Dairy Queen vs Subway
Dairy Queen vs Subway: Dairy Queen costs $549K–$2.5M to open; Subway costs $263K–$630K. Dairy Queen has 1,575 units, Subway has 3,936. SBA loan history: Dairy Queen = 2,005 loans (7.2% default); Subway = 6,080 loans (5.5% default). The franchise with more SBA-funded units, lower default rate, and lower royalty load is the safer financing bet — see the comparison below.
Health & Performance
FPI Score | 60/100 | 60/100 |
Health Tier | Moderate | Moderate |
Confidence | N/A | N/A |
Lending Trend | Declining | Declining |
SBA Lending
SBA Loans | 2,005 | 6,080 |
SBA Volume | — | — |
Default Rate | 7.2% | 5.5% |
Peer Tier | major | major |
Investment & Costs
Total Investment | $549K – $2.5M | $263K – $630K |
Franchise Fee | $45K | $15K |
Royalty Rate | 4% | 8% |
Ad Fund | 6% | 4.5% |
Liquid Capital | $400K | $40K |
Net Worth Required | $750K | $310K |
Financial Performance (Item 19)
Item 19 Status | Not Disclosed | Not Disclosed |
System Size & Operations
Total Units | 1,575 | 3,936 |
Franchised Units | 1,575 | 3,936 |
Company-Owned | — | — |
Term Length | 20 yrs | 20 yrs |
Brand Information
Year Founded | 1940 | 1965 |
Franchising Since | 1944 | 1974 |
Years Franchising | 82 yrs | 52 yrs |
Headquarters | Bloomington, MN | Shelton, CT |
Category | Limited-Service Restaurants | Limited-Service Restaurants |
Website | ||
FDD Year | 2025 | 2026 |
Which Is Better — Dairy Queen or Subway?
Lower upfront capital required
Subway
Dairy Queen: $549K starting · Subway: $263K starting
More SBA lender confidence
Subway
Dairy Queen: 2,005 SBA loans · Subway: 6,080 SBA loans
Lower historical default rate
Subway
Dairy Queen: 7.2% · Subway: 5.5%
Larger system & brand presence
Subway
Dairy Queen: 1,575 units · Subway: 3,936 units
Lower ongoing royalty load
Dairy Queen
Dairy Queen: 4% · Subway: 8%
More lender financing options
Subway
Dairy Queen: 479 unique lenders · Subway: 831 unique lenders
Decision matrix uses publicly disclosed FDD and SBA loan data. Not a recommendation — your best franchise depends on capital, market, operating capacity, and risk tolerance.
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About These Franchises
Dairy Queen vs Subway: Franchise Funding Comparison
Comparing Dairy Queen and Subway is about more than brand preference — it's about which franchise fits your financial profile and funding strategy. Investment ranges from $263K to $2.5M.
Both brands have active SBA lending histories — Dairy Queen with 2,005 SBA loans and Subway with 6,080. This means proven lender acceptance and established underwriting paths for franchise buyers.
SBA 7(a) loans are the most common franchise funding vehicle, offering up to $5M with as little as 10% down. PeerSense connects franchise buyers with the specific lenders who have approved loans for these brands — not generic referrals, but lenders with actual franchise lending track records.
Data sourced from SBA loan records, Franchise Disclosure Documents, and public filings. Updated regularly. Not financial advice — consult with a lending professional before making investment decisions.