Do you want to become a small business owner? If so, you might be thinking about opening your own restaurant franchise. While there are a lot of people who assume that it takes a tremendous amount of money to become a restaurant franchisee, the reality is that there are plenty of cheap restaurant franchises available.
Regardless of whether you are looking for a list of cheap fast food franchises or a list of the cheapest restaurant franchises in general, you must make sure you are aware of the potential expenses that go along with starting your own restaurant franchise.
Take a look at this list of cheap franchises, and see if you can find the best fast food franchises to own.
A List of the Cheapest Franchises: Starting Your Own Restaurant
If you want to become a restaurant franchisee, there are several franchises you might want to consider. Some of the cheapest options that you might be able to start and own include:
1. Chick Fil A
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If you want to open an inexpensive and popular fast-food restaurant, you need to take a closer look at Chick Fil A. This is a restaurant franchise that is closely associated with the southeast, but it has been expanding across the entire country during the past few years. It has also become one of the most well-known fast-food franchises in the world, and the line appears to be out the door wherever they open.
This is a restaurant that is known for its signature chicken sandwich, but they have other options on the menu as well. The initial franchising cost is only $10,000, and you don't have to worry about any liquid capital or net worth requirements before you will be told that you can open a franchise. Because the bar to open a restaurant is so low, this could be one of the best opportunities for those wanting to become a business owner.
2. Baskin Robbins
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If you are interested in owning a restaurant franchise, one option that you might want to consider is Baskin-Robbins. For a long time, this has been one of the most popular ice cream chains in the world, and now, you can become an owner yourself. The initial franchise fee is $25,000, which means it has one of the lowest franchising fees in the industry.
In addition, they have relatively low royalty fees when compared to the other restaurants in the industry. This means that you have plenty of additional money freed up that you can invest elsewhere. The advertising fees they charge are also based on your gross sales, which means it will be easier for you to keep the books balanced.
3. Firehouse Subs
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If you want to open your own sandwich shop, you might be thinking about Firehouse Subs. The company uses fresh ingredients, and the recognizable brand means that you shouldn't have a difficult time getting customers into your store. The initial franchising fee is about $20,000, which is still significantly less than most other restaurants in the industry.
You will have to pay a royalty fee on your sales, but keep in mind that these royalty fees are also relatively low. You will have to hire enough staff to keep your restaurant going, but given the positive reputation of Firehouse Subs throughout the industry, as long as you are willing to put in the work, you shouldn't have a lot of trouble generating enough revenue to keep your restaurant going.
4. Mucho Burrito
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If you are looking for a small, up-and-coming franchise that you can get in on early, you may want to consider checking out Mucho Burrito. This is a relatively inexpensive restaurant franchise to open for a number of reasons. First, the company doesn't spend much on advertising, which means that you don't have to worry about incurring a lot of advertising fees.
The restaurant also has an assembly line format, which will help you keep your overhead expenses as low as possible. The ingredients are fresh, but they come from Mexico, where the expenses are lower. Because you do not have to worry about incurring as many restaurant fees, the bar to open your own franchise is relatively low, so you may want to consider this opportunity if you are looking for a cheap restaurant franchise to open.
5. Cold Stone
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Another ice cream chain that you might want to consider is called Cold Stone. This is another one of the most recognizable ice cream chains in the world, and it has relatively low startup expenses as well. The franchising fee can vary depending on the type of creamery you want to open, but it generally ranges from $12,000 to $27,000. When this is combined with the level of support you get from the top, you may find that it is easier for you to get your franchise off the ground.
The ongoing royalty fee is also relatively low, which means you will have additional money that you can use to expand your franchise and cover your overhead expenses. Keep in mind that an ice cream store does not require a tremendous amount of staff, so your overhead expenses will be low when compared to some of the other options.
6. Scooter’s Coffee
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Have you ever thought about opening a coffee shop? If so, you may want to consider going with Scooter’s Coffee. This is a low-cost coffee shop with numerous locations across the country. While the company itself is selective when deciding to build a new franchise, the total amount of money you need to spend is relatively low.
Keep in mind that the labor costs are also very minimal, as it doesn't take a lot of employees to run a coffee shop. The marketing strategy is streamlined and efficient, which means that you should not need to worry about incurring a bunch of advertising expenses. If you are looking for something a bit off the beaten path, consider opening a coffee shop.
7. Papa John’s
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If you like pizza, there is a great chance that you have at least tried Papa John’s at some point in your life. It is one of the most recognizable pizza franchises in the world, and it is also one of the least expensive options if you would like to get started in the industry. The initial investment is relatively low, with a franchise fee of only $25,000. It has been franchising for more than 25 years, which means that there is plenty of experience from which you can draw.
Pizza restaurants also do not require nearly as much labor as many other restaurants, and the overall square footage of the franchise can be relatively small. Remember that you can also generate revenue through your delivery orders, which means that you should be able to boost your profit margins.
8. Chester’s Chicken
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Next, you might also be thinking about starting a Chester’s Chicken. It has more than 1200 locations scattered across the country, and the restaurant itself offers a variety of chicken creations that should turn your visitors into repeat customers. The brand itself has been operating for more than 70 years, and it has been incredibly successful.
Now, if you want to become a franchisee, the initial franchising fee is very low. It has been estimated to be around $3,500, but keep in mind that you will have other startup expenses that you need to meet. One of the biggest reasons why this is such an inexpensive option is that there are no royalty fees, which means you can keep more of the money and pump it back into your business.
