Food Franchise Costs at a Glance
McDonald's total investment: $1M–$2.2M
Subway total investment: $229K–$522K
Chick-fil-A operator fee: $10,000 (Chick-fil-A owns property)
Dunkin' total investment: $527K–$1.79M
MFE helps with: Working capital, equipment, MCA after opening
Royalty range: 4%–15%+ depending on brand
What Goes Into the Total Cost of a Food Franchise
Every food franchise has two numbers that matter most: the franchise fee (the upfront license payment to the franchisor) and the total investment (everything it costs to get the doors open). The total investment always includes the franchise fee plus build-out costs, equipment, initial inventory, training, signage, and the working capital reserve the franchisor requires.
The ranges published in Franchise Disclosure Documents (FDDs) reflect real variation in build-out cost depending on location type — mall kiosk vs. freestanding building vs. strip center endcap. Location type is one of the biggest drivers of total investment variation within a single brand.
This guide presents FDD-sourced ranges for major brands with annotations on what drives costs to the high or low end.
Fast Food and QSR Franchise Cost Comparison 2026
| Brand | Franchise Fee | Total Investment (Low) | Total Investment (High) | Royalty | Ad Fund |
|---|---|---|---|---|---|
| McDonald's | $45,000 | $1,008,000 | $2,214,080 | 4% | 4%+ |
| Subway | $15,000 | $229,050 | $522,300 | 8% | 4.5% |
| Chick-fil-A | $10,000* | $458,995 | $3,227,985 | 15% + 50% net | Included |
| Dunkin' | $40,000–$90,000 | $526,900 | $1,787,700 | 5% | 5% |
| Taco Bell | $25,000–$45,000 | $575,600 | $3,370,100 | 5.5% | 4.25% |
| Burger King | $50,000 | $1,865,000 | $3,310,000 | 4.5% | 4% |
| Wendy's | $50,000 | $2,000,000 | $3,500,000+ | 4% | 3.5% |
| Domino's | $10,000 | $125,200 | $461,800 | 5.5% | 6% |
| Pizza Hut | $25,000 | $367,000 | $1,611,000 | 6% | 3% |
| Sonic Drive-In | $45,000 | $1,240,500 | $3,536,000 | 5% | 4.7% |
| Popeyes | $50,000 | $238,000 | $3,547,100 | 5% | 3% |
| Five Guys | $25,000 | $315,000 | $700,000 | 6% | 1% |
| Jersey Mike's | $18,500 | $192,000 | $802,000 | 6.5% | 2% |
| Jimmy John's | $35,000 | $330,500 | $556,000 | 6% | 4.5% |
| Panera Bread | $35,000 | $982,000 | $2,346,000 | 5% | 2.7% |
| Shake Shack | $10,000 | $500,000 | $1,800,000+ | 5% | Varies |
| Culver's | $55,000 | $1,921,300 | $4,987,100 | 4% | 2.5% |
*Chick-fil-A owns the real estate and equipment. Operators pay a $10,000 license fee. Total investment column reflects construction and equipment costs funded by Chick-fil-A, which then shares revenue. Operators do not own physical assets. Source: FDD filings, 2024–2025.
Brand-by-Brand Deep Dives
McDonald's Franchise Cost
Franchise fee: $45,000
Total investment: $1,008,000–$2,214,080
Liquid assets required: $500,000 minimum
Royalty: 4% of gross sales
Ad fund: 4%+ of gross sales
McDonald's is unusual in that the company rarely awards new builds to first-time franchisees. Most McDonald's acquisitions involve purchasing an existing location from a current owner. The purchase price of an existing location adds significantly to total cost beyond FDD ranges.
McDonald's is consistently the highest-revenue QSR per unit — average annual sales of approximately $3.7 million per location. The 4% royalty is among the lowest in fast food, which is significant at that revenue level.
Subway Franchise Cost
Franchise fee: $15,000
Total investment: $229,050–$522,300
Liquid assets required: ~$40,000–$90,000
Royalty: 8% of gross sales
Ad fund: 4.5% of gross sales
Subway has one of the lowest total investment requirements among major QSR brands, driven by its simpler store format and no cooking equipment needed at many locations. The trade-off is an 8% royalty — higher than most fast food brands — which significantly impacts unit economics at lower revenue volumes.
Subway has been aggressively closing underperforming units and redesigning its restaurant model. New builds use the "Fresh Forward" design which has higher build-out costs than older formats.
Chick-fil-A Franchise Cost
Operator fee: $10,000
Revenue share: 15% royalty + 50% of net profit to Chick-fil-A
Asset ownership: None (Chick-fil-A owns property and equipment)
Acceptance rate: Under 1% of applicants
Chick-fil-A's model is unlike any other franchise. The company funds and owns the real estate and equipment. Operators invest $10,000 but do not own assets. In exchange, Chick-fil-A takes a 15% royalty plus 50% of remaining net profit.
Despite the revenue share, Chick-fil-A operators typically earn $150,000–$250,000+ per year in take-home pay due to exceptional unit economics. Average unit volume exceeds $8 million — more than double most competitors.
