Firehouse Subs vs McDonald's Franchise Comparison
Below is an in-depth analysis and side-by-side comparison of Firehouse Subs vs McDonald's including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
Investment |
$57,502 - $868,696 | $1,314,500 - $2,306,500 |
Franchise Fee |
$20,000 | $45,000 |
Royalty Fee |
6% | 4% |
Advertising Fee |
3-5% | 4%+ |
Year Founded |
1994 | 1955 |
Year Franchised |
1995 | 1955 |
Term Of Agreement |
- | 20 years |
Term Of Agreement |
- | 20 years |
Renewal Fee |
- | $45K |
Business Experience Requirements |
Experience |
1. Minimum of $80k to invest
2. Credit score of 650+
3. Strong inner drive for excellence
4. Devotion to your Firehouse Subs business
5. Motivated and community-minded
6. Must love subs! | Industry experience General business experience Marketing skills |
Financing Options |
|
In-House/3rd Party | In-House/3rd Party |
Franchise Fees |
No/Yes | No/No |
Start-up Costs |
No/No | No/No |
Equipment |
No/Yes | No/Yes |
Inventory |
No/Yes | No/No |
Receivables |
No/No | No/No |
Payroll |
No/No | No/No |
Training & Support |
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
|
Marketing |
- | 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) |
Expansion Plans |
US Expansion |
Yes | Yes |
Canada Expansion |
Yes | No |
International Expansion |
Yes | Yes |
Company Overviews
About Firehouse Subs
Our extraordinary steaming procedure stirs our exceptional meats and cheeses. At the point when our sub sandwiches are served in eateries highlighting genuine firefighting stylistic layout, this is a blend people return for over and over.
Spreading Like Wildfire
Surpassing 1,000 establishment areas, our Firehouse Subs development is deliberately figured to improve potential, gain, speculation, and obviously, our franchisees' prosperity.
Operational Excellence
With an always developing history of inventive items, an emphasis on uncommon client benefit, and a stand-out brand character, Firehouse Subs is focused on building benefit for franchisees.
Enjoy More Subs Save More Lives
The total investment necessary to begin operation of a single Firehouse Subs Restaurant ranges from $57,502 to $862,591 for Traditional restaurants; $355,118 to $644,047 for End-Cap Strip Mall Restaurants w/
Drive Thru; and $868,696 for Free-Standing Restaurants w/ Drive Thru.
These totals include the following amounts that must be paid to the
franchisor or their affiliates: an initial franchise fee of $20,000; the
fee for a mural ranges from $3,000 to $4,600; and the MIS System Fee
ranges from $0 to $1,200.
If you sign an Area Development Agreement, you
will also pay a Development Fee equal to $10,000 times the number of
Restaurants to be developed. The portion of the Development Fee
allocable to each Restaurant (which is $10,000 for each Restaurant) will
be credited against the initial franchise fee for that Restaurant. The
total investment necessary to develop from 2 to 5 Restaurants is $89,502
to 930,591 for Traditional Restaurants; $387,118 to $712,047 for
End-Cap Strip Mall Restaurants / Drive Thru; $900,696 to $936,690 for
Free-Standing Restaurants w/ Drive Thru.
Veteran Incentives $2,000 off first-store franchise fee
#59 in Franchise 500 for 2020.
#78 in Franchise 500 for 2021.
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.
#7 on Franchise Rankings.com
#3 in Canada's top franchises.
#3 in Franchise 500 for 2020
#11 in Franchise 500 for 2021