Business models / Quick-Service Restaurant / Own a franchise

A quick-service restaurant franchise, or your own?

32 franchise brands run a quick-service restaurant. Here they are beside the independent version of the same business, with each brand’s fees as it publishes them and worked out in dollars. A brand can bring customers an independent has to earn one by one. The question is whether it brings in more than it costs.

Typical for a quick-service restaurant: $700k to $2M in sales, and the owner keeps 14% to 22% after paying for its own marketing. Change either to your own numbers.

Work each brand out at

How the two sides are counted

  • Sales. A brand’s name brings customers an independent wins one at a time, so each brand is worked out at the sales it reports where we have them, and at yours where we don’t.
  • Marketing. On your own you pay for all of it, about 3% of sales here (the SBA’s usual range for ongoing marketing). The ad fund does part of that job, so it is counted once, not twice.
  • Survival. New franchised businesses were about 5 to 6 points more likely to make it through their first two years in Census data, and about half of all new businesses close within five years. It is not in the dollars; each brand’s details give the sources.
The independent version

Your own quick-service restaurant

Built and run under your own name

Cost to open
$181k to $843k
Annual sales
$1.2Mtypical
Franchise fee
None
Royalty + ad fund
Noneall marketing is yours
$212,400
The owner keeps in a year, after about $35k of marketing
Selective

Chick-fil-A

Chicken sandwiches

Total investment
$10k
Avg. annual sales
$9.2M to $9.3M
Franchise fee
$10k
Royalty + ad fund
In the details
The fee is not a simple share of sales, so it is not worked out in dollars. The details show it as the brand words it.
Taking new owners

Wayback Burgers

Classic burgers and shakes

Total investment
$256k to $859k
Avg. annual sales
Ask the brand
Franchise fee
$35k
Royalty + ad fund
6% + 4% of sales
$130k
The owner keeps in a year at $1.2M in sales (your sales), after $118k to the brand
$83k less a year than on your own
Selective

Wingstop

Chicken wings

Total investment
$298k to $1M
Avg. annual sales
$2M to $2.1M
Franchise fee
$25k
Royalty + ad fund
6% + 5.5% of sales
$196k
The owner keeps in a year at $2.1M in sales (what it reports), after $237k to the brand
$16k less a year than on your own
Taking new owners

Checkers & Rally's

Double drive-thru burgers

Total investment
$449k to $1.9M
Avg. annual sales
Franchise fee
$20k
Royalty + ad fund
4% + 2.65% to 3% of sales
$165k
The owner keeps in a year at $1.2M in sales (your sales), after $78k to $83k to the brand
$47k less a year than on your own
Taking new owners

Krystal

Small square burgers, Southeast

Total investment
$470k to $2.2M
Avg. annual sales
Ask the brand
Franchise fee
$35k
Royalty + ad fund
5% + 4.5% of sales
$136k
The owner keeps in a year at $1.2M in sales (your sales), after $112k to the brand
$77k less a year than on your own
Taking new owners

Popeyes

Fried chicken

Total investment
$505k to $3.9M
Avg. annual sales
Franchise fee
$50k
Royalty + ad fund
5% + 4.6% to 5% of sales
$130k to $135k
The owner keeps in a year at $1.2M in sales (your sales), after $113k to $118k to the brand
$78k to $83k less a year than on your own
Selective

Dave's Hot Chicken

Nashville hot chicken

Total investment
$617k to $4.1M
Avg. annual sales
Undisclosed
Franchise fee
$40k
Royalty + ad fund
6% + 4% of sales
$130k
The owner keeps in a year at $1.2M in sales (your sales), after $118k to the brand
$83k less a year than on your own
Taking new owners

Captain D's

Fried fish and seafood

Total investment
$662k to $1.9M
Avg. annual sales
Franchise fee
$35k
Royalty + ad fund
4.5% + 2% of sales
$159k
The owner keeps in a year at $1.2M in sales (your sales), after $77k to the brand
$53k less a year than on your own
Taking new owners

Moe's Southwest Grill

Fast-casual burritos and bowls

Total investment
$745k to $1.8M
Avg. annual sales
Franchise fee
$31k
Royalty + ad fund
5% + 3% of sales
$153k
The owner keeps in a year at $1.2M in sales (your sales), after $94k to the brand
$59k less a year than on your own
Taking new owners

Chicken Salad Chick

Chicken salad

Total investment
$777k to $1M
Avg. annual sales
Franchise fee
$50k
Royalty + ad fund
5% + 2% of sales
$153k
The owner keeps in a year at $1.2M in sales (your sales), after $83k to the brand
$59k less a year than on your own
Taking new owners

