Food Franchise Cost: How Much Does a Restaurant Franchise Cost?

Opening a food franchise is one of the most common paths into business ownership, but the cost varies dramatically depending on the brand, restaurant format, and location. A Domino's delivery unit can cost under $150,000 to open. A Culver's with a full dining room and drive-thru can top $5 million. Understanding where each brand falls on that spectrum is the first step toward making a smart investment decision.

This page breaks down the total investment, franchise fees, and ongoing royalty rates for 30 food franchise brands. All figures come from each brand's most recent Franchise Disclosure Document (FDD) or, for company-owned brands, from publicly available financial data. Use the comparison table below to find the right price range for your budget, then click through to each brand's detailed cost page for a full breakdown.

$120,000 to $5,625,000 - Food Franchise Cost Comparison

The table below lists every food and restaurant franchise on this site, sorted by minimum total investment from lowest to highest. The "Total Investment" column shows the full range from the FDD, covering franchise fees, build-out, equipment, initial inventory, training, and working capital.

Non-Traditional & Company-Owned Models

These brands use alternative ownership structures that differ significantly from traditional franchising. They are listed separately because the economics, ownership rights, and risk profiles are fundamentally different.

The range across these 30 brands is massive. On the low end, a Domino's delivery store can be opened for under $150,000, making it one of the most accessible franchise investments in any industry. On the high end, a Culver's restaurant with full build-out can exceed $5.6 million. Most prospective franchisees will find the sweet spot somewhere between $250,000 and $2,000,000 depending on their capital, experience, and preferred restaurant format.

$119,950 to $818,100 - Cheapest Food Franchises

If you are working with limited capital or want to minimize financial risk, these four brands offer the lowest total investment among food franchises that use a traditional ownership model.

Domino's stands out as the single most affordable food franchise. The delivery-focused model eliminates the need for a large dining area, drive-thru infrastructure, or premium real estate. A delivery unit can operate from a 1,200 to 1,800 square foot space in a strip mall or standalone building. The $25,000 franchise fee is standard for the industry, and the total investment starts at just $119,950 for the most basic setup.

Subway has the lowest franchise fee on this list at $15,000 and one of the tightest investment ranges, topping out at around $505,000. The brand's inline retail format means you are leasing a small space and fitting it with Subway's standard equipment package. There is no grill, fryer, or hood system required, which cuts build-out costs compared to most other restaurant franchises.

Jersey Mike's and Papa John's round out the budget tier. Both operate from modest retail spaces with straightforward kitchen setups. Jersey Mike's has the lowest franchise fee after Subway at $18,500, while Papa John's benefits from a delivery-heavy business model that reduces the need for large seating areas.

Keep in mind that low upfront cost does not always mean low total cost of ownership. Subway charges an 8% royalty rate, the highest among these four brands, which adds up over time on every dollar of revenue. Domino's charges a combined 11.5% in royalties and advertising fees. Factor in ongoing costs before choosing a brand based on initial investment alone.

$2,000,000 to $5,625,000 - Most Expensive Food Franchises

At the top of the investment scale, these brands require millions in capital and typically involve ground-up construction, large footprints, and full-service or high-volume drive-thru operations.

Culver's is the most expensive food franchise on this list. The brand requires free-standing buildings with full commercial kitchens capable of preparing their ButterBurger and frozen custard menu from scratch. Most Culver's locations run 4,000 to 4,500 square feet with a drive-thru, and the build-out is highly specific to the brand's standards. The $55,000 franchise fee is the highest among food franchises listed here.

Texas Roadhouse is company-owned and does not franchise in the traditional sense, but building a location costs $2 million to $5.5 million. The full-service casual dining format requires a large building (6,000+ square feet), commercial bar setup, and significant kitchen infrastructure for the from-scratch menu. Similar investment math applies to Buffalo Wild Wings, which adds extensive audio/visual systems for the sports bar experience.

Raising Cane's sits at the upper end of QSR investment despite its simple chicken fingers menu. The cost comes from the brand's preference for ground-up, purpose-built restaurants with double drive-thru lanes in high-traffic locations. The real estate and construction requirements push the ceiling past $3.7 million in major metros.

