Cheapest Restaurant Franchises to Open in 2026: Costs, Fees and Royalties
Chester's Chicken from $27,500, Domino's from $107,450, Kona Ice from $114,730: 2026 FDD costs, fees and royalties for 9 cheap food franchises, plus Spain.
By The Menumigo TeamUpdated October 14, 202613 min read
Short answer: The cheapest restaurant franchise to open in the US in 2026 is Chester's Chicken, from $27,500 in total initial investment, because its units sit inside convenience stores and supermarkets. Next come Domino's non-traditional stores from $107,450 (open only to people who have managed a Domino's store), Kona Ice trucks from $114,730, Cold Stone Creamery non-traditional units from $120,700 and Papa John's non-traditional units from $125,000. In Spain, Telepizza lists €100,000–€300,000. Figures come from 2025 and 2026 franchise disclosure documents, checked in October 2026.
Key takeaways
- The franchise fee is a small part of the cost. Build-out, equipment, rent deposits and working capital make up most of the initial investment.
- Royalties and marketing fees are charged on sales, not profit. At €500,000 in sales, 6% royalty + 4% marketing is €50,000 a year.
- In the US, the Franchise Disclosure Document (FDD) must reach you at least 14 calendar days before you sign or pay. Items 5, 6, 7, 19 and 20 are the ones to study.
- Spain, France and Italy also require pre-contract disclosure (20, 20 and 30 days before signing). Portugal and Turkey have no franchise-specific disclosure law.
- The cheap entry point is usually a non-traditional format (a counter inside another business, a truck, a kiosk). At Domino's, Cold Stone Creamery and Papa John's, a standalone restaurant starts at more than twice the non-traditional price.
- Ongoing fees matter as much as the entry price. On the list below, royalty plus marketing runs from 6.5% to 13% of sales for brands that charge a percentage.
- Figures change every year. Verify every number in the franchisor's current disclosure document before deciding.
In this guide
- What a franchise really costs
- What are the cheapest restaurant franchises in the US?
- What are the cheapest restaurant franchises in Spain?
- Which formats are cheapest?
- What disclosure do you get before signing?
- How do you evaluate a cheap franchise?
- Franchise or independent?
- FAQ
What does a restaurant franchise really cost?
A restaurant franchise costs the franchise fee plus build-out, equipment, rent deposits, opening stock and working capital, and then a royalty and marketing fee on every sale for the length of the contract.
| Cost | What it is | When you pay |
|---|---|---|
| Initial franchise fee | Right to use the brand and system, plus initial training | At signing |
| Build-out and fit-out | Construction, décor, signage to brand standards | Before opening |
| Equipment | Kitchen, POS, furniture, often from approved suppliers | Before opening |
| Real estate | Rent deposits, key money, legal fees | Before opening |
| Opening inventory | First stock of food, packaging and uniforms | Before opening |
| Working capital | Cash to cover losses for the first months | First 3–6+ months |
| Royalty | A percentage of gross sales, or sometimes a flat fee | Weekly or monthly, for the whole contract |
| Marketing fund | A percentage of sales for brand advertising | Weekly or monthly |
| Technology fees | POS, app, loyalty and online ordering systems | Monthly |
| Renewal and transfer fees | Charged to renew or sell the franchise | End of term or on sale |
Royalty example:
Annual gross sales: €500,000
Royalty 6% = €30,000
Marketing fund 4% = €20,000
Total ongoing fees: €50,000 a year, before rent, staff, food or any profit
What are the cheapest restaurant franchises in the US?
