Tubby's Sub Shops vs McDonald's Franchise Comparison

Below is an in-depth analysis and side-by-side comparison of Tubby's Sub Shops vs McDonald's including start-up costs and fees, business experience requirements, training & support and financing options.

Start-Up Costs and Fees
 
Tubby's Sub Shops Franchise
McDonald's Franchise
Investment $112,900 - $293,500$1,314,500 - $2,306,500
Franchise Fee $17,500 - $20,000$45,000
Royalty Fee 4%-6%4%
Advertising Fee 4%4%+
Year Founded 19681955
Year Franchised 19781955
Term Of Agreement 10 years20 years
Term Of Agreement 10 years20 years
Renewal Fee -$45K


Business Experience Requirements
 
Tubby's Sub Shops Franchise
McDonald's Franchise
Experience -
  • Industry experience
  • General business experience
  • Marketing skills
    		•

    Financing Options
     
    Tubby's Sub Shops Franchise
    McDonald's Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/YesNo/No
    Start-up Costs No/YesNo/No
    Equipment No/YesNo/Yes
    Inventory No/YesNo/No
    Receivables No/NoNo/No
    Payroll No/NoNo/No

    Training & Support
     
    Tubby's Sub Shops Franchise
    McDonald's Franchise
    Training On-The-Job Training: 92 hours Classroom Training: 28 hours Additional Training: Company store On-The-Job Training: 500 hours Classroom Training: 72 hours Additional Training: At local McDonald's restaurant
    Support Newsletter Meetings/Conventions Toll-Free Line Grand Opening Field Operations Site Selection Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software
    Marketing National Media Social media Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app
    Operations 20% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 3 - 4

    Absentee ownership of franchise is allowed. (90% of current franchisees are owner/operators)

    		 82% of all franchisees own more than one unit

    Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)

    Expansion Plans
     
    Tubby's Sub Shops Franchise
    McDonald's Franchise
    US Expansion YesYes
    Canada Expansion NoNo
    International Expansion NoYes

    Company Overviews

    About Tubby's Sub Shops

    Founder Richard Paganes opened the first Tubby's Sub Shop in 1968 in St. Clair Shores, Michigan. The company began franchising in 1978 and has locations in the Midwest and southeastern United States. Tubby's Sub Shop, which began as a family-owned and -operated business, is now public and is based in Roseville, Michigan.

    About McDonald's

    Ray Kroc, a milkshake mixer salesman, ventured to California in 1954 to visit McDonald's hamburger stand, where he heard they were running eight mixers at once. Kroc was impressed by how rapidly customers were served and, seeing an opportunity to sell many more milkshake machines, encouraged brothers Dick and Mac McDonald to open a chain of their restaurants. Kroc became their business partner and opened the first McDonald's in Des Plaines, Illinois in 1955.
    McDonald's brand is in 122 countries around the world. Thirty thousand locations serve 51 million customers each day. More than 70 percent of McDonald's restaurants around the world are owned and operated by independent local business people. Most standalone McDonald's restaurants offer both counter and drive-through service, with indoor and sometimes outdoor seating. The Drive-Thru, Auto-Mac, or McDrive as it is known in many countries, often has separate stations for placing, paying for, and picking up orders, though the former two steps are frequently combined. In some countries "McDrive" locations near highways offer no counter service or seating. In contrast, locations in high-density city neighborhoods often omit drive-through service.


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