Dunkin' Franchise Cost
Franchise fee: $40,000–$90,000
Total investment: $526,900–$1,787,700
Liquid assets required: $250,000 minimum
Royalty: 5% of gross sales
Ad fund: 5% of gross sales
Dunkin' (rebranded from Dunkin' Donuts in 2019) operates primarily in the Northeast U.S. with strong brand recognition but significant white space elsewhere. Franchise fee varies by territory and development agreements for multiple units. The franchise fee range reflects single-unit vs. multi-unit agreements.
What the Published Numbers Don't Tell You
FDD investment ranges are often misread. A few critical caveats:
- Real estate is often excluded. Many FDD ranges do not include real estate purchase costs or include only a lease deposit. If you are buying land or a building, add that separately.
- Working capital requirement is real. Most food franchisors require demonstrating 3–6 months of projected operating expenses in liquid reserves at time of opening. For a $300,000 annual operating cost franchise, that means $75,000–$150,000 in cash beyond the investment range.
- Pre-opening expenses add up. Grand opening marketing, training travel, legal fees for FDD review, and real estate attorneys are typically not in the FDD total. Budget an additional $15,000–$40,000 in pre-opening costs.
- Multi-unit development agreements change the math. Many franchisors require or incentivize multi-unit development. The total capital required to open 3 units simultaneously is 2–3x higher than a single-unit investment.
How to Finance a Food Franchise
SBA Loans for Food Franchise Acquisition
SBA 7(a) loans are the most common financing tool for food franchise acquisition. The SBA franchise registry includes most major QSR brands. Requirements: 680+ credit score, 10%–20% equity injection, and approval takes 60–90 days. Maximum loan amount: $5 million.
For Subway, Domino's, and similar lower-investment brands, SBA Express loans (under $500,000, faster approval) may be sufficient. For McDonald's, Burger King, or Culver's, a full SBA 7(a) plus significant personal equity is typically required.
Franchisor Financing
Check Item 10 of the FDD for any franchisor-provided or preferred lender financing. Several brands have negotiated programs with specific lenders who understand the brand's unit economics and can approve loans faster than general SBA lenders.
MFE Products After Opening
Merchant Fund Express does not provide loans to acquire a food franchise. Once a location is open and operating with 6+ months of documented revenue and $10,000+ per month in sales, MFE's products are available for operational needs:
Merchant Cash Advance
Ideal for food franchises with daily card volume. Advance against future sales; repayment scales with daily revenue — perfect for managing seasonal dips without fixed payment pressure.
Details →Equipment Financing
Commercial kitchen equipment, POS systems, refrigeration units, drive-through technology — financed up to 60 months without depleting cash reserves.
Details →Working Capital Loans
Cover inventory buy-ins before promotional periods, payroll gaps, and royalty payments during slow months. Funding in 24–72 hours.
Details →Business Line of Credit
Revolving credit for variable monthly costs — royalty cycles, franchise system fees, seasonal inventory, and marketing fund contributions.
Details →Revenue Based Financing
Fixed percentage of total monthly revenue paid daily via ACH. Predictable cost of capital for franchise owners who need to plan repayment around revenue cycles.
Details →Related Resources
Frequently Asked Questions
How much does a fast food franchise cost?
Fast food franchise costs vary widely. McDonald's total investment ranges from approximately $1 million to $2.2 million. Subway ranges from $229,050 to $522,300. Chick-fil-A has a $10,000 operator fee but total investment (including equipment and build-out) can reach $3.2 million. Dunkin' ranges from $526,900 to $1.79 million.
What is the cheapest food franchise to open?
Among major fast food and food service franchises, Subway has one of the lowest franchise fees at $15,000, with total investment ranging from $229,050 to $522,300. Domino's also has a relatively low total investment starting at $125,200 for a delivery-focused store. Some smaller food-service concepts and non-QSR food franchises have lower total investments.
How much does a McDonald's franchise cost?
McDonald's franchise fee is $45,000. Total investment for a new McDonald's ranges from approximately $1,008,000 to $2,214,080. McDonald's does not sell new restaurants from scratch to most buyers — buyers typically purchase existing franchise locations. A minimum of $500,000 in liquid assets is required.
How much does a Chick-fil-A franchise cost?
Chick-fil-A's operator license fee is $10,000 — one of the lowest in quick-service. However, Chick-fil-A owns the real estate and equipment. Operators do not own the building or land. Operators share 50% of net profit with Chick-fil-A plus a 15% royalty on gross sales.
Does MFE offer food franchise loans?
Merchant Fund Express does not provide loans to purchase or acquire a food franchise. MFE offers working capital, equipment financing, merchant cash advances, and lines of credit to help food franchise owners manage operations, inventory, and equipment costs after the location is open.
How much working capital do I need to open a food franchise?
Most food franchisors require demonstrating 3–6 months of operating expenses in reserve at the time of opening. For a mid-size QSR this typically means $50,000 to $150,000 in liquid working capital beyond the initial investment total.
What is the most profitable food franchise?
Chick-fil-A locations generate the highest average annual revenue per unit among QSR franchises — reportedly $8 million+ per location. McDonald's average unit volume is approximately $3.7 million. However, profitability depends heavily on location, operations, and local market conditions.
Can MFE help with slow periods at a food franchise?
Yes. Merchant cash advances from MFE are designed for businesses with daily card volume — common in food service. Repayment is a percentage of daily sales, so payments automatically decrease during slow periods. This prevents the cash flow stress of fixed monthly loan payments during seasonal dips.