How Much Does a Restaurant Franchise Cost?

Opening a restaurant franchise is an attractive business opportunity for entrepreneurs seeking a proven business model and brand recognition to launch a successful business from day one.

How Much Does it Cost to Open a Franchise Restaurant?

Prospective franchise buyers should understand the key cost components involved in opening a restaurant franchise:

1. Franchise Fee
   The franchise fee is an upfront payment to the franchisor for the right to operate under their brand. This fee typically includes access to proprietary systems, training, and operational support. Franchise fees can range from $20,000 for a lowest-cost restaurant franchise to over $75,000 in some cases.
2. Initial Investment
   Initial investment costs encompass all expenses required to get the franchise up and running. This includes real estate, construction, equipment, licenses, and initial inventory. For restaurant franchises, these costs typically range from $250,000 to $2 million.
3. Royalty Fees
   When considering the question of how much does it cost to open a franchise restaurant, an ongoing royalty fee must be considered. This fee, which is a percentage of their gross sales, supports the franchisor’s operational and marketing efforts. Royalties range from 4% to 8% of revenue in most cases.
4. Marketing Fees
   Many franchises require contributions to a national marketing fund, which must be addressed when estimating the restaurant franchise cost. This fee, typically 2% of revenue for the lowest-cost restaurant franchise to 4% for others, ensures consistent brand promotion across all franchise locations.
5. Operating Costs
   Day-to-day expenses, such as labor, utilities, and supply chain costs, are critical considerations. These costs vary by location, market conditions, and operational efficiency. This recurring expense must be considered when you seek to know how much it costs to franchise a restaurant.

Real-world example: restaurant Franchise Cost of Flying Biscuit Café

Flying Biscuit Café stands out as a compelling franchise opportunity, offering a well-balanced mix of affordability, profitability, and dedicated support for franchisees. Here’s an in-depth look at the cost of opening a franchise restaurant with Flying Biscuit Café.

Franchise Fee

Flying Biscuit Café’s franchise fee is a competitive $45,000, offering franchisees access to an established brand with a loyal customer base. This fee includes training, operational support, and marketing resources designed to ensure franchisees are well-prepared for success.

Initial Investment

The initial restaurant franchise cost for a Flying Biscuit Café franchise ranges from $766,750 to $1,171,350. This includes:

• Real estate acquisition or lease
• Construction and build-out costs
• Equipment and furnishings
• Opening inventory
• Working capital for the initial months of operation

This investment flexibility allows franchisees to tailor their expenditures based on location, size, and market conditions.

Proven Profitability

Flying Biscuit Café boasts a strong average unit volume (AUV) of $1.9 million, making it a significantly profitable choice for prospective franchisees. This impressive revenue potential highlights the brand’s popularity and operational efficiency, offering a high return on investment compared to many restaurant franchises.

Ongoing Fees

Flying Biscuit Café’s royalty and marketing fees are structured to provide ongoing support while ensuring franchisees retain a healthy share of their earnings. These fees contribute to:

• Continuous brand innovation and menu development
• National and local marketing campaigns
• Operational and business coaching

Shorter Operating Hours

Flying Biscuit Café offers shorter operating hours (typically 7 am to 3 pm) compared to many full-service restaurants. This not only reduces labor and utility costs but also provides franchisees with a better work-life balance, making the investment even more appealing compared to a lowest cost restaurant franchise.

What Sets Flying Biscuit Café Franchise Apart

Consistent Growth

Flying Biscuit Café has demonstrated remarkable resilience and adaptability, with five consecutive years of growth. The sustained growth trajectory is underpinned by strategic expansions, innovative menu offerings, and a commitment to operational excellence. Franchisees benefit from a well-established, thriving business model that provides a stable foundation for success in a competitive restaurant market.

Unique Southern-Inspired Menu

Flying Biscuit Café sets itself apart with its distinctive Southern-inspired menu, offering comforting and flavorful dishes that resonate deeply with customers. Signature offerings like the Dirty Bird Chicken & Waffle, award-winning shrimp and grits, and fresh-made biscuits with cranberry apple butter elevate the dining experience. This uniqueness not only differentiates the brand from generic breakfast and brunch competitors but also fosters brand loyalty and repeat business. 

Strong Franchisee Support

Flying Biscuit Café goes above and beyond to equip its franchisees with the strategic tools and knowledge needed for success. The brand provides a comprehensive support system that includes:

• Pre-Opening Training: Extensive education in operations, marketing, customer service, and management, ensuring franchisees and their teams are well-prepared before the first customer walks in.
• Real Estate and Construction Assistance: Expert guidance in selecting high-traffic locations and optimizing restaurant layouts for efficiency and customer appeal.
• Ongoing Operational Support: Dedicated support teams and access to proprietary systems help franchisees refine their operations, improve customer satisfaction, and maximize profitability.
• Marketing Resources: Access to proven marketing strategies and campaigns that drive brand recognition and foot traffic, both nationally and locally.

This infrastructure ensures franchisees are never alone in their journey. They will gain peace of mind and a solid foundation to build a thriving business at a competitive restaurant franchise cost.

Flexibility and Scalability

Flying Biscuit Café’s operational model is designed to accommodate diverse investor goals and lifestyles.

• Absentee Ownership Options: For entrepreneurs who wish to diversify their portfolios without direct involvement, the franchise offers a management-friendly structure that supports hands-off operations.
• Scalable Business Model: Franchisees looking to expand their footprint can easily transition to multi-unit ownership, leveraging the brand’s proven systems and support network to scale their success.

Notably, Flying Biscuit Café’s shorter operating hours (typically 7 am to 3 pm) not only reduce overhead costs but also provide franchise owners with a better work-life balance, a rare perk in the restaurant industry. This flexibility factor should be considered when you evaluate how much does it cost to franchise a restaurant.

Sustainable Returns on Your Restaurant Franchise Cost with Flying Biscuit Café

For entrepreneurs seeking a restaurant franchise that combines brand power, profitability, and strong franchise support, Flying Biscuit Café is a standout choice. With a proven business model, consistent growth, and a leadership team dedicated to franchisee success, this Southern-inspired brand offers an exceptional opportunity to build a thriving business. To learn more, give us a call today.