McDonald's vs Zero's Subs Franchise Comparison

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

Start-Up Costs and Fees
 
McDonald's Franchise
Zero's Subs Franchise
Investment $1,314,500 - $2,306,500$150,000 - $250,000
Franchise Fee $45,000$15,000
Royalty Fee 4%6%
Advertising Fee 4%+-
Year Founded 19551967
Year Franchised 19551996
Term Of Agreement 20 years15 years
Term Of Agreement 20 years15 years
Renewal Fee $45K10% of current franchise fee


Business Experience Requirements
 
McDonald's Franchise
Zero's Subs Franchise
Experience
  • Industry experience
  • General business experience
  • Marketing skills

  • Industry experience
  • General business experience
    		•

    Financing Options
     
    McDonald's Franchise
    Zero's Subs 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/Yes
    Receivables No/NoNo/No
    Payroll No/NoNo/No

    Training & Support
     
    McDonald's Franchise
    Zero's Subs 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, Toll-free phone line, Grand opening, Internet, Field operations/evaluations
    Marketing Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app Ad slicks, National media
    Operations 82% of all franchisees own more than one unit

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

    Number of employees needed to run franchised unit: 10

    Absentee ownership of franchise is allowed. (70% of current franchisees are owner/operators)

    Expansion Plans
     
    McDonald's Franchise
    Zero's Subs Franchise
    US Expansion Yes-
    Canada Expansion NoNo
    International Expansion YesYes

    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 Zero's Subs

    In 1967, Gene Schmidt started ZERO'S SUBS. Zero’s Subs is one of the largest regional sandwich franchises in the U.S. with more than 30 restaurants nationally. Since its inception in Virginia Beach in 1967, Zero’s Subs has created a proven fast, casual concept which offers high-quality foods, such as hot oven-baked subs, hearth-baked bread, Hormel meats, buffalo chicken wings, innovative health-conscious salads, wraps and pizza - all under one roof.