What Is the Cheapest Famous Fast Food Franchise To Open?

In fast-food franchising, the investment range is just as wide as the types of cuisines offered. Some brands can cost upward of $7 million, while others can be as low as $350,000.

But with just a $10,000 franchise fee, one brand stands out as the cheapest fast food franchise: Chick-fil-A. Sounds too good to be true? The catch is that it's extremely difficult to pass the selection process — harder than getting into Harvard to be exact. 

Opening a Chick-fil-A franchise typically costs between $186,495 and $2.7 million. Instead of franchisees being responsible for those costs, Chick-fil-A covers all opening expenses, leaving franchisees with just a $10,000 fee. Unlike many other major fast food chains, Chick-fil-A also has no requirements for minimum net worth or liquid assets. In comparison, McDonald’s requires a $500,000 net worth. 

However, Chick-fil-A charges a 15% royalty and takes 50% of all profits for franchisees, which is a much steeper take than other quick-service brands. For example, Wendy’s charges franchisees a 4%-6% royalty, while McDonald’s charges 5%. 

Since Chick-fil-A is less attainable than most major fast food chains, here are a few examples of other brands that are on the cheaper side to operate. 

Wendy’s

Wendy’s has a surprisingly low investment range for being such a major brand, starting at $321,000. However, investment fees can go up to $4.6 million on the high end, depending on a variety of factors. Franchises must also have a minimum net worth of at least $1 million and minimum liquid assets of at least $500,000. The standard franchise fee in the U.S. and Canada is $50,000, and royalty fees range from 4% to 6%. 

Jersey Mike's Subs

Jersey Mike’s is more of a quick-service restaurant than fast food, but it's hard not to mention it with opportunities starting as low as $144,668 and going up to $786,233. The brand has a net worth requirement of $300,000 and a cash requirement of $100,000. Its royalty and ad royalty fees are 6.5% and 5%, respectively. The initial investment may vary, depending on the condition of the premises, the amount of construction performed by the landlord, geographic areas and your capabilities.

Popeyes

Popeyes franchisees can invest as little as $384,000 and as much as $3.7 million. Costs vary based on location, configuration, size of store, and the amount and terms of financing. The franchise fee is a standard $50,000, while the brand requires a $1 million net worth and $500,000 in cash. 

Although fast food is not one of the cheaper categories overall in franchising, it's clear that there are more affordable options within the industry. As aspiring franchisees explore their options, it's crucial to consider not only the initial investment but also the associated fees, net worth requirements, and potential profitability to make an informed decision tailored to their goals and resources.

If you're interested in launching your own fast-food empire — or expanding the one you already have, 1851 can help! The 1851 Growth Club will guide you through the buying process with honesty and integrity. Rather than hiding fee structures, ours is wide open. Reach out today to start building!