Fast Food Franchise Costs in the USA (2025 Guide)

Fast Food Franchise Costs in the USA (2025 Guide)

Franchising has long been one of the most popular paths to business ownership in America. And within franchising, fast food remains king. The industry contributes over $400 billion to the U.S. economy annually, with thousands of entrepreneurs investing in established restaurant brands like McDonald’s, Taco Bell, Chick-fil-A, and Wendy’s.

But how much does it actually cost to open a fast food franchise in the United States in 2025? What factors drive up investment costs? And what are the top-performing franchises worth your consideration?

We’ll explore:

• A breakdown of fast food franchise costs (fees, buildout, equipment, etc.)
• The top U.S. franchises and what they charge
• ROI expectations and average profit margins
• Financing options and cost-saving tips

The Cost of Starting a Fast Food Franchise in 2025

According to the International Franchise Association (IFA), the average startup cost for a fast food franchise in the U.S. ranges from $250,000 to $2.2 million.

Cost Component	Typical Range
Franchise Fee	$10,000 – $50,000
Real Estate/Leasehold	$50,000 – $500,000
Equipment & Buildout	$150,000 – $700,000
Inventory	$10,000 – $50,000
Marketing & Grand Opening	$5,000 – $25,000
Training & Travel	$3,000 – $20,000
Working Capital	$25,000 – $100,000
TOTAL	$250,000 – $2,200,000

These figures vary widely based on:

• Brand popularity and market presence
• Real estate costs in your region
• Drive-thru or dine-in format
• Franchise support level
• Urban vs. suburban setting

Top Fast Food Franchises and Their Costs (2025 Edition)

1. McDonald’s

• Franchise Fee: $45,000
• Total Investment: $1.3M – $2.4M
• Net Worth Requirement: $500,000 minimum
• Liquid Capital: $500,000
• Royalty Fee: 4% of monthly sales + rent (8–15%)

2. Chick-fil-A

• Franchise Fee: $10,000
• Total Investment: $343,000 – $2M (paid by HQ)
• Unique Model: Chick-fil-A retains ownership of assets
• Profit Split: 15% gross + 50% net profits to HQ
• Operator Income: $200K–$300K/year average

3. Taco Bell

• Franchise Fee: $45,000
• Total Investment: $575,000 – $3.3M
• Net Worth: $1.5M
• Liquid Capital: $750,000
• Royalty Fee: 5.5% of gross sales

4. Wendy’s

• Franchise Fee: $50,000
• Total Investment: $1.8M – $3.5M
• Liquid Capital: $2M
• Royalty Fee: 4% of net sales + 4% marketing

5. Subway

• Franchise Fee: $15,000
• Total Investment: $250,000 – $500,000
• Royalty Fee: 8% + 4.5% marketing
• Pro: Lower cost of entry

6. KFC (Kentucky Fried Chicken)

• Franchise Fee: $45,000
• Total Investment: $1.4M – $2.7M
• Royalty Fee: 5% of gross sales + 5% marketing

7. Five Guys

• Franchise Fee: $25,000
• Total Investment: $350,000 – $750,000
• Net Worth: $500,000+
• Royalty Fee: 6% of gross sales

Fast Food Franchise Statistics (2025)

According to IBISWorld and the U.S. Census Bureau:

• There are over 230,000 quick service restaurants in the U.S.
• The industry grew 4.5% annually over the last 5 years
• Fast food accounts foThe Cost of Starting a Fast Food Franchise in 2025According to the International Franchise Association (IFA), the average startup cost for a fast food franchise in the U.S. ranges from $250,000 to $2.2 million.Cost ComponentTypical RangeFranchise Fee$10,000 – $50,000Real Estate/Leasehold$50,000 – $500,000Equipment & Buildout$150,000 – $700,000Inventory$10,000 – $50,000Marketing & Grand Opening$5,000 – $25,000Training & Travel$3,000 – $20,000Working Capital$25,000 – $100,000TOTAL$250,000 – $2,200,000These figures vary widely based on:
  • Brand popularity and market presence
  • Real estate costs in your region
  • Drive-thru or dine-in format
  • Franchise support level
  • Urban vs. suburban setting
  Top Fast Food Franchises and Their Costs (2025 Edition)1. McDonald’s
  • Franchise Fee: $45,000
  • Total Investment: $1.3M – $2.4M
  • Net Worth Requirement: $500,000 minimum
  • Liquid Capital: $500,000
  • Royalty Fee: 4% of monthly sales + rent (8–15%)
  2. Chick-fil-A
  • Franchise Fee: $10,000
  • Total Investment: $343,000 – $2M (paid by HQ)
  • Unique Model: Chick-fil-A retains ownership of assets
  • Profit Split: 15% gross + 50% net profits to HQ
  • Operator Income: $200K–$300K/year average
  3. Taco Bell
  • Franchise Fee: $45,000
  • Total Investment: $575,000 – $3.3M
  • Net Worth: $1.5M
  • Liquid Capital: $750,000
  • Royalty Fee: 5.5% of gross sales
  4. Wendy’s
  • Franchise Fee: $50,000
  • Total Investment: $1.8M – $3.5M
  • Liquid Capital: $2M
  • Royalty Fee: 4% of net sales + 4% marketing
  5. Subway
  • Franchise Fee: $15,000
  • Total Investment: $250,000 – $500,000
  • Royalty Fee: 8% + 4.5% marketing
  • Pro: Lower cost of entry
  6. KFC (Kentucky Fried Chicken)
  • Franchise Fee: $45,000
  • Total Investment: $1.4M – $2.7M
  • Royalty Fee: 5% of gross sales + 5% marketing
  7. Five Guys
  • Franchise Fee: $25,000
  • Total Investment: $350,000 – $750,000
  • Net Worth: $500,000+
  • Royalty Fee: 6% of gross sales
  r 36% of total U.S. restaurant sales
• The average fast food franchise employs 18 people and has revenue of $1.2 million/year
• The average profit margin is between 10%–15%

Factors That Influence Franchise Costs

1. Location

Urban locations command higher rent and renovation costs.

2. Franchise Model

Some models (like Chick-fil-A) fund infrastructure but require revenue share.

3. Size and Layout

Kiosks or mall-based locations cost less than drive-thru units.

4. Brand Equity

More recognized brands charge higher fees—but often offer more support and foot traffic.

5. Franchisee Experience

First-time operators may face higher capital requirements than multi-unit veterans.

Financing Options for Franchisees

Starting a fast food franchise doesn’t always require having millions upfront.

1. SBA Loans (Small Business Administration)

• Offers up to $5M at favorable rates
• Requires strong credit and business plan

2. Franchisor Financing

• Some brands help finance part of the startup (especially equipment)

3. Third-Party Franchise Lenders

• Firms like BoeFly, FranFund, and ApplePie Capital specialize in franchise finance

4. Investors or Partnerships

• Co-ownership with family, friends, or business partners to pool capital

Expected ROI and Break-Even Timelines

The average break-even point for fast food franchises in the U.S. is 2.5 to 4.5 years, depending on brand and location.

Brand	Avg Annual Revenue	Est. Owner Profit	Payback Period
McDonald’s	$3.2M	$150K–$300K	3–5 years
Chick-fil-A	$8.5M	$200K–$350K	1–2 years
Taco Bell	$1.6M	$90K–$150K	3–5 years
Subway	$420K	$40K–$80K	3–6 years

Tips for Reducing Franchise Startup Costs

• Lease equipment instead of buying upfront
• Opt for lower-cost markets with growth potential
• Choose a smaller, kiosk-style layout
• Look for turnkey or resale franchise opportunities
• Partner with local developers or co-investors

Pros and Cons of Investing in a Fast Food Franchise

Pros:

• Proven systems and support
• Built-in brand recognition
• Easier access to funding
• Training and operations guidance

Cons:

• High upfront costs
• Ongoing royalty and marketing fees
• Limited creative control
• Long working hours and hiring challenges

Conclusion: Is a Fast Food Franchise Worth It?

In 2025, opening a fast food franchise in the U.S. is still one of the most powerful business investments—but it requires serious planning, capital, and commitment.

While startup costs can be high—especially for top-tier brands—many operators see long-term success and scalability through multi-unit ownership.

Whether you choose a low-cost brand like Subway or aim for a premium outlet like McDonald’s or Chick-fil-A, the key is to:

• Understand total investment needs
• Select the right market
• Work with advisors or consultants
• Build a strong team and follow brand systems

With the right preparation, your fast food franchise could be your next great business milestone.

Ready to get started? Consider reaching out to franchisors or consultants to review your eligibility, capital readiness, and brand fit in today’s franchise ecosystem.