The tradeoff with expensive franchises is typically higher revenue. Culver's, Raising Cane's, and Buffalo Wild Wings all report strong average unit volumes, which can translate to faster payback periods despite the larger initial outlay. But the capital requirements and financial risk are substantially higher than opening a sub shop or pizza delivery unit.

$119,950 to $5,625,000 - Food Franchise Costs by Category

Food franchises fall into distinct categories, and the investment range within each category can be surprisingly wide. Here is how average costs break down by restaurant type.

Pizza Franchises

Pizza is the most affordable food franchise category overall. The delivery-focused model keeps square footage small and eliminates the need for dining room build-out. Average starting investment across these four brands is roughly $235,000. Domino's is the clear budget leader, while Little Caesars runs higher due to its carryout-focused model that requires slightly larger retail spaces and more equipment for the Hot-N-Ready concept.

Chicken Franchises

Chicken is the widest-ranging food franchise category. Chick-fil-A's $10,000 operator model sits at one extreme, while Buffalo Wild Wings exceeds $3.9 million at the high end. Excluding Chick-fil-A's unique structure, the average minimum investment for a chicken franchise is about $1,049,000. Wingstop stands out as the most accessible traditional chicken franchise, with a compact format that keeps costs under $900,000.

Burger Franchises

Burger franchises tend to be more capital-intensive than pizza or sandwich concepts. The average minimum investment across this group is about $1,357,000. Five Guys is the exception, with an inline retail format that avoids the drive-thru construction costs that push McDonald's, Wendy's, and Culver's into seven-figure territory. McDonald's remains the most recognized brand in the group and charges the lowest royalty rate at 4%.

Mexican Franchises

Mexican food franchises land in the mid-range, with average starting investments around $720,000 across these four brands. Taco Bell has the widest cost spread because it offers everything from non-traditional locations in gas stations and airports (starting under $600,000) to free-standing drive-thru restaurants exceeding $3 million. Chipotle is company-owned and does not franchise, but its per-unit costs give a useful benchmark for the fast-casual Mexican segment.

Sandwich Franchises

Sandwich franchises are among the most affordable food franchise categories. Jersey Mike's, Subway, Firehouse Subs, and Jimmy John's all start under $350,000, making them accessible to first-time franchise owners without massive capital reserves. The outlier is Arby's, which operates from larger free-standing buildings with drive-thrus and costs over $1 million to open. Subway has the lowest franchise fee in the entire food franchise space at $15,000 but compensates with the highest royalty rate at 8%.

4% to 15% - Ongoing Costs: Royalties, Ad Fees, and Rent

The initial investment gets you open, but ongoing fees determine your profitability for years to come. Every traditional food franchise charges some combination of royalty fees and advertising fees as a percentage of gross sales. These fees are paid weekly or monthly regardless of whether the restaurant is profitable.

Chick-fil-A's 15% royalty is the highest by a wide margin, but it makes sense in context. The company funds the entire restaurant build-out and only asks operators for $10,000 upfront. The 15% fee is how Chick-fil-A recoups its investment. For every other brand on this list, the franchisee pays for the build-out and then pays ongoing fees on top of that.

Among traditional franchise models, the combined royalty and advertising burden ranges from 6% (Qdoba) to 13% (Papa John's and Little Caesars). On a restaurant doing $1 million in annual gross sales, the difference between a 6% and 13% combined fee rate is $70,000 per year. That gap gets even wider at higher revenue levels.

Jersey Mike's stands out with no separate advertising fee, keeping its combined rate at just 6.5%. However, Jersey Mike's franchisees are still expected to spend on local marketing. Qdoba also keeps fees low at 6% combined. On the other end, Papa John's charges a total of 13% in combined fees, and Little Caesars matches that with 6% in royalties and 7% in advertising contributions.

Beyond royalties and advertising fees, rent is typically the largest ongoing expense for food franchises. Rent varies too much by market to compare across brands, but as a general rule, QSR restaurants spend 6% to 10% of gross sales on occupancy costs. Add that to the royalty and advertising fees, and you are looking at 14% to 23% of gross revenue going to fixed overhead before you pay for food, labor, or utilities.

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