McDonald's vs The Submarine Station Franchise Comparison

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

Start-Up Costs and Fees
 
McDonald's Franchise
The Submarine Station Franchise
Investment $1,314,500 - $2,306,500N/A
Franchise Fee $45,000$8,000
Royalty Fee 4%$500/mo
Advertising Fee 4%+-
Year Founded 1955-
Year Franchised 1955-
Term Of Agreement 20 years5 years
Term Of Agreement 20 years5 years
Renewal Fee $45K-


Business Experience Requirements
 
McDonald's Franchise
The Submarine Station Franchise
Experience
  • Industry experience
  • General business experience
  • Marketing skills
    		• -

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

    Training & Support
     
    McDonald's Franchise
    The Submarine Station 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 -
    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
     
    McDonald's Franchise
    The Submarine Station Franchise
    US Expansion Yes-
    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 The Submarine Station

    As a company grows there are three main methods of growth to choose from: sole proprietorship, joint venture, or franchising. The franchise system is an exciting model because of the common shared interest in the founding company (the Franchisor) and the small business owner (the Franchisee) that both want the system to work. The problem with most franchising models is that a Franchisee is under such stringent restrictions from the Franchisor. Understandably, the Franchisor has a huge interest in protecting the brand. This interest in protecting the brand has inherent drawbacks that now become the Franchisee's issues. A few of these drawbacks are: real estate long-term leasing or purchasing, expensive proprietary equipment, forced product price points, etc. Who pays for this in the end? Well, the Franchisee does. Who looks out for the Franchisee? The Submarine Station will!