Starting a fast food franchise can be a lucrative venture, but the initial investment can be a significant barrier for many aspiring entrepreneurs. The good news is that there are several affordable franchise options available. This article explores some of the cheapest fast food franchises to open, focusing on their financial requirements and unique selling points, to help you make an informed decision.
1. Subway
Subway is one of the most recognizable fast-food chains globally, specializing in customizable sandwiches, wraps, and salads. Its popularity stems from its wide range of fresh ingredients and the ability for customers to create their own meals.
Financial Requirements:
- Initial Investment: $238,623 – $536,745
- Initial Franchise Fee: $15,000
- Royalty Fees: 8% of weekly gross sales
- Advertising Fee: 4.5% of weekly gross sales
Subway’s relatively low initial franchise fee makes it an attractive option for those looking to enter the fast-food industry without a massive upfront investment.
2. Taco Bell
Taco Bell is a fast-food chain that is famous for its Mexican-inspired menu, featuring tacos, burritos, and nachos. Established in 1962, Taco Bell has grown to become a global brand known for its innovative menu items and affordable prices.
Financial Requirements:
- Initial Franchise Fee: $25,000 – $45,000
- Total Initial Investment: $610,750 – $3,980,200
- Royalty Fee: 5.5% – 6% of gross sales
Alt: Taco Bell restaurant exterior showcasing its affordable fast-food franchise opportunity.
3. Baskin-Robbins
Baskin-Robbins is an iconic ice cream chain, known for its extensive selection of flavors. With over 1,300 varieties worldwide, it provides a wide array of ice cream treats and desserts.
Financial Requirements:
- Initial Investment: $307,440 – $657,860
- Initial Franchise Fee: $25,000
- Royalty Fee: 5.9% of gross sales
- Advertising Contribution: 5%
Baskin-Robbins offers a sweet opportunity for those passionate about ice cream and looking for a franchise with a strong brand presence.
4. Little Caesars
Little Caesars is a pizza chain known for its affordability and “Hot-N-Ready” concept. This model allows customers to quickly grab freshly prepared pizzas without waiting, enhancing convenience.
Financial Requirements:
- Estimated Total Investment: $393,000 – $1,718,700
- Net Worth Requirement: $400,000
- Liquid Asset Requirement: $200,000
- Franchise Royalty Fee: 6%
- Marketing Fee: 5%
- Franchise Fee: $20,000 (first restaurant), $15,000 (additional locations)
Alt: Little Caesars storefront showcasing its readily available and affordable pizza offerings.
5. Chester’s Chicken
Chester’s Chicken specializes in fried chicken and comfort food. Known for its flavorful recipes and crispy chicken, Chester’s Chicken has a loyal customer base. It operates in diverse locations like convenience stores, truck stops, and supermarkets, offering versatility for franchise owners.
Financial Requirements:
- Total Investment: $27,500 – $296,500
- Advertising Royalty Fee: $200 per quarter
Chester’s Chicken is a very affordable option, especially suitable for integrating into existing businesses.
6. Firehouse Subs
Firehouse Subs is a fast-casual restaurant chain known for its flavorful sub sandwiches and commitment to community service. Founded by firefighters, the brand is dedicated to supporting first responders through its Public Safety Foundation.
Financial Requirements:
- Minimum Investment: $150,000
- Net Worth Requirement: $300,000
- Estimated Initial Investment: $343,245 – $1,224,200
- Initial Franchise Fee: $20,000
- Royalty Fee: 6% of gross sales
Alt: Firehouse Subs restaurant exterior highlighting its connection to firefighters and community support.
7. Scooter’s Coffee
Scooter’s Coffee is a drive-thru coffeehouse chain known for its specialty coffee drinks and smoothies. With a focus on convenience and quality, Scooter’s Coffee has rapidly expanded.
Financial Requirements:
- Initial Investment: $894,500 – $1,393,000
- Franchise Fee: $40,000
- Initial Opening Support Fee: $15,000
- Royalty: 6%
- Advertising Fee: 2%
- Minimum Net Worth: $500,000
- Minimum Liquid Capital: $250,000
8. Papa John’s
Papa John’s is a pizza delivery and takeout chain known for its fresh ingredients and “Better Ingredients, Better Pizza” philosophy.
