Costs to Open Fast Food Franchises, From Chick-Fil-a to Taco Bell

Total startup costs: $644,950 to $2.4 million

Minimum liquid asset requirement: $500,000

Minimum net worth requirement: $1 million

Franchise fee: A $12,500 development fee, a $37,500 license fee

Ongoing fees: Arby’s charges a royalty fee of either 4% or 6.2% of sales, depending on store type, plus an advertising and marketing service fee of 4.2% of sales. 

Average per-unit sales: $1.1 million to $1.6 million, depending on store type, per franchisee disclosure document

Startup costs: $363,400 to $4.7 million

Minimum liquid asset requirement: $500,000

Minimum net worth requirement: $1 million 

Franchise fee: $50,000 for a 20-year franchise agreement

Ongoing fees: Burger King charges a 4.5% royalty fee and a 4.5% advertising fee (based on monthly gross sales).

Average per-unit sales: $1.66 million for traditional stores, $1.32 million for non-traditional stores, per franchisee disclosure document

Startup costs: $426,735 to $2.3 million

Minimum liquid asset requirement: none

Minimum net worth requirement: none

Franchise fee: $10,000 

Ongoing fees: Chick-fil-A franchisees pay a “base operating service fee” of 15% of sales. Chick-fil-A limits its rent charges to 6% of sales. 

However, it’s important to note that Chick-fil-A prohibits most of its franchisees from opening multiple units, which can limit potential profits, and franchisees must devote their full time and attention to operating the business. A Chick-fil-A spokesperson previously told BI it selects “a relatively small number of franchisees to operate multiple units.”

Average per-unit sales: In 2024, most locations averaged about $9.3 million in annual sales.

Startup costs: $1.5 million to $2.5 million

Minimum liquid asset requirement: $400,000

Minimum net worth requirement: $750,000

Franchise fee: $45,000

Ongoing fees: Dairy Queen charges a 4% royalty fee and between 5% to 6% in marketing fees.

Average per-unit sales*: $1.2 million

*2023 figures according to QSR Magazine.

Startup costs: $526,900 to $1.8 million

Minimum liquid asset requirement: $250,000

Minimum net worth requirement: $500,000

Franchise fee: $40,000 to $90,000

Ongoing fees: Dunkin’ Donuts charges 5% of gross sales for advertising fees and a royalty fee of 5.9% of gross sales.

Average per-unit sales: $1.3 million in 2024, per franchisee disclosure document

Startup costs: $1.9 million to $3.8 million for a traditional outlet

Minimum liquid asset requirement: $750,000

Minimum net worth requirement: $1.5 million

Franchise fee: $45,000

Ongoing fees: KFC charges franchisees about 10% of gross revenues (4% to 5% for royalties and 5% for advertising).

Average per-unit sales: $1.3 million, per franchisee disclosure document

Startup costs: $1.5 million and $2.7 million

Minimum liquid asset requirement: $500,000 

Franchise fee: $45,000

Ongoing fees: Base rent depends on when the restaurant opened, along with the acquisition and development costs. The rent for most new McDonald’s restaurants ranges between 10% of total gross sales to 15.75% for new restaurants that have opened since January 1, 2020. 

Additionally, there are numerous monthly and annual fees franchisees must pay, including a royalty fee of 4% or 5% of sales and an advertising and promotion fee that is a minimum of 4% of gross sales. Franchisees also pay annual fees for various software and digital equipment, such as a $150 annual fee for using self-ordering kiosks.

Average per-unit sales: $4 million

Startup costs: $272,915 to $989,415

Minimum liquid asset requirement: $250,000

Minimum net worth requirement: $750,000

Franchise fee: $25,000

Ongoing fees: Papa John’s charges a monthly royalty fee of 5% of net sales. Papa John’s also requires that franchisees spend 6% of net monthly sales on marketing.

Average per-unit sales: $1.1 million

Startup costs: $1.7 million to $3.4 million

Minimum liquid asset requirement: $500,000

Minimum net worth requirement: $1 million

Franchise fee: $30,000 of the $45,000 initial license fee credited via royalty.

Ongoing fees: Sonic charges a royalty fee of up to 5% of gross sales and advertising fees of at least 3.25%.

Average per-unit sales: $1.6 million

Startup costs*: $199,135 to $536,745

Minimum liquid asset requirement: $100,000  

Minimum net worth requirement: $150,000 

Franchise fee: $15,000

Ongoing fees: Subway franchisees pay weekly fees based on gross sales, which include an 8% royalty fee and 4.5% fee for advertising.

Average per-unit sales: $490,000 in 2023, according to Technomic

Startup costs: $1.9 million to $4.3 million

Minimum liquid asset requirement: $2 million

Minimum net worth requirement: $5 million

Franchise fee: $45,000

Ongoing fees: Taco Bell charges a period franchise fee equal to 5.5% of gross sales and a period marketing fee equal to 4.25% of gross sales.

Average per-unit sales: $2.1 million in 2023, according to QSR Magazine

Startup costs: $1.5 million to $3 million for a cash purchase, though the fee can be lower depending on financing options

Minimum liquid asset requirement: $500,000

Minimum net worth requirement: $1 million 

Franchise fee: $50,000

Ongoing fees: The advertising fee is 4% of gross sales and covers both national and local advertising. The royalty fee is 4% to 6% of gross sales.

Average per-unit sales: $2.1 million for franchise locations