It’s not just about burgers and fries anymore. Fast food has evolved to include a wide variety of ethnic eats and different styles of food.
Fast food restaurants, also known as quick-service restaurants (QSR), specialize in serving fast food cuisine with minimal table service. They offer a focused menu and usually provide a take-away option.
Your favorite fast-food restaurant is most likely part of a chain or franchise with centralized control of the parent company. This means that each restaurant has an established supply channel with the same standardized ingredients.
Fast food franchises are usually found in locations with high foot traffic, such as transportation terminals, shopping malls, and downtown areas.
4 Fast Food Franchises Opportunities Available for Sale
There are many different types of fast-food franchises available for sale. The key to make money as a franchisee is to invest in a brand before it becomes a huge success. Remember, all the famous franchise brands started with a single location. The way franchisees of brands like McDonald’s and Subway got rich was by getting in early. Finding such hidden gems can be tough on your own, but Fransmart can help you find the next big thing in advance.
As the leading franchise development firm for emerging brands, Fransmart has decades of experience identifying the next big thing. We are the franchise development company that helped bring Five Guys and The Halal Guys into the world of franchising.
Fransmart has identified the following emerging franchisees as the top new brands to become a franchise owner within 2022. We have evaluated these franchise opportunities based on their franchise fees, liquid capital, royalty fees, initial investment, brand worth, and prospects for growth.
Check out our top five most profitable fast-food franchises with low start-up costs.
Curry Up Now
Curry Up Now is the largest and fastest-growing Indian fast-casual restaurant chain in North America, renowned for its innovative spin on traditional Indian eats.
- Franchise Category: Indian Cuisine, Asian Cuisine, vegetarian, vegan, gluten-free, and Halal diets.
- Popular dishes: Naughty Naan, Sexy fries, Tikka masala burritos, deconstructed samosas, and Indian-style tacos.
- Cost of Franchise: Fast food Franchise cost under $40,000
- Initial investment: $392,000 – $1,671,500 (Min 5 units)
- Franchise fees: $ 35,000
- Standardized Process: All chutneys/sauces are prepared & delivered using a commissary & major distributor
- Level of Automation: Moderate
- Franchise support: Strong
- Territories available: Talk to our representative
- Franchise Owner income: Email us for a free FDD copy
Brooklyn Dumpling Shop
This 24-hour, contactless, automat dumpling franchise has spun the QSR industry on its head. Brooklyn Dumpling Shop was already named in America’s Hottest Startup Fast Casuals.
- Franchise Category: Chinese Cuisine, Asian Cuisine, vegetarian, vegan, gluten-free, and Halal diets.
- Popular dishes: 32 unique dumpling varieties, including Philly cheesesteak, French onion soup, lamb gyro, and Impossible; as well as traditional soup dumplings; lobster spring rolls; fried apple and frozen hot chocolate ice cream, sundae dumplings, and more
- Cost of Franchise: under $40,000
- Initial investment: $348,500 – $663,000 (Multi-units)
- Franchise fees: $ 35,000
- Standardized Process: kiosks, automats
- Level of Automation: Highly automated
- Franchise support: Strong
- Territories available: Talk to our representative
- Franchise Owner income: Email us for a free FDD copy
JARS By Fabio Viviani
JARS is a high-volume, hoodless/ventless fast-casual dessert concept leveraging the latest technology to produce high-quality desserts, shakes, and coffee options without needing a commercial kitchen.
- Franchise Category: Desserts Franchise, coffee franchise, Bakery Franchise.
- Popular dishes: tiramisu, cannoli, ricotta fritters, plus pies and crusts, muffins and croissants, American staple desserts, and so much more.
- Cost of Franchise: under $40000
- Initial investment: $349,000 – $785,500 (Min 5 units)
- Franchise fees: $ 35,000
- Standardized Process: 90% of the desserts and bases are prepared offsite and shipped frozen or refrigerated
- Level of Automation: Moderate
- Franchise support: Strong
- Territories available: Talk to our representative
- Franchise Owner income: Email us for a free FDD copy
Rise
Rise Southern Biscuits & Righteous Chicken is an award-winning, innovative fast-casual concept providing fresh, premium quality food at an affordable price point.
- Franchise Category: Healthy Food, Organic Food, Breakfast
- Popular dishes: Chicken Sandwiches, Righteous chicken,
- Cost of Franchise: under $40000
- Initial investment: $420,500 – $598,500 (Min 3 units)
- Franchise fees: $ 35,000
- Standardized Process: Specific Vendor and equipment merchant
- Level of Automation: High
- Franchise support: Strong
- Territories available: Talk to our representative
- Franchise Owner income: Email us for a free FDD copy
How Profitable Are Fast Food Franchises?
Fast food franchises are incredibly profitable compared to other types of businesses. According to a McKinsey study, the average fast-food franchise makes a gross profit of more than 20 percent on revenues of $2.5 million per year. That’s more than twice the profitability of the average small business. The profitability of fast-food franchises varies based on the location and the menu items.
** Franchises with a limited menu, like Ike’s Sandwich, tend to be more profitable because it’s more cost-effective to operate them.
** Franchises selling burgers, fries, and shakes are losing profit to those offering healthier fare like salads and smoothies.
** The most profitable items in the US are typically breakfast sandwiches, coffee, and lunch items.
** The least profitable items are sweetened beverages and desserts. But with creativity, even they are running on better ROI.
Mature fast-food franchises have a narrow margin of profitability. For example, McDonald’s has a 2.6% profit margin, and even Starbucks has only about a 5% profit margin.
How Much Does Fast Food Franchise Cost?
Food franchises are not for everyone. While many fast-food franchises are under $10,000, some upfront money is required to start even the most minor franchise. Most fast-food franchise fees range from $10k to $50k or more. Franchisees need to pay franchise fees, initial start-up costs and ongoing royalties.
Investing in a franchise can be an excellent opportunity to make money if you invest in the right concept. Before making any final decision, make sure that you have all the information and guidance.
Using an experienced franchise consultant like Fransmart can help you save money in the long run. Fransmart has over two decades of experience with emerging brands. In fact they were the team that brought Five Guys and The Halal Guys into franchising. Fransmart only works with the hottest emerging brands to ensure that entrepreneurs have the best opportunity for success and profits. Contact us today to get started on your franchising journey.