Subway Australia vs McDonald's Australia
Figures as at July 2026 (Subway Australia) and July 2026 (McDonald's Australia). Confirm both against the disclosure document.
Side by side
| Subway Australia | McDonald's Australia | |
|---|---|---|
| Total investment (all-in) | $195,000–$522,000 | $1,500,000–$2,600,000 |
| Initial franchise fee | $15,000 | $45,000 |
| Fit-out & equipment | $120,000–$350,000 | $700,000–$1,500,000 |
| Working capital | $40,000 | $300,000 |
| Royalty | 8.0% | 5.0% |
| Marketing levy | 4.5% | 4.0% |
| Term | 20 years | 20 years |
| Australian outlets | 1,200 | 1,050 |
| Category | Quick-Service Food | Quick-Service Food |
Establishment ranges include working capital. Every figure is dated to its source, see each brand’s profile for the full breakdown and provenance.
Which is cheaper to get into?
Subway Australia is the cheaper way in, its establishment range starts at $195,000 against $1,500,000 for the other. Remember the all-in figure includes working capital; the gap can narrow or widen once you cost fit-out for a specific site. On ongoing cost, McDonald's Australia takes the smaller royalty (5.0% vs 8.0%), which compounds over the life of the agreement.
Both in context
Subway Australia and McDonald's Australia are both quick-service food systems. The category median all-in investment is $350,000–$900,000 with a 7.0% median royalty (Fee Index, n=96). See where each sits against the field in the Quick-Service Food Fee Index.
Common questions
Is Subway Australia or McDonald's Australia cheaper to buy?
Subway Australia has the lower entry cost. Subway Australia costs $195,000–$522,000 all-in versus $1,500,000–$2,600,000 for McDonald's Australia. These are establishment ranges including working capital, always verify against the disclosure document.
Which has more locations, Subway Australia or McDonald's Australia?
Subway Australia is the larger network, with 1,200 Australian outlets versus 1,050 for McDonald's Australia.
What royalty do Subway Australia and McDonald's Australia charge?
Subway Australia charges 8.0% royalty and a 4.5% marketing levy. McDonald's Australia charges 5.0% royalty and a 4.0% marketing levy. Both are ongoing percentages of gross sales, confirm the current rates with each franchisor.
Should I choose Subway Australia or McDonald's Australia?
It depends on your budget, which territories each has available near you, and the format you want to run. This comparison uses each franchisor's published figures; before deciding, request both disclosure documents, check territory availability, and have an accountant review the numbers.