Franchise News
What Margins Are Typical for a Restaurant Franchise?
Franchise owners in the restaurant industry earn an average of $82,000 per year, per unit.
A restaurant franchise owner’s earnings potential will depend largely on the brand, but on average, restaurant franchise owners earn $82,000 per year, compared to $24,000 to $155,000 for a non-franchise restaurant owner.
Startup costs, however, can range anywhere between $100,000 to millions of dollars, so it may take time for restaurant franchise owners to be profitable.
A Chick-Fil-A franchise, for example, generates $4.1 million on average annually with an initial investment of $10,000, while 10% of MOOYAH Burgers, Fries & Shakes Franchise Owners average $1,346,744 with a total investment cost of $403,750–$639,100.
Prospective franchisees are advised to check out a franchisor’s Item 19, the section of its franchise disclosure document (FDD) that outlines the brand’s financial performance. The Item 19 usually includes both gross and net numbers so franchisees have a more realistic idea of the brand’s potential.
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