How Much Does It Cost to Start a Fast Food Franchise?
- Subway: $116,000-$263,000 One of the least expensive franchises to start, Subway offers an equipment leasing program and leverages its relationship with lenders to help franchisees secure financing. Initial franchise fee: $15,000 Royalties: 8% of gross weekly sales, minus sales tax ...
- Pizza Hut: $295,000-$422,000 ...
- Wendy’s: $2-$3.5 million ...
- Burger King: $1.2-$2.2 million ...
- Taco Bell ...
Full Answer
How much to buy a fast food franchise?
Most Popular Food Franchises and How Much They Cost
- McDonald's Franchise. You will need a minimum of $955,000 in nonborrowed, personal resources to be considered for a McDonald's franchise.
- Subway Franchise. ...
- Pinkberry Franchise. ...
- Wendy's Franchise. ...
- Domino's Pizza Franchise. ...
- Pizza Hut Franchise. ...
- Dunkin Donuts Franchise. ...
- Taco Bell Franchise. ...
- KFC. ...
What is the cheapest food franchise to buy?
What are the cheapest franchises to open?
- Baskin-Robbins: This franchise’s investment could cost the same or less than the above, so it is an excellent option.
- Jack in the Box: Jack in the Box belongs to Qdoba Mexican Grill. ...
- MaidPro: On its official website it displays reasonable prices for its franchise.
How much does it cost to start a food franchise?
How Much For A Restaurant Franchise? It costs on average $275,000 to open a restaurant, or $3,046 per seat in a leased facility. You could buy the building for $425,000 or $3,734 per seat if you so desire. To make your dream come true, it is imperative that you consider all the costs of starting a restaurant.
What does it cost to become a fast food franchisee?
Fast food franchise cost varies from $150K to up to $ 2 mln. There is an abundant choice of businesses in the USA. In order to help you find the right concept quickly, we have made a list of the best fast food franchises to open. Here are the most popular 10 fast food franchises in the USA McDonald's. Founded in: 1955 Franchising since: 1955
How much do fast food franchise owners make?
Fast food franchises are incredibly profitable compared to other types of businesses. According to a McKinsey study, the average fast-food franchise makes a gross profit of more than 20 percent on revenues of $2.5 million per year. That's more than twice the profitability of the average small business.
How much does McDonald's franchise cost?
McDonald's franchisee applicants must have a minimum of $500,000 available in liquid assets and pay a $45,000 franchise fee. Those looking to launch a new McDonald's franchise can expect to shell out between $1,314,500 and $2,306,500. Existing franchise prices can cost upwards of $1 million or more.
What does a Taco Bell franchise cost?
Total cost: A standalone Taco Bell franchise location is estimated to cost between $1.2 million and $2.6 million, exclusive of land and lease costs. Initial investment: Initial investments will vary significantly based on your location and the type of restaurant.
What fast food franchise makes the most money?
The Revenue of Fast-Food Chains in America TranscriptRestaurantSales (2017 Total U.S. Sales)Number of U.S. FranchisesStarbucks$13,167,610,00013,930Subway$10,800,000,00025,908Burger King$10,028,320,0007,226Taco Bell$9,790,150,0006,44626 more rows
How much is a KFC franchise?
For non-traditional KFC outlets, KFC charges an initial license fee of $22,500. For traditional KFC franchise agreements, the franchise (or initial license) fee is $45,000 split into the deposit fee and the option fee.
Why does it cost 10k to own a Chick-fil-A?
The franchisee only pays the $10k franchise fee. Chick-fil-A pays for (and retains ownership of) everything — real estate, equipment, inventory — and in return, it takes a MUCH bigger piece of the pie. While a franchise like KFC takes 5% of sales, Chick-fil-A commands 15% of sales + 50% of any profit.
What is Starbucks franchise fee?
What are the Financial requirements for a Starbucks licensed store? You need to pay the licensing fee of between $50,000 – $315,000 and you must have over $1,000,000 in liquid assets to be considered for a licensed store by Starbucks.
How Much Is a Subway franchise?
The initial franchise fee ranges from $10,000 - $15,000* (US dollars) depending on your country.
What does a Pizza Hut franchise cost?
Pizza Hut has a franchise fee of $25,000 for a 20-year agreement, although the total initial investment ranges between $297,000 and $2,109,000. Additionally, franchisees must pay the company ongoing royalty fee of 6% on all sales, as well as an additional 3% to be applied toward national marketing efforts.
How much does a Subway owner make a year?
The average salary for an Owner is $121,945 per year in United States, which is 35% higher than the average Subway salary of $90,272 per year for this job.
What food makes the most profit?
Profitable Food Business IdeasHoney production – 30% average profit margin.Coffee shop – 25% average profit margin.Popcorn business – 22% average profit margin.Custom cakes – 19% average profit margin.Chicken poultry -17% average profit margin.Pizza – 15% average profit margin.Fruit juice – 14% average profit margin.More items...
What is the #1 fast food?
McDonald's is still the most popular fast food brand in America today—with $46 billion in systemwide sales last year.
How Much Does owning a Taco Bell make?
