Compare Franchise Costs Side by Side

The franchise fee gets all the attention. It shouldn't. McDonald's charges $45,000. Chick-fil-A charges $10,000. But McDonald's requires $1.3M-$2.3M in total investment while Chick-fil-A funds the buildout themselves. The franchise fee is maybe 3% of what you'll actually spend.

Royalty rates matter more than anything else over a 10-year agreement. Subway takes 12.5% of your gross revenue every month (8% royalty + 4.5% advertising). On a $430K annual location, that's $4,479 per month going to corporate before you pay rent or staff. Kumon and Matco Tools charge zero. Over 10 years, that gap is six figures.

Net worth requirements eliminate more buyers than any other factor. Planet Fitness wants $3M net worth. Taco Bell wants $1.5M. If you have $200K in liquid capital, your realistic options are service franchises, low-end fitness, and budget food concepts. Know your number before you fall in love with a brand.

The comparison that matters most isn't franchise vs franchise. It's franchise fee + royalty burden vs estimated profit. A $20,000 franchise fee with 8% ongoing royalties costs more over 10 years than a $60,000 fee with 3% royalties, assuming equal revenue. Run both numbers before deciding.

Comparing McDonald's to Jan-Pro isn't useful. One requires $2M+ and generates millions in revenue. The other starts at $4K for solo commercial cleaning work. Compare within your budget tier and within categories. A food franchise buyer choosing between Wingstop and Jersey Mike's will learn something. Comparing Wingstop to The UPS Store tells you nothing actionable.

Revenue estimates in this tool are system-wide averages from FDD Item 19 disclosures. Your specific location will vary. Top-quartile operators in strong markets outperform these numbers. Bottom-quartile operators in saturated markets underperform badly. The FDD median, when available, is more honest than the mean.

Territory matters. If you're comparing two food franchises and one grants exclusive territory rights while the other doesn't, the one with territory protection has a structural advantage. Check Item 12 of each FDD. The franchisor that can open a corporate unit two miles from yours just changed your revenue projection.