9. Subway
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If you are thinking about opening a sandwich shop, you need to think about going with Subway. This is arguably the most recognizable sandwich chain in the country, and because it advertises so heavily, you know that your sandwich shop is going to get noticed. With tens of thousands of locations around the world, it should come as no surprise that this is also one of the most popular franchising options.
The franchise fee to open a Subway is only $15,000, which makes it significantly less expensive than most of the other choices in the industry. While you will have to invest plenty of other money to get your franchise off the ground, you do not need to worry about spending a lot of money on labor, as the assembly line model will help you keep your expenses as low as possible.
10. Domino’s
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There are plenty of other pizza joints to consider as well, and one option could be Domino's pizza. This franchise only has a franchise fee of $25,000, which is lower than many of the other options in the industry. The total initial investment is significantly higher, but keep in mind that the royalty fees are also lower than most of the other restaurants in the industry.
You will need to have some liquid cash available, but the labor expenses of a pizza restaurant are often relatively low. Remember that you will have an opportunity to generate additional revenue if you decide to have a delivery arm, so there are plenty of options available if you want to become a pizza restaurant franchisee.
11. Quizno’s
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Another sandwich chain that you might be thinking about opening is called Quizno’s. This is another very recognizable sandwich shop, and it is known for its toasted bread. They can be found all over the country, and they are also relatively easy to open. For example, the initial franchise fee is about $30,000, which places it below most of the other restaurants in the industry.
Furthermore, the advertising fee is based on a percentage of your gross sales, and it is significantly lower than most other fast food restaurants. Because the overhead expense is lower, this could be the best option available if you are looking for an inexpensive restaurant chain that you can open. Keep in mind that sandwich shops also require fewer employees than most other restaurants.
12. Dickey’s Barbecue Pit
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If you love barbecue, then you have probably heard about Dickey’s Barbecue Pit. This is also a restaurant that has a relatively low cost to become a member of the family. While it is unclear what the actual franchising fee is, the total cost will vary depending on the size of the restaurant.
The recurring fees for royalties and advertising will also scale with the revenue you make, which means it is easier for you to keep your books balanced. While you will have to think about the part of the country you open your restaurant in, you may want to consider becoming a barbecue restaurant owner.
13. Planet Smoothie
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Smoothies have become more popular, and you might be thinking about opening your own smoothie restaurant. If that is the case, you might want to consider becoming a franchisee of Planet Smoothie. The initial franchising fee will vary depending on the size of the restaurant you want to open, but once you get started, the overhead expenses are relatively low.
You don't have to worry about hiring a lot of employees to work the restaurant, as it doesn't take a lot of hands to work a cash register and a blender. You also have the opportunity to let your creative side shine through, as you may be able to create your own smoothie recipes as well.
14. Qdoba
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Another burrito restaurant that you might want to consider adding to your list is called Qdoba. This is one of the most recognizable burrito chains in the world, and it could be perfect for you as well. The initial franchising cost is about $30,000, which is still lower than many of the other restaurants in the field.
Then, because you don't require a lot of equipment to run a burrito restaurant, the overall square footage of your restaurant is probably going to be a bit smaller. This is another opportunity for you to save money. A burrito restaurant also has an assembly line model, meaning that you don't need to worry about having a lot of employees working in the restaurant.
15. Pizza Hut
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Finally, one more pizza restaurant that you may want to add to the list is Pizza Hut. This is arguably the most recognizable pizza chain in the country, and you can become a franchisee. The initial franchising fee is only $25,000, and you don't have a lot of other recurring expenses as well. The advertising and royalty fees are relatively low compared to other restaurants in the industry.
If you run a pizza restaurant, you may be able to make some extra money by having a delivery service. It will be up to you to decide whether this is worth it, but you have plenty of opportunities available if you want to become a pizza restaurant owner. You might want to consider adding Pizza Hut to your list.
Frequently Asked Questions
It is not unusual for people to have questions when they are thinking about becoming a restaurant franchisee. Some of the most common questions people ask include:
1. How much does it cost to open a restaurant franchise if you want to join an existing brand?
The exact cost of opening a restaurant franchise will depend on a number of factors. While there is an initial fee that you need to pay if you want to become a part of the family there are other startup costs as well. For example, will need to acquire property for your restaurant franchise, you will need to purchase equipment, and you will need to hire enough people to run the restaurant for you.
2. What types of fees do you need to pay if you decide to open a restaurant franchise?
If you want to open a restaurant franchise, there is generally an initial franchising fee. This is money that you pay to open a branch of the restaurant. This is typically in the tens of thousands of dollars, but the exact size of the fee will vary depending on the brand you decide to join.
3. Does a franchise restaurant charge you a monthly fee to be a part of the brand?
Typically, if you become a franchisee, there are other monthly expenses that you need to pay. For example, you will need to pay a royalty fee, which is usually a few percentage points of your gross sales. Then, there is an advertising fee that you need to pay as well, as the brand is going to do most of the national advertising. This will also be a few percentage points of your gross sales.
4. Does it take a lot of time to become a restaurant franchise owner?
Even though you get to own your own business and make your own work schedule, there is still a lot of time that you will have to put into your restaurant if you wanted to be successful. For example, you will need to spend time taking a look at your books to make sure your restaurant is profitable. You will also need to spend time hiring the right employees to run your restaurant for you.
5. How much control do you have if you decide to open your own restaurant franchise?
It depends on the brand you join. For example, you may be able to control the prices you charge for your food, but you may have restrictions on the changes you can make to the menu. Depending on the contract you sign, you may also be at the mercy of the brand, so you may not agree with a lot of the changes you have to make. Even though there are opportunities for a tremendous amount of success, keep in mind that there is always a chance that you could go out of business.