The table lists nine well-known food franchises with a low entry point, sorted by the bottom of their total estimated initial investment (Item 7 of the Franchise Disclosure Document). Where a brand has a cheaper non-traditional format, both ranges are shown. Ranges are wide because they cover different sites and sizes. Always check the current FDD.
| Franchise | Concept | Total initial investment | Franchise fee | Royalty | Marketing / ad fund | FDD year |
|---|---|---|---|---|---|---|
| Chester's Chicken | Fried chicken counter inside convenience stores and supermarkets | $27,500–$301,500 | $0 listed | None listed | $200 per quarter | 2026 |
| Domino's Pizza | Pizza delivery and carryout | Non-traditional $107,450–$709,500; traditional $231,450–$743,500 | $0–$10,000 | 5.5% | 4% | 2026 |
| Kona Ice | Shaved ice truck | $114,730–$228,601 | $15,000 | $3,000–$5,000 a year (flat) | $1,000 a year | 2026 |
| Cold Stone Creamery | Ice cream | Non-traditional $120,700–$507,275; traditional $335,675–$655,275 | $12,000–$27,000 | 6% | 3% | 2025 |
| Papa John's | Pizza delivery and carryout | Non-traditional $125,000–$423,302; standard $281,485–$890,267 | $5,000–$25,000 | 5–6% | 1.5–6% | 2026 |
| Subway | Sandwiches | Non-traditional $227,000–$458,000; single restaurant $263,000–$630,000 | $15,000 | 8% | 4.5% | 2026 |
| Baskin-Robbins | Ice cream | $307,400–$622,600 | $25,000 | 5.9% | 2.5–5% | 2025 |
| Wingstop | Chicken wings | $310,400–$1,048,500 | $25,000 | 6% | 5.5% | 2026 |
| Little Caesars | Pizza carryout | $376,500–$1,769,200 | $20,000 | 6% | 7% | 2026 |
Figures as summarised from each brand's FDD by FranchisePayback, checked 14 October 2026.
Reading the table:
- Lowest entry cost: Chester's Chicken, because it operates inside existing convenience stores and supermarkets rather than standalone restaurants. Its 2026 FDD summary lists no initial franchise fee and no percentage royalty, only a $200 quarterly brand fund fee.
- Domino's is cheap on paper but not open to everyone. In the US, only people who have successfully managed a Domino's store for at least a year can apply for a franchise.
- Flat royalty: Kona Ice charges a fixed annual royalty rather than a share of sales, which favours high-revenue operators.
- Highest combined percentage fees on this list: Little Caesars (6% royalty + 7% advertising, 13% of sales) and Subway (8% + 4.5%, 12.5%).
- Liquidity and net worth requirements are separate from the investment range. Check them in the FDD before you apply.
What are the cheapest restaurant franchises in Spain?
Spain has no FDD. Figures come from franchisors' profiles in the franquicia.net directory, so ask for the full pre-contract disclosure document before relying on them.
| Franchise | Concept | Initial investment | Entry fee (canon de entrada) | Royalty | Marketing fee | Contract |
|---|---|---|---|---|---|---|
| Telepizza | Pizza delivery | €100,000–€300,000 depending on format | Varies by format | 6% | 4% | 10 years |
| 100 Montaditos | Beer hall and mini-sandwiches | Fit-out of premises + entry fee | €40,000 + VAT | 7% of monthly sales | None listed | 10 years, renewable, premises from 120 m² |
Both profiles were checked on 14 October 2026. For Portugal, France, Italy and Turkey, look up current figures in your national franchise association's directory, and always get the franchisor's disclosure document.
Which restaurant franchise formats are cheapest?
The cheapest formats skip most of the build-out: non-traditional units inside another business, kiosks, trucks, and small delivery or carryout kitchens.
| Format | Why it's cheaper | Trade-offs |
|---|---|---|
| Non-traditional units inside convenience stores, petrol stations, supermarkets, airports, universities | Host provides space, utilities and foot traffic | Limited menu, revenue share or rent to the host, limited control |
| Kiosks and carts | Small footprint, minimal build-out | Weather, mall rules, low average spend |
| Mobile trucks and trailers | No lease or fit-out | Permits, parking, seasonal income |
| Delivery and carryout (pizza, wings) | Small kitchens, little or no dining room | Delivery costs, marketplace commissions |
| Coffee-to-go | Small counter, simple equipment | Intense competition, low ticket size |
| Conversion franchises (rebranding an existing restaurant) | Uses your existing premises and equipment | Must fit brand standards, and there's a cost to refit |
What disclosure do you get before signing a franchise?
