How much does a franchise cost in 2026?

Franchise costs in 2026 range from $4,195 (Jan-Pro commercial cleaning) to $4.5M+ (Planet Fitness). The most popular franchise brands cluster between $200,000–$500,000 total investment. McDonald's requires $1.0M–$2.3M, Subway $229K–$522K, Chick-fil-A has a $10,000 franchise fee but selects operators (company retains ownership). Most prospective franchisees are looking at $300,000–$750,000 for a recognizable food brand.

What is the cheapest franchise to buy in 2026?

The cheapest franchises to buy in 2026 are service-based home businesses: Jan-Pro ($4,195–$56,990), Cruise Planners ($2,295–$23,465), Jazzercise ($2,500–$38,000), and similar home-based or unit franchise models. For food franchises, the entry point is much higher — Subway starts around $229,000 and is the most affordable major QSR brand. Be cautious of very low-cost franchises; some use the initial low fee to sell territories, with ongoing royalties that are high relative to revenue.

Did franchise costs go up in 2026?

Yes, across most categories. Food franchise investment ranges rose 5–12% from 2024 as build-out and equipment costs increased. Several major brands (McDonald's, Chick-fil-A, Dunkin') updated their FDD figures in 2025 disclosures, reflecting higher real estate, construction, and equipment costs. Service franchises with lower fixed asset requirements saw smaller increases. Royalty fee percentages have remained largely stable — most brands are at 4–8% of gross revenue.

What are typical franchise royalty fees in 2026?

Franchise royalty fees in 2026 typically run 4–8% of gross revenue, plus a 1–4% marketing/advertising fund contribution. McDonald's charges 4% royalty + 4% ad fund (8% total on gross revenue). Subway is 8% + 4.5%. Chick-fil-A charges 15% of gross + 50% of pre-tax profit — unusually high, but offset by company ownership of the real estate and equipment. Some fitness and service brands charge flat monthly fees instead of percentage royalties.

How much net worth do you need to buy a franchise in 2026?

Net worth requirements vary widely: Subway requires $400,000 net worth with $100,000 liquid capital. McDonald's requires $500,000 liquid (not net worth, liquid cash). Planet Fitness requires $1.5M net worth with $500,000 liquid. Most mid-range food franchises ($300K–$600K investment) require $300,000–$500,000 net worth and $100,000–$150,000 liquid capital. The liquid capital requirement is what trips up most applicants — lenders count retirement accounts differently from cash.

Franchise Costs in 2026: What 50+ Brands Actually Charge

Franchise investment ranges from $4,195 to $4.5M depending on the brand and category. Food franchise costs rose 5–12% from 2024 as construction and equipment expenses increased. Here's what the data shows across 50+ brands.

2026 Franchise Costs at a Glance

$4,195

Lowest total investment (Jan-Pro)

$385K

Median investment (food brands)

$4.5M

Highest investment (Planet Fitness)

5–12%

Cost increase vs 2024

2026 Franchise Costs — Top Brands

FDD-sourced investment ranges. Full comparison table with ROI data →

Brand	Category	Franchise Fee	Total Investment	Royalty
McDonald's	Fast Food	$45K	$1.0M–$2.3M	4%
Subway	Fast Food	$15K	$229K–$522K	8%
Chick-fil-A	Fast Food	$10K	N/A (co-owned)	15% + 50% profit
Dunkin'	Coffee/Bakery	$40K–$90K	$437K–$1.6M	5.9%
7-Eleven	Convenience	Varies	$50K–$1.1M	Gross profit split
Jersey Mike's	Sandwiches	$18.5K	$185K–$786K	6.5%
F45 Training	Fitness	$50K	$313K–$595K	7%
Planet Fitness	Fitness	$20K	$1.1M–$4.5M	7%
CycleBar	Fitness	$49.5K	$284K–$488K	7%
Jan-Pro	Cleaning	$1K–$13.5K	$4.2K–$57K	10%

Sources: 2025 FDD filings, public disclosures. Total investment includes franchise fee, real estate, build-out, equipment, initial inventory, and working capital. Actual costs vary by location and negotiation.

