CLEVELAND, OH (WOIO) -If your love of Taco Bell, McDonald’s or Starbucks has ever made you think about opening your own franchise you’ve got a lot of work in front you.
“On the whole a fast-food franchise is a great way to achieve the American dream,” said Sam Oches with QSR Magazine, a quick service restaurant publication. “Capital requirements are relatively low, and it’s a massively popular industry. That said, the restaurant industry is no walk in the park. It can be long, grueling hours and profit margins are razor thin.”
According to Oches the cost of opening a fast food location varies greatly depending on the franchise.
“It can be as little as five figures to open a fast-food franchise (for a brand like Subway) but many of the most popular brands can be up into the millions, depending on location and company.”
The restaurant equipment website Bid-On-Equipment.com (BOE) has published a range of prices to open your own franchise and the failure rate of stores that don’t make it:
- Subway $89,000-$328,700 Failure rate: 23%
- Chick-fil-A $265,265-$2.2 M Failure rate: 5%
- Dunkin Donuts $97,500-$1.7 M Failure rate: 12%
- Auntie Anne’s $62,800-$385100 Failure rate: 11%
- McDonald’s $433,000-$2.2 M Failure rate: 20%
- Taco Bell $525,100-$2.6 M Failure rate: 0%
- Krispy Kreme $440,500-$2.7 M Failure rate: N/A
- KFC $1.4 M-$2.7 M Failure rate: 13%