The average per unit revenue for a Taco Bell is $1.5 million in annual sales.
How much does it cost to be a Taco Bell franchise owner?
Franchising fees for Taco Bell range between $25,000 and $50,000, which also varies depending on the type of Taco Bell unit you open. Taco Bell requires potential franchisees to have a net worth minimum of around $1.5 million in assets and cash liquidity around $750,000.
Are Taco Bell's profitable?
Based on the estimated sales provided by Taco Bell's data, at an average of a 15% profit margin, it will take around 12 years to recoup your investment. This is longer than other franchise opportunities.
Is a taco business profitable?
How much profit can a taqueria business make? Unlike the vast majority of businesses, many taco stand business owners report a profit in the first year, with between $112,000 – $156,000 by the third year.
How much does it cost to own a fast food franchise?
Most franchises require that you have a minimum net worth of at least $1 million, and there are plenty of upfront costs on top of that.
How much does a DQ franchise cost?
DQ has a franchise fee of $35,000 and a liquid capital requirement of $400,000, according to their website. They also prefer that applicants have prior restaurant management experience, but if you have the cash and don’t have the experience, you can partner with or hire someone who does to help you run things.
How much does it cost to own a taco bell?
It’s not cheap to become a Taco Bell owner. A publicist for the company tells Delish that the total investment to get things moving ranges from about $1.2 million to $2.85 million. If you want to take over an existing restaurant, you could shell out anywhere from $175,000 to $1,800,000 or more—and that doesn’t include the cost of the actual real estate. Like Chick-fil-A, franchisees need to devote themselves to overseeing the day-to-day operations of the restaurant.
How do I get a Chick Fil A franchise?
Once you’re in, you have to go through an “extensive, multi-week training program,” as well as development courses. Just a heads up: Chick-fil-A is super selective about franchises. "We do not offer franchise opportunities to all qualified candidates," the website says. "Rather, we select the best candidates for a limited number of franchise opportunities."
How much is Burger King worth?
Burger King. Net worth requirement: $3 million, with $1 million in liquid assets . There are six major steps to becoming a BK operator, and the whole thing's quite a process. You start with a pre-qualification questionnaire, before moving on to due diligence and background checks.
How much is the initial down payment for a subway?
Initial down payment: $139,500 to $341,000. Net worth requirement: none. The franchise fee for Subway is $15,000, a company spokesperson tells Delish. Once you get off the ground, you’ll pay 12.5 percent of your sales every week toward royalties and advertising, according to the company website.
How long does it take for a subway to open?
It can take time to get off the ground, though. Subway says it can take anywhere from two months to a year to open after you sign your franchise agreement.
How much does it cost to start a restaurant?
Startup costs: $1.2 million to $2.2 million. This total is determined by the geography and size of the restaurant, the selection of kitchen equipment, signage, style of decor, and landscaping. The sum includes construction and equipment expenses.
How much does it cost to start a Burger King?
Startup costs: $1.9 million to $3.3 million for a free-standing Burger King.
How much does Wendy's charge for advertising?
Ongoing fees: Wendy's charges franchisees ongoing fees for local and national advertising (4% of gross sales) and royalties (3.5% of gross sales).
How much is the Taco Bell royalty?
Ongoing fees: Taco Bell charges a royalty fee equal to 5.5% of gross sales and a marketing fee equal to 4.25% of gross sales.
How much does it cost to start a taco bell?
Startup costs: $1.2 million to $2.9 million. This includes the franchise fee and other startup expenses such as real estate and construction. The costs are slightly lower — between $175,000 and $1.8 million — for franchisees to acquire an existing Taco Bell restaurant.
How much does McDonald's charge?
Ongoing fees: McDonald's charges a monthly service fee equal to 4% of gross sales. Franchisees must also pay rent to the company, which is a percentage of monthly sales.
How much does it cost to open a KFC?
Startup costs: $1.4 million to $2.8 million for a "traditional" KFC location.*
How much does a franchise cost?
In addition, franchisees pay an initial franchise fee that usually ranges anywhere from $10,000 to $50,000; ongoing service or royalty fees that usually range between 3-8% of gross monthly sales; and advertising fees.
How much money do you need to be a franchisee?
Minimum net worth requirements can range from less than $100,000 to $1.5 million or more . Would-be entrepreneurs who do not meet those minimums are not even considered.
How much is the initial down payment for a restaurant?
Initial down payment: 25% of the total cost, with additional financing spanning more more than seven years (40% for new restaurants)
Is subway a franchise?
One of the least expensive franchises to start, Subway offers an equipment leasing program and leverages its relationship with lenders to help franchisees secure financing.
Do fast food franchises require a millionaire?
Fast food franchises can be big money makers, but they require significant upfront and ongoing expenses to operate. Some companies require you to be a millionaire just to get in the door, although others are less stringent.
Is Wendy's a franchise?
Wendy’s fees are some of the highest among leading fast food chains, and the vetting process for franchisees is stringent. The company is interested in potential franchisees who plan to open multiple stores, not just one, either through acquiring existing restaurants or building new ones. The company prefers entrepreneurs with prior restaurant experience.