McDonald's vs Sub Station II Franchise Comparison

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

Start-Up Costs and Fees
 
McDonald's Franchise
Sub Station II Franchise
Investment $1,314,500 - $2,306,500$188,500 - $357,000
Franchise Fee $45,000$20,000
Royalty Fee 4%4%
Advertising Fee 4%+-
Year Founded 19551975
Year Franchised 19551976
Term Of Agreement 20 years10 years
Term Of Agreement 20 years10 years
Renewal Fee $45K-


Business Experience Requirements
 
McDonald's Franchise
Sub Station II Franchise
Experience
  • Industry experience
  • General business experience
  • Marketing skills

  • General business experience
    		•

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

    Training & Support
     
    McDonald's Franchise
    Sub Station II Franchise
    Training On-The-Job Training: 500 hours Classroom Training: 72 hours Additional Training: At local McDonald's restaurant -
    Support Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Newsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations
    Marketing Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app Co-op advertising, Ad slicks, Regional advertising
    Operations 82% of all franchisees own more than one unit

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

    		 25% of all franchisees own more than one unit

    Number of employees needed to run franchised unit: 8

    Absentee ownership of franchise is allowed. (85% of current franchisees are owner/operators)

    Expansion Plans
     
    McDonald's Franchise
    Sub Station II Franchise
    US Expansion YesYes
    Canada Expansion NoNo
    International Expansion YesNo

    Company Overviews

    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.


    "Top   ""  "Entrepreneur

      "franchiserankingscom"                                                                                                                         
    #7 on Franchise Rankings.com                                                                                                                                                            
    #3 in Canada's top franchises.
    #3 in Franchise 500 for 2020
    #11 in Franchise 500 for 2021










    About Sub Station II

    Quality Food. Great Prices. Since 1975, Sub Station II has been striving to serve our customers a fresh, delicious, and healthy product. We were founded on the simple belief of making fresh food fast, and customized to fit your tastes. Each one of our sandwiches is sliced to order and piled high right before your eyes, with our produce prepared fresh daily. Today, Sub Station II has more than 40 locations spread throughout 5 states in the Southeast. With Sub Station II’s recipe for success and reinvigorated corporate team, it’s beginning to move in a direction that will undoubtedly make it one of the major sub sandwich chains in the future. With today’s fast paced lifestyles, more and more people are eating out than ever before. While the number of restaurants and choices have increased over the years, not all of them have the same relentless drive for quality as Sub Station II. We're here to make sure that you and your family have a quality dining experience at all of our locations, all of the time.