Have you ever wondered how much it would cost you to open your own Subway, McDonald’s or other fast food restaurant? Compared with other fast food restaurant chains, Subways have a relatively low start-up cost.
Subway requires franchisees to have liquid assets of at least $30,000, compared to McDonald’s which requires it’s franchisees to have at least $750,000 in liquid assets.
And Subways are relatively cheap to open. Including construction and equipment leasing expenses, initial capital requirements are about $116,200 to $262,850, according to the company.
Yet, there’s a trade off. While the cost of opening a McDonalds is significantly higher, as much as $2.3 million, it can generate as much as $2.5 million in annual revenue. A Subway restaurant, on average, generates only $490,000 in annual revenue.
But Subway is not the only franchise with low start-up cost. Search the BizBuySell Franchise Directory and you’ll find many franchises with capital requirements starting at just $25,000.