El Pollo Loco

Fire-grilled chicken, Mexican QSR

Total investment
$794k to $2.7M
Avg. annual sales
Franchise fee
$40k
Royalty + ad fund
5% + 4% to 5% of sales
$130k to $142k
The owner keeps in a year at $1.2M in sales (your sales), after $106k to $118k to the brand
$71k to $83k less a year than on your own
Taking new owners

Huey Magoo's

Chicken tenders

Total investment
$811k to $2.9M
Avg. annual sales
Franchise fee
$35k
Royalty + ad fund
5% + 4% of sales
$142k
The owner keeps in a year at $1.2M in sales (your sales), after $106k to the brand
$71k less a year than on your own
Taking new owners

Arby's

Roast beef sandwiches, drive-thru

Total investment
$862k to $2.5M
Avg. annual sales
Franchise fee
$38k
Royalty + ad fund
4% + 4.2% of sales
$151k
The owner keeps in a year at $1.2M in sales (your sales), after $97k to the brand
$61k less a year than on your own
Selective

Taco Bell

Mexican QSR

Total investment
$935k to $4.3M
Avg. annual sales
Ask the brand
Franchise fee
$45k
Royalty + ad fund
5.5% + 4.25% of sales
$133k
The owner keeps in a year at $1.2M in sales (your sales), after $115k to the brand
$80k less a year than on your own
Selective

Five Guys

Burgers

Total investment
$978k to $1.4M
Avg. annual sales
Undisclosed
Franchise fee
$25k
Royalty + ad fund
6% + 4% of sales
$130k
The owner keeps in a year at $1.2M in sales (your sales), after $118k to the brand
$83k less a year than on your own
Taking new owners

Wendy's

Burgers

Total investment
$1.1M to $2.8M
Avg. annual sales
Franchise fee
$50k
Royalty + ad fund
4% to 6% + 4% of sales
$130k to $153k
The owner keeps in a year at $1.2M in sales (your sales), after $94k to $118k to the brand
$59k to $83k less a year than on your own
Taking new owners

Church's Texas Chicken

Fried chicken

Total investment
$1.1M to $1.6M
Avg. annual sales
Franchise fee
$20k
Royalty + ad fund
5% + 5% of sales
$130k
The owner keeps in a year at $1.2M in sales (your sales), after $118k to the brand
$83k less a year than on your own
Taking new owners

Slim Chickens

Chicken tenders and wings

Total investment
$1.2M to $4.9M
Avg. annual sales
Franchise fee
$30k
Royalty + ad fund
5% + 2% of sales
$153k
The owner keeps in a year at $1.2M in sales (your sales), after $83k to the brand
$59k less a year than on your own
Taking new owners

KFC

Fried chicken

Total investment
$1.2M to $4.2M
Avg. annual sales
Franchise fee
$45k
Royalty + ad fund
4% to 5.25% + 5.8% of sales
$117k to $132k
The owner keeps in a year at $1.2M in sales (your sales), after $116k to $130k to the brand
$80k to $95k less a year than on your own
Taking new owners

Taco John's

Tacos, drive-thru

Total investment
$1.4M to $2.1M
Avg. annual sales
Franchise fee
$40k
Royalty + ad fund
5% + 4% of sales
$142k
The owner keeps in a year at $1.2M in sales (your sales), after $106k to the brand
$71k less a year than on your own
Taking new owners

Hardee's

Burgers and biscuits, drive-thru

Total investment
$1.4M to $2.6M
Avg. annual sales
Ask the brand
Franchise fee
$25k
Royalty + ad fund
4% + 5.5% of sales
$136k
The owner keeps in a year at $1.2M in sales (your sales), after $112k to the brand
$77k less a year than on your own
Taking new owners

Zaxby's

Chicken fingers and wings

Total investment
$1.5M to $3.8M
Avg. annual sales
Franchise fee
$35k
Royalty + ad fund
6% + 3% to 4% of sales
$130k to $142k
The owner keeps in a year at $1.2M in sales (your sales), after $106k to $118k to the brand
$71k to $83k less a year than on your own
Selective

McDonald's

Burgers

Total investment
$1.5M to $2.8M
Avg. annual sales
Franchise fee
$45k
Royalty + ad fund
4% + 4% of sales
$153k
The owner keeps in a year at $1.2M in sales (your sales), after $94k to the brand
$59k less a year than on your own
Taking new owners

