In the business world, the franchised fast food industry has been a topic of interest for many entrepreneurs. In this article, we are going to delve into this sector, exploring different aspects such as the investment required, profitability, return on investment and other key indicators.
In addition, we will analyze two concrete examples: McDonald’s and Teriyaki Madness, to provide a more detailed view of the industry. Join!
Fast food franchises in the USA in numbers
Amount of investment in the fast food industry:
The investment required for a fast food franchise can vary significantly, from $250,000 to $3 million. This amount includes both the franchise fee and the operating costs to start the business.
Profitability of fast-food franchises in the United States:
On average, the profitability of a fast food franchise can range from 10% to 17%. However, this number is subject to a variety of factors, such as business structure and operating costs.
Average return on investment in fast food franchises:
The return on investment is usually between five and ten years, depending on the amount invested and other factors. It is important to consider this aspect when evaluating the viability of a franchise.
Average Billing Per Unit (AV):
AV is a key indicator of a franchise’s financial health. On average, it ranges from $300,000 to $600,000, although it can vary depending on the brand and location.
Examples of Fast Food Franchises
To illustrate these concepts, we’ll look at two popular franchises: McDonald’s and Teriyaki Madness.
McDonald’s Franchise in the United States
With more than 13,000 units in the United States alone, McDonald’s is one of the most recognized franchises in the world of fast food. The investment amount varies between $950,000 and $2.8 million, with a return on investment of approximately five years. McDonald’s AV is $2.9 million, reflecting its success in the market.
Teriyaki Madness Franchise in the USA
Teriyaki Madness is a growing Asian food franchise, with more than 150 units open. The investment amount ranges from $300,000 to $700,000, with a return on investment of six to seven years. Teriyaki Madness’ AV is $676,000, which shows its potential in the fast food market.
*Data as of the date of publication of this article
*Values expressed in US dollars
Advantages and disadvantages of investing in the fast-food industry
While the franchised fast food industry offers exciting business opportunities, it also has its challenges. Pros include brand recognition and growth potential. However, the cons include the high investment range, long payback time, and operational challenges associated with the sector.
If you are interested in exploring more about these or other investment opportunities, please do not hesitate to contact us. At Interlink FBC we are prepared to accompany you in the search and analysis of the franchise that best suits your business and immigration objectives. Contact us.
