In the United States, the official restaurant-franchise estimates cited here range from $199,135–$536,745 for a Subway restaurant to $1,470,500–$2,642,000 for a traditional McDonald’s. Those are brand- and format-specific estimates, not an industry average or a like-for-like comparison. Your actual capital need depends on the specific franchise, site, build-out and operating plan; use the current Franchise Disclosure Document (FDD) and a location-specific estimate to budget.
What the published investment ranges include
A franchise’s initial fee is only one part of its estimated investment. Startup budgets may also include property and construction or lease costs, equipment and décor, opening inventory, professional and pre-opening expenses, and cash reserves for early operations. The mix changes depending on whether you are opening a new site, converting premises, or buying an existing restaurant.
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These U.S. examples come from brand materials accessed in 2026; the cited pages or documents did not establish a publication or version year. Check the issue date and assumptions in the current disclosure for the opportunity you are considering.
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| Brand and opportunity | Published figure | What the figure means |
|---|---|---|
| Subway, U.S. restaurant | $199,135–$536,745 estimated initial investment; $15,000 initial franchise fee | Subway’s U.S. FAQ cites FDD Item 7 for the investment estimate. The fee is part of the total, not an additional total-cost estimate. Subway franchise FAQ |
| McDonald’s, traditional restaurant | $1,470,500–$2,642,000 total investment; $45,000 initial franchise fee | The fee is included in the FDD’s traditional-restaurant investment range. The FDD version year was not shown in the returned result. McDonald’s USA FDD |
| Chick-fil-A, initial franchise fee funding | $10,000 in non-gifted, non-borrowed funds | This is the funding requirement for the initial fee, not a verified total restaurant development cost. Chick-fil-A franchise information |
Do not compare these figures as though they describe identical premises or investment structures. The Chick-fil-A figure in particular is not a total startup estimate.
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What can make up the startup budget
McDonald’s franchisee guide offers an illustrative breakdown for a new traditional restaurant. It says the estimates are indicative and subject to change; actual costs are determined when a specific restaurant is offered to a qualified buyer. The guide’s publication year was not established in the returned result.
| Illustrative item | McDonald’s USA estimate |
|---|---|
| Initial franchise fee | $45,000 |
| Opening inventory | $20,000–$35,000 |
| Miscellaneous opening expenses | $45,000–$55,000 |
| Additional funds for three months | $250,000–$355,000 |
| Signs, seating, equipment and décor | $900,000–$1,500,000 |
These selected line items are not a substitute for the FDD’s broader investment range or a site-specific estimate. Ask which costs are included, which are paid to the franchisor versus third parties, and whether property work, deposits, pre-opening payroll and reserves are accounted for. See McDonald’s franchisee guide.
How much liquid capital may be required
A published total investment, a franchisor’s qualification threshold and the cash you need available are different measures. Qualification criteria below are specific to each brand and opportunity; they are not universal lending rules.
- Subway: Its U.S. FAQ states minimum financial requirements of $150,000 net worth and $100,000 in liquid assets per location. It says territory can change the requirements.
- McDonald’s: Its costs page says it typically requires at least $750,000 in non-borrowed, unencumbered personal funds for the purchase and operation of an existing restaurant. It recommends $100,000 working capital per restaurant and $75,000 additional funds for relocation. The company says these estimates apply to an existing restaurant; a new restaurant requires greater investment.
McDonald’s gives these existing-restaurant figures on its franchise ownership costs page; the page does not specify a year. Confirm current requirements directly for the exact offer.
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Budget for recurring costs, not just opening day
Ongoing fees affect whether a franchise is affordable after launch. The examples below are agreement-specific figures from the cited U.S. materials, not universal rates.
| Brand | Published ongoing charges | Important qualification |
|---|---|---|
| Subway | Royalty: 8% of gross sales; advertising: 4.5% of gross sales | Subway U.S. FAQ; confirm the current terms for the proposed agreement. Subway franchise FAQ |
| McDonald’s | Service/royalty fee: 4% of gross sales; advertising contributions: at least 4%; rent may include fixed and sales-based components | McDonald’s franchisee guide also notes other outgoing fees. Confirm current Item 6 and related FDD terms. McDonald’s franchisee guide |
Build a cash-flow plan that includes royalties, advertising, rent, debt service and operating reserves alongside the initial investment.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How to verify the cost for a specific opportunity
- Request the current FDD and proposed agreements. Review the investment and fee tables and check the document’s issue date.
- Confirm the format and property assumptions. Ask whether the estimate assumes a new build, conversion or resale, and what site work, equipment, inventory, deposits, payroll and reserves it includes.
- Separate franchisor charges from third-party costs. Ask who receives each payment and which amounts may vary by location.
- Model ongoing cash needs. Estimate recurring fees, rent, debt service and operating reserves separately from opening costs.
- Have an independent professional review the documents. The cited McDonald’s FDD says a buyer must receive it at least 14 calendar days before signing a binding agreement or making a payment in connection with the proposed sale. It also advises review with an advisor such as a lawyer or accountant. This is the timing statement in that FDD; confirm current federal and state requirements for your transaction and jurisdiction.
When comparing options, put them on the same basis: estimate date, new build versus existing or converted premises, required liquid capital, franchise fee, included construction and equipment, working-capital allowance, ongoing fees, real-estate terms, and location or territory requirements. Without those details, the available figures do not support a reliable affordability ranking.
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