Financial requirements
- Initial Investment Range: $272,915 – $989,415
- Royalty Fee: 5% of gross sales
- Ad Royalty Fee: 6%
- Initial Franchise Fee: $25,000
Alt: Papa John’s storefront showcasing its commitment to quality ingredients and better pizza.
9. Cold Stone Creamery
Cold Stone Creamery is an ice cream parlor chain known for its unique “mix-in” concept, allowing customers to customize their ice cream.
Financial requirements
- Estimated Initial Investment: $57,200 – $627,775
- Royalty Fee and Surcharge: 6% of gross sales plus a maximum surcharge of $10 per week
- Advertising Fees: 3% of weekly gross sales
- Initial Franchise Fee: $27,000
10. Wingstop
Wingstop is a fast-casual restaurant chain specializing in freshly made, hand-sauced chicken wings.
Financial requirements
- Initial Investment: $259,400 – $912,100
- Royalty Fee: 6% of gross monthly sales
- Ad Fund: 5.3%
- Franchise Fee: $20,000
Alt: Wingstop restaurant interior, highlighting its variety of wing flavors and modern dining experience.
11. Mucho Burrito
Mucho Burrito is a fast-casual Mexican franchise that offers customizable burritos, tacos, and bowls.
Financial requirements
- Overall Initial Investment: $282,500 – $649,500
- Franchise Fee: $25,000
- Royalty Fees: 6%
- Marketing Fee: 3%
12. Quizno’s
Quiznos is a sandwich chain famous for its toasted submarine sandwiches, soups, and salads.
Financial requirements
- Estimated Initial Investment: $458,100 – $1,432,000
- Franchise & Support Fee: $30,000
- Royalty: 1% (limited time, normally 5%)
Alt: Close-up of a toasted Quiznos submarine sandwich, emphasizing its unique flavor and quality ingredients.
13. Domino’s Pizza
Domino’s Pizza is a globally recognized pizza delivery and takeout chain.
Financial requirements
- Estimated Initial Investment: $107,450 – $682,500
- Initial Franchise Fee: $25,000
- Ongoing Royalty Fee: 5%
- Ad Royalty Fee: 3%
14. Dickey’s Barbecue Pit
Dickey’s Barbecue Pit is a barbecue restaurant chain known for its slow-smoked meats and savory sides.
Financial requirements
- Initial Franchise Cost: $30,000 – $50,000
- Royalty Fee: 6% of net sales
- Marketing Fee: Up to 4% of net sales
- Minimum Liquid Capital: $100,000
- Minimum Net Worth: $450,000
- Franchise Investment: $220,105 to $618,589
Alt: Dickey’s Barbecue Pit exterior, showcasing its authentic barbecue offerings and family-friendly atmosphere.
15. Tropical Smoothie Cafe
Tropical Smoothie Cafe specializes in smoothies, sandwiches, wraps, and bowls with a tropical twist.
Financial requirements
- Estimated Initial Investment: $300,000 – $720,500
- Royalty Fee: 6% of gross sales
- National Marketing Contribution: 5-6%
- Initial Franchise Fee: $35,000
- Net Worth Requirement: $350,000
16. Sweetberry Bowls
Sweetberry Bowls specializes in customizable acai bowls, poke bowls, salads, and wraps.
Financial requirements
- Initial Investment: $123,700 – $260,000
- Initial Franchise Fee: $35,000
- Ongoing Royalty Fees: 6%
- Marketing Fee: 2%
Starting a fast-food franchise doesn’t have to break the bank. Options like Subway, Chester’s Chicken, and Sweetberry Bowls offer lower initial investments, making them accessible for entrepreneurs with limited capital. By carefully considering the financial requirements and unique aspects of each franchise, you can find the perfect fit for your entrepreneurial journey. Remember to conduct thorough research and due diligence before making any investment decisions.
