Thursday, September 18, 2014

How Much Does It Cost to Buy a Restaurant Franchise?

How much will it cost for a franchise of your favorite restaurant?When looking into becoming a restaurant franchisee, one of the most frequently asked questions is how much does it cost. For being such a common question, it doesn’t really have a straightforward answer. Restaurant franchise costs widely vary depending on company, location, etc. Some of the biggest restaurant franchises in the world come with some pretty big price tags, but don’t be discouraged just because one company’s franchise costs may be out of your reach. There are plenty of other franchises out there that may be more attainable.

To give you an idea of how big of an investment you might be looking at, here’s a list of fees associated with ten popular restaurant franchises:

Total Costs:
Buying an existing restaurant: 25% down payment, rest paid off within seven years
Building a new restaurant: $45,000 initial costs plus about $955,708-$2,290,146

Krispy Kreme:
Initial Costs: $25,000-$50,000
Total Investment: $933,000-$1,888,250

Initial Costs: $135,000
Total Investment: $550,000-$650,000

Initial Costs: $250,000
Total Investment: $500,000-$600,000

Steak ‘n Shake:
Initial Costs: $40,000
Total Investment: $955,000-$1,835,000

Initial Costs: $15,000
Total Investment: $116,200-$262,850

Jet’s Pizza:
Initial Costs: $20,000
Total Investment: $370,000 or more

Cottage Inn Pizza:
Initial Costs: $15,000
Total Investment: $99,000-$160,000

Little Caesars:
Initial Costs: $15,000-$25,000
Total Investment: $265,000-$681,000

Domino’s Pizza:
Franchise Fee: $0-$25,000 for Internal Franchisees, $25,000 for external franchisees (Internal franchisees have experience as a general manager of a Domino’s restaurant for at least a year, external franchisees do not. Minorities and honorably discharged veterans are eligible to receive a reduced franchise fee.)
Total Investment: $119,950-$461,700

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