Fast Food Franchise Opportunities
There is no doubt that the fast-food business is very profitable, not only that it allows you to be your boss, but profit from this type of business is reoccurring. But you know it is not all that rosy; being a fast food Franchise owner means you will have to bear some running costs like marketing, product development, and advertising. The thing is, even when it can be expensive to start, the turn over is worth it. Starting a business like this costs at least $750,000 in liquid assets to start a fast-food restaurant like Taco Bell or McDonald’s. And to open a KFC fast food business, you should worth at least $1.5 million. Now you know what we mean.
The United States fast food market was worth 273 billion in 2019 but dropped to 239 billion in 2020 because of the COVID-19 pandemic. But even with the pandemic’s presence, it is expected to reach $931.7 billion in 2027. it is expected that society must be recovering or fully recovered from the scourge of the pandemic. But in all, this sector is still considered one of the best franchises to invest in as an entrepreneur.
Top 3 Fast Food Franchises to Consider
McDonald’s Franchise
This place doesn’t need much introduction; everybody knows and likes McDonald’s. You need at least a non borrowed fund of $955,000 to be called an investor in McDonald’s. The thing is, some owners get involved in the purchasing pattern by buying off an already existing restaurant from either MacDonald’s themselves or the operators of MacDonald’s. A small number of new operators prefer to buy off a new facility, but it requires a 40% initial down payment. Again, there is a franchise fee of $45,000 and a service fee of 4%, which is gotten from gross sales.
Pinkberry Franchise
The franchise is fixed at $35,000 (not verified, though), but the start-up cost differs according to the location. The initial investment in this franchise ranges from $310,000 – $615,000, but then, there is a need for cash liquidity of $200,000 and $400,000 in net worth. But unfortunately, people who operate the yogurt shops and frozen desserts won’t discuss sales, but the silver lining could benefit $250,000 as per 1,500 customers daily.
Wendy’s Franchise
You will be needing $2 million in liquid assets, a franchise fee of $40,000, and $5 million net worth to be part of the franchise group, or what they prefer calling new multiunit franchisees. It has a royalty fee of 4%, and an advertising fee of 4% as well. But unfortunately, you might have to hold on to the purchase of this franchise. The reason is that they are not presently requests, especially for domestic franchises, but both Canadian and international franchises are very much available.
Finally, the fast-food franchise might be low in market capitalization today obviously because of the COVID-19 pandemic, but the come back is very well expected, and it is going to be huge.
About Scott Milas, Franchise Consultant and Franchise Broker
Scott Milas is a franchise Top 15 consultant with The Franchise Consulting Company who works with many different people from all types of backgrounds who are interested in learning about owning their own business for the first time. He also works closely with multi-unit/brand owners who are looking to diversify their business portfolios. Contact Scott at 413-935-5111 or [email protected]. For more information on Scott, visit www.scottmilasfranchisehelp.com
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