What Does A Fast Food Franchise Cost To Buy And Operate? | Be The Boss

What Does A Fast Food Franchise Cost To Buy And Operate?

Rob Lancit


Jul 03, 2020

The fast food business, perhaps more than any other, exemplifies the franchise model, at least in the United States. Fast food franchises have proven repeatedly to be profitable and stable. But how much does a fast food franchise cost?

Cost is top of mind for anybody when they are looking at purchasing a franchise. And many people are considering purchasing a fast food franchise. So, the natural question is: how much does a fast food franchise cost?

The cost of a franchise is not always the most important factor. There are some franchises that cost quite a bit to buy and startup that reliably deliver impressively high revenue figures. And then there are many franchises that seem suspiciously cheap to buy and startup that can offer remarkable returns on investment (ROIs).

Having said all that, a great franchise is not great for you if you can’t afford it. Many financial institutions and sometimes even the franchisors themselves offer financing for qualified franchisees. But not every potential franchisee is comfortable taking out large business loans, and that’s OK, too. When it comes down to it, you need to know what a fast food franchise is going to cost you. And to know that, you must make sure that the franchisor from whom you are considering purchasing a fast food franchise has clearly laid out costs and qualifications criteria.

When evaluating the cost of a fast food franchise, keep in mind that franchising fees and startup costs are two different things.

Some franchises charge low franchising fees to purchase their franchise, but the costs associated with getting one of their fast food franchises up and running is considerably high. Other franchises come with relatively low startup costs and comparatively high franchising fees. Make sure that you get a detailed breakdown of all the costs you can expect to incur if you purchase a fast food franchise from a given franchisor.

So, when it comes down to it, how much the does a fast food franchise cost? The answer is, of course, it varies. Different franchises charge different fees and different types of fast food require different equipment. Ultimately, it’s rare to see a fast food franchise that costs under $100,000; maybe something minimal like a smoothie or dessert franchise might. On the higher end, some of the more expensive fast food franchises cost up to $500,000, mostly because of the equipment involved. But again, the initial costs are not as important as the potential ROI.

Be The Boss

If you’re interested in buying a fast food franchise or if you would just like to learn a little bit more about the fast food franchises available to you and their respective costs, please contact us.