Subway - Founded: 1965
Franchising since: 1974
In 1965, 17-year-old Fred DeLuca and family friend Peter Buck opened Pete’s Super Submarines in Bridgeport, Connecticut. With a loan from Buck for only $1,000, DeLuca hoped the tiny sandwich shop would earn enough to put him through college. After struggling through the first few years, the founders changed the company’s name to Subway and began franchising in 1974. Offering a fresh, healthy alternative to fast-food restaurants, Subway has franchises throughout the United States and in several countries, with locations in traditional and nontraditional sites alike.
Total investment: $78.6K-238.3K
Franchise fee: $15K
Ongoing royalty fee: 8%
Term of agreement: 20 years, renewable

Qualifications
Net worth requirement: $30K-90K
Cash liquidity requirement: $80K-310K
Business Experience: General business experience

Operations
65% of all franchisees own more than one unit
Number of employees needed to run franchised unit: 6 - 10
Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)

McDonalds - Founded: 1955
Franchising since: 1955
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 and the Golden Arches have since become an internationally-recognized symbol of quick-service hamburgers, fries, chicken, breakfast items, salads and milkshakes.

Total investment: $950.2K-1.8M
Franchise fee: $45K
Ongoing royalty fee: 12.5%+
Term of agreement: 20 years, renewable

Qualifications
Cash liquidity requirement: $300K
Business Experience: Industry experience, general business experience and marketing skills

Operations
83% of all franchisees own more than one unit
Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators)

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Sonic Drive in - Founded: 1954
Franchising since: 1959
Sonic Drive In Restaurants began when Troy Smith purchased the Top Hat Drive-In, a root beer stand in Shawnee, Oklahoma. He expanded from there and teamed up with Charlie Pappe. They introduced the Sonic name and began franchising in 1959. At Sonic Drive In locations, patrons order hamburgers, fries, chicken, breakfast items, specialty drinks, desserts and more curbside in their cars from a speaker box.

Total investment: $1.2M-3.2M
Franchise fee: $45K
Ongoing royalty fee: 2-5%
Term of agreement: 20 years, renewable

Qualifications
Net worth requirement: $1M
Cash liquidity requirement: $500K
Business Experience: If no industry experience, must have an operating equity partner

Operations
•60% of all franchisees own more than one unit
•Number of employees needed to run franchised unit: 25
•Absentee ownership of franchise is NOT allowed.

Pizza Hut - Founded: 1957
Franchising since: 1959
While college students in Wichita, Kansas, Frank and Dan Carney were approached by a family friend with the idea of opening a pizza parlor. Inspired, the brothers borrowed $600 from their mother, purchased secondhand equipment and rented a small building on a busy intersection in their hometown. With that, the first Pizza Hut opened its doors in 1958. Just a year later, the company incorporated and the first franchise opened in Topeka.
More than 50 years later, Pizza Hut has locations throughout the world serving its specialty pizzas. Pizza Hut is owned by Yum! Brands, parent company of A&W Restaurants, KFC, Long John Silver’s and Taco Bell.

Total investment: $317K-2.97M
Franchise fee: $25K
Ongoing royalty fee: 6%
Term of agreement: Term of agreement not renewable
Express/kiosk option available

Qualifications
Net worth requirement: $250K
Cash liquidity requirement: $150K
Business Experience:
•Industry experience
•General business experience
•Marketing skills

Papa John’s Pizza - Founded: 1985
Franchising since: 1986
John Schnatter dreamed of opening his own pizza restaurant from the time he was a high school student working at a local pizza parlor in Jeffersonville, Indiana. After getting his business degree from Ball State University in 1983, he returned home, knocked down the broom closet in his father’s tavern, sold his car to buy used restaurant equipment and began delivering pizzas.
The first Papa John’s restaurant opened in 1985, and the company began franchising in 1986. Today, Schnatter’s dream has resulted in over 3,000 Papa John’s restaurants worldwide.

Total investment: $135.8K-491.6K
Franchise fee: $25K
Ongoing royalty fee: 5%
Term of agreement: 10 years, renewable

Qualifications
Net worth requirement: $250K
Business Experience: Multi-unit quick-service general management experience preferred

Operations
•61% of all franchisees own more than one unit
•Number of employees needed to run franchised unit: 20 - 20
•Absentee ownership of franchise is allowed.

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