In this article, we will talk about the 5 cheapest restaurant franchises with low total investment. If you want to read our detailed analysis on the broader expansion of food industry and the subset of fast food industry, you can head straight to the 15 Cheapest Restaurant Franchises With Low Total Investment.
5. Firehouse Subs
Initial Franchise Fee: $20,000
Royalty Charges: 6%
The initial single-unit franchise fee for Firehouse Subs is $20,000. The average total cost for a traditional Firehouse Subs restaurant is $412,731.
4. Subway
Initial Franchise Fee: $15,000
Royalty Charges: 8%
Subway, a renowned global brand, operates in over 100 countries and boasts a network of over 37,000 chains worldwide. It has approximately 21,000 restaurants located within the US alone. The process of owning a subway franchise begins with an initial franchise fee of $15,000. We should note that Subway offers a discount on its franchise fee for qualified US veterans. In total, setting up a franchise can cost between $105,800 and $393,600. Compared to other similar businesses, its startup costs are quite affordable, starting at around $200,000 and going up to $500,000.
3. Little Caesars
Initial Franchise Fee: $15,000
Royalty Charges: 6%
Little Caesars is among the largest pizza chains in the world. Founded in 1959, the company has a strong brand presence and a popular menu. It has a global presence in 27 countries and territories. In recent years, it has been on an international expansion campaign, opening restaurants across Europe, the Middle East, Asia Pacific, Latin America, and Canada. With ambitious plans on the horizon, the franchise is set to further strengthen its presence in Europe, particularly in the UK.
To open a Little Caesars franchise, you’ll need an estimated total investment starting at $379,000. Additionally, you must meet a net worth requirement of $350,000 and have liquid assets of at least $150,000. Little Caesars offers continuous training and support to qualified franchisees, enabling them to effectively adhere to the brand’s established system.
2. Gyroville
Initial Franchise Fee: $9,995
Royalty Charges: 6%
Gyroville, a prominent fast-food chain, has established its presence across 9 strategic locations within the United States and is currently on the lookout for enthusiastic individuals who share their vision to join their growing franchise family. However, the total upfront investment required to set up your own franchise falls within the range of $271,845 to $346,995.
1. Chester’s Chicken
Initial Franchise Fee: $3,500
Royalty Charges: 4%
Chester’s Chicken is a quick-service restaurant concept with over 1,200 active locations in the continental U.S. and Canada. The franchise has a rich history, spanning over 70 years. Compared to other franchise options, the initial costs are quite reasonable.
Chester’s Chicken offers continuous support to franchisees, guiding them from pre-opening to operations. They provide training, assistance, and support services to minimize waste, optimize margins, and boost sales.
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