McDonald's vs Jon Smith Subs Franchise Comparison

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

Start-Up Costs and Fees
 
McDonald's Franchise
Jon Smith Subs Franchise
Investment $1,314,500 - $2,306,500$309,500 - $887,760
Franchise Fee $45,000$39,500
Royalty Fee 4%6%
Advertising Fee 4%+3%
Year Founded 19551988
Year Franchised 19552007
Term Of Agreement 20 years20 years
Term Of Agreement 20 years20 years
Renewal Fee $45K$1K


Business Experience Requirements
 
McDonald's Franchise
Jon Smith Subs Franchise
Experience
  • Industry experience
  • General business experience
  • Marketing skills
    		• -

    Financing Options
     
    McDonald's Franchise
    Jon Smith Subs Franchise
      In-House/3rd PartyIn-House/3rd Party
    Franchise Fees No/No-/Yes
    Start-up Costs No/No-/Yes
    Equipment No/Yes-/Yes
    Inventory No/No-/Yes
    Receivables No/No-/Yes
    Payroll No/No-/Yes

    Training & Support
     
    McDonald's Franchise
    Jon Smith Subs Franchise
    Training On-The-Job Training: 500 hours Classroom Training: 72 hours Additional Training: At local McDonald's restaurant On-The-Job Training: 80 hours Classroom Training: 80 hours Additional Training: At existing store
    Support Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform
    Marketing Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app
    Operations 82% of all franchisees own more than one unit

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

    		 Absentee Ownership Allowed Number of Employees Required to Run: 15 - 20

    Expansion Plans
     
    McDonald's Franchise
    Jon Smith Subs Franchise
    US Expansion YesYes
    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 Jon Smith Subs

    Sometimes it seems that everyone sells the “highest quality food at the lowest price.” But saying it doesn’t make it so. I, Jon Smith, am totally committed to providing the best quality food and service for my customers. Look at our food, look at our stores, look at our employees and see our commitment. At Jon Smith Subs, quality is our only deal.
    The total investment necessary to begin operation of a Jon Smith Subs Restaurant is from $309,500 to $615,790. These amounts include $134,500 to $213,790 that you must pay to the franchisor and its affiliates.
    The total investment necessary to begin operation of a Jon Smith Subs Restaurant as a developer under the Multi-Unit Development Agreement is from $370,500 to $887,760 for five restaurants. These amounts include $194,500 to $677,290 that you must pay to the franchisor and its affiliates.
    Veteran Incentives  10% off franchise fee