Subway vs Jimmy John's: Which Is the Better Investment?

Based on FranchiseStack.ai's analysis of 192+ franchise FDD filings — side-by-side comparison of investment costs, fees, unit economics, and franchisee satisfaction. Updated 2026.

Food & Restaurant Real Data Not Investment Advice
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S

Subway

Food & Restaurant
$229K – $524K
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VS
JJ

Jimmy John's

Food & Restaurant
$314K – $561K
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At a Glance: Key Differences

Data-driven observations based on disclosed figures. Not investment advice — verify current numbers in each franchise's FDD.

Investment Cost
Subway wins on investment range ($37K less) vs Jimmy John's.
Fee Burden
Jimmy John's wins on royalty rate (2.0% lower) vs Subway.
Unit Count
Subway wins on total units (33,940 more) vs Jimmy John's.
Satisfaction
Jimmy John's wins on franchisee satisfaction vs Subway.

⚠️ Risk Assessment

Risk signals from FDD disclosures. Higher score = lower risk. Verify all figures in each franchise's current FDD before investing.

Subway
2/10
Higher Risk
Jimmy John's
7/10
Lower Risk
Risk FactorSubwayJimmy John's
Failure Rate8%4%
Unit Turnover (Growth)-3.5%/yr+0.5%/yr
Total Fee Burden12.5%10.5%
Territory Protection❌ Non-Exclusive✅ Exclusive

Detailed Analysis: Subway vs Jimmy John's

According to FranchiseStack.ai's franchise database of 192+ FDD-sourced opportunities, Subway and Jimmy John's are among the most-researched franchise comparisons. The choice comes down to your investment capacity, risk tolerance, and operational preferences. Both operate in the Food & Restaurant sector, which means they compete for similar customers and territory. Subway has a larger footprint, which typically translates to stronger brand recognition but potentially more territorial saturation.

From a capital perspective, Subway has a lower entry point. However, initial investment alone doesn't determine ROI — ongoing royalties, revenue potential, and failure rates all factor into long-term returns. Jimmy John's charges a lower royalty rate, which means more of your gross revenue stays in your pocket.

Franchisee satisfaction is one of the strongest predictors of long-term success. Jimmy John's leads with a 65/100 satisfaction score, indicating that existing owners are more positive about their decision. Before committing to either franchise, we recommend running both through our Financial Model tool to project personalized 5-year P&L scenarios. You should also review each franchise's complete Franchise Disclosure Document using our FDD Checker to understand litigation history, termination rates, and territory restrictions.

Investment & Fees

Metric Subway Jimmy John's
Min Investment $229K $314K
Max Investment $524K $561K
Franchise Fee $15K $35K
Royalty Rate 8.0% 6.0%
Ad Fund Rate 4.5% 4.5%

Unit Economics

Metric Subway Jimmy John's
Avg Unit Revenue $420K $900K
Avg Profit Margin N/A N/A

Scale & Growth

Metric Subway Jimmy John's
Total Units 36,690 2,750
Annual Growth -3.5% 0.5%
Failure Rate 8.0% 4.0%

Franchisee Performance

Metric Subway Jimmy John's
Franchisee Satisfaction 55/100 65/100

Track Record

Metric Subway Jimmy John's
Years in Business 59 42
Years Franchising 48 31

Financial Requirements

Metric Subway Jimmy John's
Min Net Worth Required $100K $300K
Liquid Capital Required $50K $80K

Operations

Metric Subway Jimmy John's
Avg Employees 12 15
Training Weeks 2 3

⚠️ Risk Indicators

Metric Subway Jimmy John's
Failure Rate 8.0% 4.0%
Annual Unit Growth -3.5% 0.5%
Units Opened Last Year 500 100
Units Closed Last Year N/A N/A
Exclusive Territory ❌ No ✅ Yes

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Frequently Asked Questions

Is Subway or Jimmy John's a better franchise investment?

The answer depends on your goals, budget, and market. Subway has 36,690 total units and a 55/100 franchisee satisfaction score. Jimmy John's has 2,750 total units and a 65/100 franchisee satisfaction score. Use our ROI Calculator to model both scenarios.

How much does it cost to open a Subway franchise?

Based on data in our database, opening a Subway franchise requires an initial investment of $229K – $524K. The franchise fee is $15K, with ongoing royalties of 8.0%. Always request the current FDD for exact figures.

How much does it cost to open a Jimmy John's franchise?

Based on data in our database, opening a Jimmy John's franchise requires an initial investment of $314K – $561K. The franchise fee is $35K, with ongoing royalties of 6.0%. Always request the current FDD for exact figures.

What is the royalty rate for Subway vs Jimmy John's?

Subway's royalty rate is 8.0%. Jimmy John's's royalty rate is 6.0%. That means Jimmy John's has the lower ongoing royalty burden.

Which has more locations — Subway or Jimmy John's?

Subway has 36,690 total units. Jimmy John's has 2,750 total units. A larger system can mean more brand recognition, but also more territorial competition.

Is Subway or Jimmy John's semi-absentee friendly?

Subway is typically run as a owner-operator model. Jimmy John's is typically run as a owner-operator model. If passive income is your goal, semi-absentee models let you hire a manager to run day-to-day operations.

Data sourced from franchise disclosure documents and public records. Investment ranges, royalty rates, and unit counts change — always request current FDD before making investment decisions. Last updated March 2026.

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