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Below is an in-depth analysis and side-by-side comparison of McDonald's vs Jerry's Subs & Pizza including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $1,314,500 - $2,306,500 | $250,000 - $350,000 |
Franchise Fee | $45,000 | $25,000 |
Royalty Fee | 4% | 6% |
Advertising Fee | 4%+ | - |
Year Founded | 1955 | 1954 |
Year Franchised | 1955 | 1980 |
Term Of Agreement | 20 years | 20 years |
Term Of Agreement | 20 years | 20 years |
Renewal Fee | $45K | $25K |
Business Experience Requirements |
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Experience | ||
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | No/No |
Start-up Costs | No/No | No/Yes |
Equipment | No/Yes | No/Yes |
Inventory | No/No | No/No |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
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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, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives |
Marketing | Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app | Co-op 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) |
Absentee ownership of franchise is allowed. (95% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | Yes | Yes |
Canada Expansion | No | No |
International Expansion | Yes | No |
The first Jerry's Subs opened in Wheaton, Maryland, in 1954, selling over-stuffed submarine sandwiches and New York-style pizza. Since it started franchising in 1980, the company has grown to include locations along the East Coast, as well as in the Caribbean and Central America.