Many entrepreneurs are looking for the cheapest fast-food franchises to open in the USA. I think it is the best idea to earn money collaborating with big businesses that are already established. There are various brands are already working in the United States and they are earning lots of revenue too. So why don't you earn potential income for yourself?

However, opening a franchise business is not an easy task. Especially if you are new to this. But do not worry about it. Here you will get a complete guide on this type of business. Many franchises have expensive upfront fees and some of them also have affordable fees. Therefore, choose any of them according to your budget and requirements.

What Are The Franchise Fees

Initial Franchise Fee

It is a kind of fee that you have to pay once at the start of your company. For example, at the time of the deal done. You will have to pay this fee at the start of the agreement. This way, you can get their initial services according to your contract. These services could be training, marketing materials, and anything else related to the brand.

Royalty Fees
Every month, you pay fees to the main company. The fee is a part of your sales, ranging from 4% to 12% for most restaurant franchises. In many food franchises, this fee gets you ongoing help, like marketing support.

Advertising Fee
In restaurant franchise businesses, advertising fees are continuous payments to the main company. These fees help promote the franchise to a bigger audience. The advertising fee is usually a smaller part of the franchise's total sales compared to the royalty fee.

The main aim of these fees is to make sure the main company is using its resources to advertise the franchise's stuff on its main website and through its network.

In addition, you will also have to spend money on packaging. For this purpose, you can have custom food boxes with logo. This way, you can also promote your business by having a logo on the packaging boxes.

Top 4 Cheapest fast food Restaurant Franchises

1. Baskin Robbins

Baskin-Robbins franchise is a top ice cream choice with a successful business plan used in over 7,700 shops across 52 countries. When you become a Baskin-Robbins franchisee, you're part of a famous brand and a global group of franchise experts.

No expensive up-front franchise fee
You might wonder, "Why is it so cheap?" Especially since they're a famous brand. But that's because Baskin-Robbins has a simple business plan, is easy to run, and has a successful history. That's why their starting franchise fee is affordable.

Low monthly royalty fees.
A major accomplishment for them is their small royalty fee: 4.5% of sales. This helps franchisees have extra money for important stuff like marketing and training, and still make a good profit.

Flat fees for advertising
This fast food chain franchise did something different. They charge a fixed fee for advertising, based on total sales, not a percentage of sales.

2. Cold Stone Creamery

This much-loved ice cream brand is called a "bright star" in the big US ice cream market, and it's clear why. With its creamy and indulgent treats, Cold Stone is a top choice for Americans all over the country.

Initial Franchise Fee
Cold Stone Creamery's franchise fee is lower than some other franchises. This fee lets you use the brand name, trademarks, and business systems of the franchise.

Ongoing Royalty Fee
Cold Stone Creamery takes a royalty fee of 6% from franchisees' sales. This is common in franchising, but it's lower than some other food franchises. This helps franchisees keep more of their earnings.

Small Store Size
Cold Stone Creamery shops are usually smaller than full-service restaurants. This means lower rent and maybe fewer costs to run. The smaller space also needs less money for starting and building.

3. Chick-Fil-A

It is a very famous fast food chain in all states of the US. This company has around 2,000 restaurants across the country. According to sources, you will have to arrange only a $10,000 fee to open a new fast-food franchise business with Chick-fil-A. There's no need for a specific minimum net worth or amount of money that candidates must have.

Streamlined Menu
They mainly offer chicken-based items on their menu. This makes things simpler and reduces the need for lots of ingredients, equipment, and training. This simplicity helps keep costs down compared to franchises with more complicated menus needing special stuff.

Centralized Decision Making
This way of working lessens the load on franchisees. They can depend on the corporate team's knowledge. Chick-fil-A doesn't make franchisees handle marketing or create their own systems, which helps keep starting fees lower.

Leasing Model
The company rents land, buildings, and equipment to franchisees. This lessens the money franchisees need upfront. This renting approach can really cut down the starting costs.

Strong Support System
This helps lessen the risks of starting a new business and makes things run more smoothly. It might even lead to better financial results.

4. Firehouse Subs

Firehouse Subs is a great option if you want a franchise. They give good ingredients and have good connections with franchisees. They also really care about being part of the community.

Low Initial Franchise Fee
Firehouse Subs has a lower starting franchise fee compared to other food franchises. This fee lets franchisees use the Firehouse Subs brand, trademarks, and business systems.

Reasonable Start-Up Costs
Starting a Firehouse Subs franchise is usually affordable. The costs include things like equipment, improvements to the space, first inventory, and other essential stuff to open the restaurant.

Royalty Fee Percentage
Firehouse Subs takes a 6% royalty fee from franchisees' total sales. This percentage is generally lower than other food franchises, which helps franchisees keep more of their earnings.

Efficient Operations
This simplicity means less need for lots of equipment, tricky ingredient finding, and intense staff training. This could save franchisees money. Even though a Firehouse Subs franchise is a low-cost option, you still need to work hard for success. You'll also need to meet financial requirements, including liquid assets and net worth.