What is the Cheapest Fast Food Franchise to Open

Opening a restaurant requires a large amount of financial investment. Indeed, the opening cost relies on essential factors like location, food niche, restaurant space, rent cost, food serving equipment cost, and others. On the other hand, if you have a low budget then find a low-cost fast food franchise but what is the cheapest fast food franchise to open? If you want to open a fast food franchise outlet then consult with them, because all the franchises have their business policy.  

However, which steps should you focus on for opening a low cost fast food franchise? A person should focus on opening expenses, running costs, reducing a franchise's upfront costs, franchise support, business compensation, and others. So, before obtaining a license to start a food business, maintain an agreement paper or document as a validation.

What is the Cheapest Fast Food Franchise to Open?

A franchise or franchisor is a person who allows another person or third party to use their fast food brand, logo, recipe, financial support, and get another facility that is called a fast food franchise. In that case, you must adhere to their policy. However, there are some low-budget fast food franchises. Let's see the details, popularity, third-party business policy, financial requirements, and others.

1. Subway

Subway is a well-established multinational fast food company. They have more than 37000 stores in 102 countries and more than 20 thousand are in the United States. Subway franchises offer a diverse menu such as sandwiches, Snacks, Sides & Desserts, beverages, Pizza, and others. So, these large numbers of stores prove how cheap Subway is to open a store. For opening a Subway store in a different location or becoming a franchisor must follow their business rules and financial requirements.

Opening a Subway store requires a small space, and it can be opened at any location like the airport, university, high-traffic areas, and other crowded areas. Subway makes contact for at least 20 years with the third party. In that case, the royalty fee is around 8% and 4.5% is the advertising fee.

Financial Requirements

• Liquid Cash Requirement: Around $150,000 net worth and $100,000 liquid assets to get approval.
• Initial franchise fee: $15,000 for Franchise location
• Franchise ownership estimated cost: Amount ranges from $229,050 - $522,300, depending on building size, configuration, and location

2. Papa John's

Papa John’s is another cheapest and largest fast food chain. Their main item is pizza. It is one of the best fast food franchises to own. Papa John’s is available in around 49 countries and has above 6000 outlets in different countries. Their net income varies by year but their average net income is around $57.932 million. A franchisee must sign an agreement paper to run a business for at least 10 years.

Papa John’s provides training to its franchises, allows them to use their brand image, logo, and food recipes, and teaches their marketing strategy to grab the market and reduce promotional stress. They do charge royalty fees of 5 to 6% of their net sales. 

Papa John's charges a minimum initial franchise restaurant opening cost to use their trademark logo, and images, and get brand promotion privileges. They also charge 4% for national marketing and 5% for business management services of net sales.

Financial Requirements

• Liquid Cash Requirement: Around £18,500 to £100,000
• Initial franchise fee: In the UK initial franchise fee is around £18,500 +VAT
• Franchise opening estimated cost: Around £185,000 and £225,000

3. Baskin-Robbins

Baskin Robbins is the most profitable fast-food franchise to own. It is an American fast food chain that was founded in 1945. It is another renowned inexpensive restaurant franchise or fast food franchise in the world. Baskin Robbins has more than 7800 outlets in 50 countries but over 2261 stores are in the United States. Baskin Robbins has a diverse ice cream menu that attracts people.

However, Baskin Robbins is another cheapest fast food franchise compared to other franchises. Their policy says the franchise must pay a specific percentage of business royalty fees, marketing, and online access costs. In that case, that person will be allowed to open their store and use a logo, branding image, and other facilities.

Financial Requirements

• Liquid Cash Requirement: Around $100,000
• Total required investment to open: Around $350,000 to $420,000

After opening a franchise should pay some additional costs continuously such as

• Royalty fee: 5.9% of gross sales
• Advertising fee: 5% of gross sales.

4. Chester's Chicken

Chester’s Chicken is another cheapest American-based fast food franchise. It was founded in 1952 in America. It is a leading QSR restaurant and provides high-quality small fried chicken. Chester's Chicken is a type of quick-service restaurant that offers an online food ordering system.

