How Much To Start A Fast Food Franchise?

Fast food franchising is a very profitable business anyone would want to venture into. It gives you the advantage of using an existing successful brand name, personality, and model and saves you the hassle of building from scratch. However, this does not take away the cost that comes with owning a fast food franchise.

Suppose you want to start a fast food franchise and you want to learn about the costs of getting a fast food franchise, then keep reading. In this post, we will talk about the cost of starting different fast food franchises across the country. 

What Would It Cost To Start A Fast Food Franchise?

Start-up and ongoing costs of some famous fast food franchises have been compiled below for you to have an idea of the fees involved in starting and owning a fast food franchise.

KFC

The startup cost for franchising with Kentucky Fried Chicken(KFC) is around $1,500,000 to $3,000,000. You will need to have $800,000 in liquid assets and at least $2,000,000 net worth. The franchise fee is $45,000, and ongoing fees involve 5% advertising and 5% royalty fees.

Mcdonald’s

The startup cost for Mcdonald’s is within $1,200,000 to $2,500,000, depending on the location and size of the restaurant you want. The minimum net worth and liquid assets required is $1,000,000. The franchising fee is $45,000, and ongoing fees are 4% to 10% of gross fees. They also require you to pay rent to the company from your percentage of monthly sales.

Pizza Hut

With a budget of $1,200,000 to $3,000,000, you can start up a Pizza Hut franchise. You should have a net worth of at least $900,000 and liquid assets of $350,000. The franchise fee for Pizza Hut is $25,000, and ongoing fees involve 6% royalty and 2.5 to 3% advertising fees.

Wendy’s

You can start up with this fast food franchise once you have $2,000,000 to $4,000,000 available. You are required to have a net worth of $5,000,000 and a liquid asset of $2,000,000. The franchise fee is $50,000 with 4% advertising and 3.5% royalty fees as ongoing fees.

Subway

With how expensive opening a fast food franchise can be, this is one of the cheapest to open. If you have a startup amount of $116,000 to $270,000, you can franchise with Subway. The minimum net worth and liquid asset required here is $85,000. The franchise fee is $15,000, and ongoing fees are 5% advertising and 8% royalty fees.  

Burger King

For a free-standing Burger King franchise, you’ll need $2,000,000 to $3,400,000 for startup costs with a net worth of $2,000,000 and $550,000 in liquid assets. The franchise fee is $50,000 for a 20-year term, and ongoing fees involve 5% royalty and 4% advertising fees.

Taco Bell

Starting-up costs for Taco Bell are between $1,223,000 to $3,000,000. The minimum net worth and liquid asset requirements you need are $1,500,000 and $755,000, respectively. The franchise fee is $45,000 with ongoing fees of 4.5% advertising and 5% royalty fees.

Dunkin’ Donuts

Dunkin’ Donuts startup costs range from $230,000 to $1,700,000. With a net worth of $500,000 and liquid assets of $250,000, you can consider this fast food franchise. The franchising fee is between $40,000 to $90,000, depending on location and market size. At the same time, the ongoing fees involve 2.5-6% royalty fees and 5.5% advertising fees.

Chick-Fil-A

This fast food franchise is also amongst the cheapest to open. There are no startup costs to start this franchise. They require absolutely zero amount of net worth and liquid assets. The franchise fee for Chick-Fil-A is $10,000, while the ongoing fees involved are 50% of pretax profit left and a 15% charge that’s equal to sales.  

1. Domino’s Pizza

This fast food franchise is divided into two categories. You can either start as an internal or as an external franchisee.  An internal franchisee is someone who has worked with domino’s pizza as a general manager for at least a year, while an external franchisee has not had any working experience with them but has at least some management experience.

Starting as an internal franchisee will require no startup costs, no net worth, and no liquid assets. The franchise fee as an internal franchisee is $0 to $25,000, depending on which social segment you belong to. The franchise fee for an external franchisee is $25,000 with no net worth or liquid assets.

This fast food franchise offers a complete training program that gives you every kind of information you need to know if you are to franchise with them.

Owning a fast food franchise has a lot of benefits as long as you can finance the costs. You should be fully geared and prepared for whatever it would take to own one so as not to get stuck while trying to set up one. If you’re unsure about which franchise to invest with, you can always consult business and financial experts for professional advice.