDD for each franchise, conduct their own due diligence, and consult with qualified legal and financial advisors before making any investment decisions.