How Much Does It Cost to Open a Fast Food Franchise in the United States?
How Much Does It Cost to Open a Fast Food Franchise in the United States?
By
Renee Bailey | March 12, 2025
Blurred image of People standing, waiting and queuing for order some food and make payment in Fast food Store or coffee shop cafe and restaurant interior for background. vintage tone and light effect
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Below are the initial investment costs for one location of 10 popular fast food franchises. The ranges given cover many different sizes of unit types. The information was compiled from the respective franchise disclosure documents (FDDs) of each franchise, except for the liquid cash and net worth requirements, which were compiled from the company's franchise website or Entrepreneur. The FDDs used were all dated 2025.
Keep in mind some given investment range estimates don’t include real estate, or land purchase, costs because of their variability from area to area. You can find more detail on franchise investment costs by clicking the franchise name.
Estimated Initial Franchise Investment Range: $644,950 - $2,451,600 (excludes real estate purchase or lease)
Initial Franchise Fee: $6,250 - $37,500
Liquid Cash Requirement: $500,000
Net Worth Requirement: $1,000,000
Royalty Rate: 4% of total gross sales for traditional restaurants; 6.2% for non-traditional restaurants.
Advertising Rate: A percentage of monthly gross sales, current minimum is 4.2%. Fee combines the advertising/marketing service fee, local advertising, and cooperative advertising (if applicable). Included in the royalty for non-traditional restaurants.
* The liquid cash requirement refers to the amount of money a franchisor requires a franchisee be able to access quickly (oftentimes within 10 days). Most often, the requirement includes an estimate for emergencies, setbacks, and accounts for regular living expenses until the franchise unit begins turning a profit large enough for the franchisee to garner an adequate take-home wage.
** The advertising rates given are for promotion on the national level. Additional local expenditures may also apply, if not denoted.
***The estimated initial investment range given for these franchises (KFC, Pizza Hut, Taco Bell) covers multiple variations of new “traditional” restaurant types. There is a different set of costs associated for the “non-traditional” or "express" restaurant types of these franchises.
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