2026 Franchise Cost Ranges by Category

What category you choose sets the investment floor. Browse all categories →

Fast Food / QSR

$229K–$2.3M

Wide range — Subway entry vs McDonald's. Real estate and build-out drive the high end.

Coffee & Bakery

$437K–$1.2M

Dunkin', Tim Hortons, Scooter's. High equipment and real estate costs.

Fitness / Gyms

$284K–$4.5M

CycleBar on low end, Planet Fitness on high. Long ramp-up to profitability.

Home Services

$50K–$300K

Lawn care, cleaning, restoration. Lower capital but territory-dependent revenue.

Convenience / Retail

$50K–$1.1M

7-Eleven varies by store type. Inventory and working capital add up fast.

Sandwich / Fast Casual

$185K–$800K

Jersey Mike's, Which Wich, Jimmy John's. Smaller footprint than QSR.

Home-Based / Service

$4K–$50K

Jan-Pro, Cruise Planners. Lowest entry cost; income tied directly to effort.

What's Included in "Total Investment" — and What Isn't

Cost Component	Typical Range	Notes
Franchise fee (initial)	$10K–$90K	One-time. Pays for the license to use the brand.
Real estate / lease deposits	$10K–$200K	Varies enormously by market. Often the biggest swing factor.
Build-out / construction	$50K–$800K	QSR locations: $200K–$500K typical.
Equipment	$30K–$250K	Kitchen, POS, signage, fixtures.
Initial inventory	$5K–$60K	First order of product to open doors.
Working capital	$25K–$150K	FDD typically requires 3–6 months of operating expenses.
Training & travel	$3K–$15K	Usually required, not always included in FDD total.
Legal/accounting (FDD review)	$2K–$5K	Never skip — FDD review by a franchise attorney is essential.

What FDD totals often understate: grand opening marketing ($5K–$25K), professional services (attorney, accountant) during setup ($5K–$15K), and the personal income gap during the ramp-up period (6–18 months before a unit becomes self-sustaining).

What Changed for Franchise Costs in 2026

QSR build-out costs up 8–15%

Construction costs for food franchise locations rose sharply in 2025 and haven't retreated in 2026. A standard 1,500 sq ft QSR build-out that cost $280,000 in 2022 now runs $320,000–$340,000. Labor and materials both drove the increase. Several major brands updated their FDD Item 7 (estimated initial investment) ranges upward in their most recent disclosures to reflect actual contractor bids.

SBA loan rates still elevated — financing harder

SBA 7(a) loans, the most common franchise financing vehicle, are priced off the prime rate. With prime still above 7.5% in early 2026, a $400,000 franchise loan runs $5,000–$6,500/month for a 10-year term. This reduces your early operating margins significantly. Buyers who locked financing in 2020–2021 at 4–5% rates have a measurable competitive advantage over 2024–2026 entrants. Factor current rates into your break-even projection.

Franchise resales at a discount — under-explored option

Existing franchise resales are trading at 1.5–2.5x EBITDA in 2026, often below new-unit costs. A resale gives you an operating unit with revenue history, staff, and an established customer base — versus 12–18 months of loss-funded ramp-up on a new build. FDD resale disclosures are harder to read, but the ROI math often favors resales for experienced operators. The franchise calculator includes a resale vs new-build comparison.

Compare Brands Side by Side

The calculator shows total investment, estimated payback period, and break-even revenue for any brand in the database. Filter by investment size, category, or net worth requirement.

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Franchise Cost Tools & Comparisons

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Franchise Cost Calculator

Compare total investment across 50+ brands

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Side-by-Side Comparison

Compare any two brands on cost and ROI

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Franchises by Category

Food, fitness, services, retail — sorted by cost

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Startup Costs Guide

What's in FDD Item 7 — and what's missing

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ROI Comparison

Payback period and return on investment by brand

Franchise Costs in 2026: Common Questions

Data: Franchise Disclosure Documents (FDDs), SBA Franchise Loan Data, FRANdata Industry Benchmarks, IFA Economic Reports

Last updated: March 2025

How we calculate this · FDD Item 19 data, where shown, is historical. Past unit performance does not predict your results. Read the full FDD before signing.