Fast food chains are popular across the country and offer a variety of foods from windows and counters. If you’re interested in entering the world of fast food, read on for a guide.
What is a fast food franchise?
Fast food franchises are quick service restaurants that use a franchise system to grow. Independent operators operate their own locations, connected to the larger brand.
The fast food restaurant industry in 2022
The fast food industry remains popular even with supply and worker challenges. Fast food restaurants continue to offer cost-effective and convenient options that customers value.
Why you should consider becoming a fast food franchise owner
If you’re looking to start your own business in 2022, here are some reasons why franchise owners should consider a fast food business model:
- Choose from tons of options: There’s a franchise opportunity for just about everyone in fast food, from burger joints to specialty food stands.
- Enjoy a reliable model: Fast food has been around for decades and is consistently popular.
- Gain great brand recognition: Many brands are known across the country, giving your business instant credibility.
- Get started fast: A franchise model allows you to quickly find a location, equipment, ingredients and team members.
- Make a profit: Fast food tends to be quite profitable compared to other food service businesses. Franchisees enjoy additional purchasing power through their connection to a national brand to keep costs low.
The best fast food franchises
If you’re looking for fast food franchises to start in 2022, here are some to consider.
1. Burger King
Burger King offers a well-known brand with tons of markets still open to growth. The company offers extensive training and purchasing power for a franchise agreement fee of $50,000.
2. McDonald’s
McDonald’s franchise opportunities are among the most popular due to high brand recognition. Various models are available, from simple cars to large restaurants with play areas. Franchisees pay an initial fee of $45,000.
3. Metro
Subway restaurants offer a build-your-own sandwich model that is popular around the world. The starting fee is $15,000 in the US and Canada.
4. KFC
KFC offers a varied menu and flexible restaurant models. The initial investment for initial construction starts around $1 million, but there are also non-traditional options starting at $250,000.
5. Taco Bell
Taco Bell Restaurant offers franchise opportunities in the United States and internationally. The brand is popular among young people and starting fees range from $25,000 to $50,000.
6. Wendy’s
Wendy’s is a traditional hamburger franchise with many unique menu options and significant brand recognition. The franchise fee for a 20-year term is $50,000.
7. Aunt Anne
Auntie Anne’s is a pretzel bakery with a counter service model. Franchisees are often set up in malls, but there are several models available, including kiosks and trucks. The franchise fee is $35,500, with upfront costs starting at $145,000.
8. Jersey Mike’s
Jersey Mike’s is a counter service sub shop with many markets available in the US. The franchise fee is $18,500, with a total initial investment starting around $145,000.
9. Popeye’s
Popeye’s is a Southern-style fried chicken franchise with room for growth nationwide. Costs vary by location and restaurant model, but the initial fee is $50,000 and total expenses start around $235,000.
10. Chick Fil A
Chick Fil A is another popular chicken chain known for quality service and Christian values. There are several models available, so startup costs vary. But the franchise fee starts at just $10,000.
11. Five boys
Five Guys is a popular burger chain with a simple menu and competitive prices. The starting fee is $25,000 to start.
12. Dairy Queen
Dairy Queen is a popular ice cream brand that also offers quick service “Grill ‘n’ Chill” models. The franchise fee is $45,000 and the total initial investment starts around $1.5 million.
13. Dunkin’
Dunkin’ is a popular coffee shop that also offers baked goods and breakfast foods from various store designs. Franchise fees range from $40,000 to $90,000, with total initial investment starting at around $530,000.
14. Pizza Hut
Pizza Hut is a popular chain with several models available, from counters to full-service restaurants. Non-traditional investments start around $40,000, while full-service restaurants start at $367,000.
15. Papa John’s
Papa John’s pizza is a delivery and quick service franchise with opportunities available throughout the United States and internationally. New franchisees must pay a $25,000 fee and have at least $75,000 in liquid assets.
16. Teriyaki Madness
Teriyaki Madness is a Japanese-inspired quick service model often found in shopping malls and large complexes. Initial startup costs range from $346,000 to $768,000.
17. Cinnamon
Cinnabon is a popular bakery chain with several models available, from full stores to kiosks. They also co-brand with Auntie Anne’s. The initial franchise fee is $30,500 and total costs start around $230,000.
18. Smoothie King
Smoothie King is a popular smoothie stand that offers additional menu items. Units can be online or drive-through locations. The starting fee is $25,000 to $30,000, with startup costs starting at $320,000.
19. Culver’s
Culver’s is a frozen burger and custard restaurant known for fresh ingredients. The company has several markets available in the United States for a franchise fee of $55,000.
20. Ladies
Checker’s and Rally’s are racing-themed burger joints that focus primarily on automotive service. The initial franchise fee ranges from $20,000 to $30,000.
How to choose the best franchise to set up your fast food restaurant business
Aside from looking for a recognizable brand that offers franchises in your area, here are some other factors to consider.
Determine your budget
How much can you spend up front? And what ongoing costs do you think are reasonable?
Analyze your market
Consider opportunities that are unique to your area or wherever you plan to start your business.
Research opportunities
Check out the Franchise Company Review, Franchise Disclosure Document, and FAQs to find any opportunity that appeals to you.
Talk to the candidates
Once you’ve found an opportunity you like, contact their franchise team to discuss and get a better idea of their requirements and process.
How much does it cost to open a fast food franchise?
Because there are so many fast food franchises available, start-up costs vary widely from around $200,000 to over $2 million. Many fall between $300,000 and $500,000, including everything from the initial franchise fee to other start-up costs such as restaurant equipment. Many also charge royalties or a monthly service fee.
Are fast food franchises profitable?
Fast food can be a very lucrative business. For many restaurants, gross sales and low food costs allow them to maintain a 5-10% profit margin.
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