They offer franchises in different countries and different locations as well. In that case, people must follow their business policy and agreement requirements as well. Chester’s Chicken will provide training. So, let’s see its franchise financial requirements

Financial Requirements

• Net worth: Around $10,000 to $100,000
• Franchise cost: Around $3,500
• Initial investment range: Around $12,000 to $296,600
• Liquid Cash should be: Around $25,000 to $50,000

5. Little Caesars

Little Caesars is another cheapest fast food franchise to own. It was founded in 1959 in the United States. It is one of the largest pizza chains in the world, and pizza is their major food item. Little Caesars franchise fast food has over 92 franchise stores and 4,173 little stores in the United States. This food franchise is in 22 countries globally and occupies the 3^rd position for pizza selling.

However, if someone wants to be a member of their business then he/she must follow a standard guideline through their paperwork. To obtain a franchise a person must have a reasonable income and be financially capable. So, let’s see what financial requirements a person should focus on.

Financial Requirements

• Initial Franchise Fee: Around $5,000
• Pay franchise Fee: Approximately $20,000 and a 6% royalty
• Required net worth: Around $400,000
• Initial investment range: Approximately $350,000 and $150,000 in liquid assets.

6. Wingstop

Wingstop is an American fast-food chain that was founded in 1994 in Texas. It offers chicken fries, a kind of Kentucky Fried Chicken. It has an extensive menu and flexible franchise policy that made it popular in the world. They have more than 31 years of food serving experience and have more than 2214 global locations.

Wingstop has massive sales growth of around 21% than their previous year. However, their franchise policy is straightforward. If you are financially capable and adhere to their terms and policy then anyone can be their franchise. However, take a look at their financial eligibility.

Financial Requirements

• Wingstop franchise opening total cost can range from $376,300 to $724,000 including the initial franchise fee, development fees, and other costs.
• Depending on the location, the initial franchise fee is around $20,000
• Minimum Cash liquidity is around $600,000
• Pay a 6% royalty fee and 4% for advertising from their weekly sales.

7. Hardee's

Hardees is another cheapest franchise to own. In that case, a franchise must follow its store opening policy and financial requirements as well. However, franchise management is a great way to spread out a business globally. Hardee’s allows a cheap franchise management system to own.

Hardee allows a special offer for their business expansion, if a person wants he/she can open multiple Hardee stores in different locations. But a person must prove financial ability. However, let’s see the financial requirements and get an idea of how much you require to be eligible.

Financial Requirement

• Franchise fees: Around $25,000 per store
• Store development Cost: $10,000
• Franchise must pay: 4% of royalty income
• Initial training cost: Around $20,000 to $60,000

8. Firehouse Subs

Firehouse Subs is a popular fast food franchise in the world. It is a high-profit margin fast food franchise. It offers an extensive and popular food menu that people love more such as burgers, French fries, beverages, snacks, sauces, and other items. There are over 30000 firehouse subs franchise outlets in 120 countries. So, its number of outlets says how popular it is.

So, what financial eligibility is required to own it? If someone has an initial liquid cost of around $150,000 such a person will be eligible to open a firehouse subs outlet. However, let's have some essential financial requirements to own it.

Financial Requirements

• Franchise liquid cost is around: $150,000
• Initial franchise cost: $20000
• Total estimated cost to open: Around $343,245
• A franchise must pay royalty cost: around 6% of total sale

9. Cold Stone Creamery

Cold Stone Creamery is a leading affordable restaurant franchise and ice cream food chain. It is not cheaper than Subway, and Papa John’s. It is a bit cheaper but beneficial for the financially strongest person. This is because it has a strong market value and popularity due to its quality of menus. Cold Stone Creamery's menu includes ice creams, cakes, and drinks but these menus are subdivided into different categories.

