McDonald's vs Lenny's Sub Shop Franchise Comparison

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

Start-Up Costs and Fees
 
McDonald's Franchise
Lenny's Sub Shop Franchise
Investment $1,314,500 - $2,306,500$188,216 - $396,146
Franchise Fee $45,000$20,000 - $25,000
Royalty Fee 4%6%
Advertising Fee 4%+2%
Year Founded 19551998
Year Franchised 19552001
Term Of Agreement 20 years-
Term Of Agreement 20 years-
Renewal Fee $45K-


Business Experience Requirements
 
McDonald's Franchise
Lenny's Sub Shop Franchise
Experience
  • Industry experience
  • General business experience
  • Marketing skills
    		• -

    Financing Options
     
    McDonald's Franchise
    Lenny's Sub Shop 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-/-
    Payroll No/No-/-

    Training & Support
     
    McDonald's Franchise
    Lenny's Sub Shop Franchise
    Training On-The-Job Training: 500 hours Classroom Training: 72 hours Additional Training: At local McDonald's restaurant Our motto is More Food, More Taste, More Personality! - and that includes more training too. We do more than just give you our recipes and well wishes. Training begins the minute you sign your franchise agreement. You are given a self-paced study program to prepare you for our extensive classroom and restaurant training. After you learn the basics you get to experience a new restaurant opening with our operations team prior to opening your own restaurant. We guide you through every step to ensure you're ready to spread the "Lenny's magic" in your community. On-The-Job Training: 196 hours Classroom Training: 40 hours Additional Training: As needed
    Support Purchasing Co-ops Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software From the moment you sign on until after your store opens, we are with you every step of the way. We will assist you in site selection and building out your restaurant. We will train you in all aspects of operating your restaurant and our support doesn't stop once you start your business. From our prized recipe specifications, to our streamlined operations manual, to our ongoing operational support, we are here for you. 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 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: 8 - 10


    Expansion Plans
     
    McDonald's Franchise
    Lenny's Sub Shop Franchise
    US Expansion YesYes
    Canada Expansion No-
    International Expansion Yes-

    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 Lenny's Sub Shop

    Authentic Philadelphia-style sub shop featuring great subs and Philly Cheesesteaks, meats and cheeses sliced to order, extra large portions, fresh baked breads and cookies.
    Since opening in Memphis in 1998, Lennys Grill & Subs has been a stand-out franchise in the $21 billion-a-year sub sandwich category. Lennys Grill & Subs delivers on what consumers really want: delicious sandwiches made with authentic ingredients and an emphasis on customer service that inspires our guests to return time and time again.
    A Lennys Grill & Subs location works in just about any market and is an amazing business to own.

    Veteran Incentives  $5,000 off franchise fee
    "Top
    #50 in Gator's Top franchises.