Starting a fast-food franchise can be a profitable business, but many well-known brands require hundreds of thousands—or even millions—of dollars to open. However, there are several low-cost fast food franchises that offer affordable startup costs, strong brand recognition, and good profit potential.
If you’re looking to own a fast-food business without breaking the bank, this guide highlights the most affordable fast-food franchise opportunities.
What Makes a Fast Food Franchise Affordable?
A low-cost fast food franchise should have:
✔ Low franchise fees – Many big brands charge $50,000+ upfront, but some cost much less.
✔ Affordable total investment – Some franchises require over $1 million, but budget-friendly options exist.
✔ Low royalty fees – Lower ongoing costs mean higher profits for you.
✔ Flexible locations – Some brands allow food trucks, kiosks, or small locations instead of expensive full-size stores.
If you’re looking for a budget-friendly way to enter the fast-food industry, here are some of the cheapest fast-food franchises to consider.
Best Cheap Fast Food Franchises Ranked
1. Chester’s Chicken – $12,385+ Total Investment
Chester’s Chicken is a fried chicken franchise that offers a low-cost, high-profit business model.
Why It’s Affordable:
- No franchise fee – You only pay for equipment and startup costs.
- Located in gas stations, convenience stores, and malls, reducing rent costs.
- Simple menu with high demand, focusing on fried chicken and sides.
💰 Estimated Total Investment: $12,385 – $295,000
💰 Royalty Fees: No traditional royalty fees
2. Baskin-Robbins – $93,550+ Total Investment
Baskin-Robbins is one of the cheapest ice cream franchises with a recognizable global brand.
Why It’s Affordable:
- Low franchise fee of $25,000.
- Smaller store sizes reduce real estate and build-out costs.
- Ice cream has low food costs and high profit margins.
💰 Estimated Total Investment: $93,550 – $401,800
💰 Royalty Fees: 5.9% of gross sales
3. Kona Ice – $140,350+ Total Investment
Kona Ice is a mobile shaved ice franchise, making it one of the most affordable and flexible food franchises.
Why It’s Affordable:
- No brick-and-mortar location needed—operates as a food truck.
- Low overhead costs with no rent, utilities, or high staffing needs.
- Strong seasonal demand and popular for events, schools, and fundraisers.
💰 Estimated Total Investment: $140,350 – $179,300
💰 Royalty Fees: No traditional royalties (fixed annual fee of $3,000)
4. Firehouse Subs – $189,574+ Total Investment
Firehouse Subs is a fast-casual sandwich chain with lower startup costs compared to many restaurant franchises.
Why It’s Affordable:
- Lower franchise fee than big brands like Subway.
- Smaller locations reduce real estate and build-out expenses.
- Focus on premium sandwiches with high-quality ingredients.
💰 Estimated Total Investment: $189,574 – $997,320
💰 Royalty Fees: 6% of gross sales
5. Checkers & Rally’s – $250,000+ Total Investment
Checkers & Rally’s is a drive-thru burger franchise known for low-cost startup models.
Why It’s Affordable:
- Smaller building footprint = lower rent and construction costs.
- Drive-thru focused, reducing the need for large indoor dining areas.
- Well-known for burgers, fries, and milkshakes—high-profit menu items.
💰 Estimated Total Investment: $250,000 – $1,431,000
💰 Royalty Fees: 4% of gross sales
6. Subway – $250,000+ Total Investment
Subway is one of the most affordable big-brand fast food franchises, making it popular among new franchisees.
Why It’s Affordable:
- Lower franchise fee ($15,000) compared to other major brands.
- Simple store layout with low equipment costs.
- Focuses on fresh ingredients with a customizable menu.
💰 Estimated Total Investment: $250,000 – $500,000
💰 Royalty Fees: 8% of gross sales
7. Freddy’s Frozen Custard & Steakburgers – $640,000+ Total Investment
Freddy’s is a fast-growing burger and frozen custard franchise with moderate startup costs.
Why It’s Affordable:
- Lower investment than McDonald’s or Burger King.
- Strong brand identity and customer loyalty.
- Focus on high-quality burgers, fries, and frozen custard.
💰 Estimated Total Investment: $640,000 – $2,000,000
💰 Royalty Fees: 4.5% of gross sales
8. Jimmy John’s – $355,900+ Total Investment
Jimmy John’s offers fast, fresh sandwiches with a simple menu and high-profit potential.
Why It’s Affordable:
- Lower real estate and equipment costs compared to full-service restaurants.
- Speed-focused business model, reducing labor costs.
- Strong franchise support and marketing.
💰 Estimated Total Investment: $355,900 – $671,400
💰 Royalty Fees: 6% of gross sales
How to Choose the Right Low-Cost Fast Food Franchise
If you’re considering starting a fast-food franchise, keep these factors in mind:
1. Consider Your Budget
- Look at total investment costs (not just franchise fees).
- Factor in royalty fees, marketing costs, and equipment expenses.
2. Pick a Brand with Strong Demand
- Look for high-traffic locations and brands with strong customer loyalty.
- Fast-food chains with simple, popular menus are easier to manage.
3. Choose a Business Model That Fits Your Lifestyle
- Food trucks (Kona Ice, Chester’s Chicken) have lower startup costs.
- Small retail locations (Baskin-Robbins, Subway) require less staff and space.
4. Check the Franchise Agreement
- Look for low royalty and advertising fees.
- Make sure the franchise offers training and support.
5. Think About Long-Term Growth
- Choose a franchise with room for expansion if you want to open multiple locations.
- Some franchises allow multi-unit ownership for greater profit potential.
Are Cheap Fast Food Franchises Worth It?
Yes! Affordable fast-food franchises offer a low-cost way to enter the food industry with less risk. While they may not make millions overnight, they provide a proven business model, brand recognition, and strong customer demand.
If you’re looking for a low-cost, high-profit business opportunity, consider franchises like Chester’s Chicken, Kona Ice, or Baskin-Robbins to start your entrepreneurial journey.
FAQs
What’s the cheapest fast-food franchise to start?
Chester’s Chicken and Kona Ice have the lowest startup costs, starting at $12,385 and $140,350, respectively.
Is Subway still a good franchise investment?
Yes, but it faces strong competition. With an investment of around $250,000, Subway remains one of the cheapest big-name franchises.
What’s the most profitable fast-food franchise?
McDonald’s and Chick-fil-A are the most profitable, but they have high startup costs.
Can I start a fast-food franchise with under $100,000?
Yes! Chester’s Chicken and Baskin-Robbins offer low-cost options under $100,000.
Now you know the cheapest fast food franchises—which one will you invest in? 🍔🚀