However, what would the cost of owning its franchise be? Depending on the country, location, shape of outlets, and franchise cost, it's around $322,675 to $627,775. The cost includes the entire cost of opening Cold Stone Creamery outlets (Without including real estate costs, construction or rent, and initial security deposit).

Financial Requirements

• The cost for small franchise outlets is around: $57,200 to $627,775
• Initial franchise cost: Around $12,000 to $27,000
• The franchise should pay a 6% royalty fee for gross sales.
• The ongoing advertising fee is to be paid around 3% of gross sales.

10. Pizza Hut

Pizza Hut is a popular American multinational fast food chain. It was founded in 1958 for delivering pizza. Nowadays they have over 19000 stores in 105 countries like the UK, Canada, Germany, UAE, Bangladesh, India, and other leading countries. Indeed, pizza delivery is their key focusing step.

It requires a comparatively strong financial ability. By the way, how to own a Pizza Hut franchisee? Financial stability is the keyway to get a franchise. So, what is the financial requirement to own a franchise? Indeed, it relies on country, location, and other essential factors.

Financial Requirements

• A person must have around $700,000 net worth.
• A person must have around $350,000 in liquid assets.
• The initial franchise fee is around $25,000
• Monthly service fees or royalties cost approximately 6% of gross sales
• National advertising charges around 4.75% of gross sales

However, we have referred to the top cheapest fast food franchises to open according to some crucial factors: franchise fast food quality, lowest franchise fee, store opening facility, etc. So, if you are interested in opening a food-serving franchise outlet then choose the best one, meet with financial eligibility then make your decision.

Fast Casual Restaurant Franchises

A casual restaurant is a restaurant where dining is available for lunch, breakfast, dinner, online ordering, and desserts, is also available. A casual dining restaurant is a type of commercial restaurant that includes a variety of food menus. However, there are some renowned casual restaurant food serving chains that offer franchises or allow to open outlets in different locations by maintaining minimum financial requirements.

How much does the franchise cost for a casual restaurant? It depends on a particular franchisor's business policy and location. The average casual dining franchise cost to open is around $200,000 to $1 million. However, let’s see some of the best fast-casual restaurant franchisors.

• Smashburger
• Au Bon Pain
• Blaze Pizza
• Burgerfi
• Five Guys
• Blackjack Pizza
• Shake Shack
• Sweetgreen
• El Pollo Loco
• Moe's Southwest Grill
• Chipotle Mexican Grill
• Firehouse Subs
• Moe's Southwest Grill

Top Mediterranean Fast Casual Restaurant Franchises

Those casual restaurants serve Mediterranean food to customers and provide counter service that is called Mediterranean fast-casual restaurants. Most of the Mediterranean casual restaurants offer dining experiences with extensive food menus and its popularity is pretty much higher. Let’s see some of the top fast-casual restaurant franchises that offer Mediterranean service.

• Yafa Hummus
• Luna Grill
• Greek From Greece
• Halal Bros Grill
• Shawarma King
• Taziki's Mediterranean Cafe
• Roti Modern Mediterranean

Can You Own Multiple Franchises?

Yes, it is possible but requires financial support and eligibility. Owing a multiple franchise is a profitable business. The first requirement of owning a franchise is financial eligibility. A person may have a multiple franchise store if he/she can prove that he/she is financially strong and able to handle then it’s possible.  

How Much Do Fast Food Franchise Owners Make?

Its earnings rely on a few specific factors. In the United States, a person can earn around $80,000 to $90,000 per year. It is an average income, they can earn over that depending on location, franchisor, food menu, etc. So, before getting a franchise, you must search the market trend in your location, and open the best fast food franchise outlet or store.

Final Thought

Most of the globally renowned fast food franchises are from the United States. Franchise fast food stores are a profitable business and there is no pressure to make branding. But it requires financial eligibility and it is the major reason to make a prohibition for most people not to open such a store. For this reason, we have referred here to the best and the cheapest fast food franchise to open. So, choose the best one and assign your name to the franchise food serving business.