Initial Franchise Investment for Top 7 US QSR Food Brands

Initial Franchise Investment for Top 7 US QSR Food Brands
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In Franchising, a franchisee is contractually permitted to use the franchisor’s ideas and business model. In 2019, there were 773,603 franchise businesses in the United States. The industry contributed $787.5B. To make this possible, 8.43M million people worked for a franchise business.

Reports inform that the United States’ franchise industry works with small businesses interested in established brands. Although the franchise industry is most commonly known for its fast-food sector, 30 percent of franchisees are interested in the fast-food franchise

So, if you are curious about the initial franchise investment in the food industry, you have tentative cost references from US’s top 7 quick services (QSR) food brands.

Initial Franchise Investment in the Food Industry

McDonald’s Franchise Startup Cost

McDonald’s initial franchise investments are anticipated to total $2,306,500 in 2020, with signs, seating, and decor accounting for most of the cost at $1.55 million. Meanwhile, the QSR chain’s initial franchise fee was $45,000.

Cost for Kentucky Fried Chicken Franchise

 In 2020, the initial investments for fried chicken chain Kentucky Fried Chicken were estimated to total $2,771,550, with real property costs being the most expensive investment at $1.1M. Meanwhile, for permits, licenses, and security deposits, the estimated cost was $100,000.

Burger King Franchise Cost

In 2020, the initial investment in Kentucky Fried Chicken was expected to total $2,771,550, with real estate expenditures accounting for the largest portion of the investment at $1.1 million. An additional $100,000 was charged for permits, licenses, and security deposits.

Subway Initial Franchise Investment 

Subway’s initial franchise investment was anticipated to be $342,400 in 2020, with leasehold renovations being the most expensive at $200,000. Meanwhile, the restaurant chain’s franchise fee was $15,000.

Cost for Domino’s Pizza

In 2020, Domino’s initial fee was estimated to total $582,000, with leasehold renovations accounting for the largest portion of the expenditure at $225,000. The pizza chain’s original charge was $10,000.

Cost for Pizza Hut Franchise

In 2020, Pizza Hut’s initial franchise investment was expected to total $2,063,500, with building and site renovations accounting for the bulk of the investment at $1,575,000. The chain’s initial franchise fee was $25,000.

Initial Franchise Investment for Wendy’s 

In 2020, Wendy’s startup cost was $3,689,350 if the franchisee paid for the land, building, upgrades, equipment, and signage. The application fee for franchising a Wendy’s restaurant was $5000 in 2020.