Sonic Drive-In

Drive-in burgers

Total investment
$1.5M to $2.5M
Avg. annual sales
Franchise fee
$15k
Royalty + ad fund
5% + 3.25% of sales
$150k
The owner keeps in a year at $1.2M in sales (your sales), after $97k to the brand
$62k less a year than on your own
Taking new owners

Freddy's Frozen Custard & Steakburgers

Steakburgers and frozen custard

Total investment
$1.5M to $2.8M
Avg. annual sales
Franchise fee
$35k
Royalty + ad fund
5% + 2% of sales
$153k
The owner keeps in a year at $1.2M in sales (your sales), after $83k to the brand
$59k less a year than on your own
Taking new owners

Carl's Jr.

Charbroiled burgers, drive-thru

Total investment
$1.5M to $3.3M
Avg. annual sales
Ask the brand
Franchise fee
$25k
Royalty + ad fund
4% + 6% of sales
$130k
The owner keeps in a year at $1.2M in sales (your sales), after $118k to the brand
$83k less a year than on your own
Taking new owners

Del Taco

Tacos and burgers, drive-thru

Total investment
$1.5M to $3.3M
Avg. annual sales
Franchise fee
$35k
Royalty + ad fund
5% + 4% of sales
$142k
The owner keeps in a year at $1.2M in sales (your sales), after $106k to the brand
$71k less a year than on your own
Taking new owners

Dairy Queen

Ice cream and burgers

Total investment
$1.5M to $2.6M
Avg. annual sales
Franchise fee
$45k
Royalty + ad fund
4% + 5% to 6% of sales
$130k to $142k
The owner keeps in a year at $1.2M in sales (your sales), after $106k to $118k to the brand
$71k to $83k less a year than on your own
Taking new owners

Jack in the Box

Burgers and tacos, late night

Total investment
$1.9M to $4M
Avg. annual sales
Franchise fee
$50k
Royalty + ad fund
5% + 5% of sales
$130k
The owner keeps in a year at $1.2M in sales (your sales), after $118k to the brand
$83k less a year than on your own
Taking new owners

Burger King

Burgers, drive-thru

Total investment
$2.1M to $4.7M
Avg. annual sales
Franchise fee
$50k
Royalty + ad fund
4.5% + 4.5% of sales
$142k
The owner keeps in a year at $1.2M in sales (your sales), after $106k to the brand
$71k less a year than on your own
Selective

Bojangles

Chicken and biscuits

Total investment
$2.9M to $4M
Avg. annual sales
Franchise fee
$35k
Royalty + ad fund
4% + 4% of sales
$153k
The owner keeps in a year at $1.2M in sales (your sales), after $94k to the brand
$59k less a year than on your own
Selective

Culver's

Burgers and frozen custard

Total investment
$3.4M to $10M
Avg. annual sales
Franchise fee
$65k
Royalty + ad fund
4% + 3.5% of sales
$159k
The owner keeps in a year at $1.2M in sales (your sales), after $89k to the brand
$53k less a year than on your own
Free account

See all 32 quick-service restaurant brands side by side

  • Every brand’s investment and fees, and what the owner keeps against running your own
  • The yearly sales the first 3 report, and a plus to add brands to your comparison and benchmark them in your account
  • Members see the sales every franchisor reports, for every brand

Free, no card. A new account accepts the Terms and the Privacy Policy. smbnest is a self-assessment tool and never takes a cut of your deal or a fee from a franchisor.

Before you sign: what to read in the disclosure document

Every franchisor must give you its Franchise Disclosure Document at least 14 days before you sign or pay. These are the parts that answer the questions above.

  • Items 5 to 7, the fees and the investment. The franchise fee, every other fee (technology, training, transfer, renewal), and the full opening budget, including working capital.
  • Item 19, what owners earn. Whether the brand states owner sales or earnings at all, and for which units. Put its figures in the boxes above in place of the typical ones.
  • Item 20, units opened, closed and sold. How many owners left in each of the last three years, and a list of current and former owners you can call.
  • Item 12, the territory. Whether you get a protected area, and what the brand can open or sell inside it.
  • Item 21, the franchisor’s own finances. Whether the company behind the brand is in good health.

smbnest is a self-assessment tool, not individualized advice. Fees are as each brand publishes them on its franchising page and in its disclosure document, reviewed in the month shown, and change; the figures in dollars are worked out at the sales you enter and are not a forecast. We never take a cut of your deal or a fee from a franchisor. Before you sign, speak with a franchise attorney and a qualified financial adviser, and call owners from the disclosure document.