In the US you get a Franchise Disclosure Document at least 14 calendar days before you sign or pay. Spain, France and Italy also require pre-contract information, 20 to 30 days before signing.
| Country | Franchise disclosure requirement |
|---|---|
| USA | FTC Franchise Rule: the franchisor must give you the Franchise Disclosure Document at least 14 calendar days before you sign or pay. Some states add registration requirements. |
| Spain | Ley 7/1996 (Retail Trade Act), article 62: the franchisor must provide pre-contract information at least 20 days before signing or any payment. |
| France | Loi Doubin (Code de commerce, article L330-3): a pre-contract information document (DIP) at least 20 days before signing or any payment. |
| Italy | Legge 129/2004: the franchisor must deliver the contract and required information at least 30 days before signing. |
| Portugal | No franchise-specific disclosure law. Contracts fall under general civil and commercial law, so rely on a lawyer's due diligence. |
| Turkey | No franchise-specific disclosure law. General contract (Turkish Code of Obligations) and competition rules apply. |
This is a summary, not legal advice. Have a franchise lawyer review every contract.
How do you evaluate a cheap franchise?
Read the fee, investment and outlet sections of the disclosure document, call current and former franchisees, and run the numbers on pessimistic sales.
Read these FDD items (US)
| Item | What it tells you |
|---|---|
| Item 5: Initial fees | Exactly what you pay at signing |
| Item 6: Other fees | Royalties, marketing, technology, training, renewal and transfer fees |
| Item 7: Estimated initial investment | The full cost range, line by line |
| Item 19: Financial performance representations | Any sales or profit figures the franchisor chooses to disclose |
| Item 20: Outlets and franchisee information | Openings, closures, transfers and contact details of current and former franchisees |
| Item 21: Financial statements | Whether the franchisor itself is financially healthy |
Questions to ask current and former franchisees
- How long did it take to break even?
- What did opening really cost compared with the Item 7 range?
- What do you pay each month in fees beyond royalty and marketing?
- How good is the training and ongoing support?
- Would you buy this franchise again?
- (Former franchisees) Why did you leave?
Red flags
- Many closures or transfers in Item 20
- No financial performance information and vague answers about typical sales
- Pressure to sign quickly, or to pay before the disclosure period ends
- Mandatory suppliers at above-market prices
- Territory rights that are vague or missing
- Royalty on sales from day one with no support during opening
Do the maths
Expected annual sales
− food and packaging costs
− staff costs
− rent and utilities
− royalty and marketing fees (on sales)
− technology, insurance, accounting
− loan repayments
= what you actually earn
Build three versions (pessimistic, realistic, optimistic) and make sure you can survive the pessimistic one.
Franchise or independent restaurant?
| Franchise | Independent | |
|---|---|---|
| Brand recognition | From day one | Built from zero |
| Upfront cost | Franchise fee + build-out to brand standards | Build-out to your own budget |
| Ongoing fees | Royalty + marketing, 6.5–13% of sales on the list above | None |
| Menu and suppliers | Set by the franchisor | Your choice |
| Training and systems | Provided | You create them |
| Flexibility | Limited | Full |
| Exit | Transfer subject to franchisor approval | Sell on your terms |
An independent café or small restaurant can cost less upfront than many franchises and carries no royalty. In exchange, you create the brand, menu and systems yourself.
How Menumigo fits
Franchise brands usually set their own menu and ordering technology, so check your franchise agreement before adding any tool.
For independent operators, and franchisees whose agreement allows it, Menumigo provides:
- A digital menu reachable by QR code, in 20+ languages, with allergen tags for all 14 EU allergens
- A free plan for one venue, and Pro at €19/month (€15/month billed yearly), with each extra venue at €9/month
- Free tools to cost dishes and set menu prices
If you're opening your own place instead, start with restaurant menu ideas and café name ideas.
FAQ
What is the cheapest restaurant franchise to open?
Chester's Chicken is the cheapest well-known restaurant franchise to open in the US, with a total initial investment from $27,500 in its 2026 disclosure document, because it operates inside convenience stores and supermarkets. Domino's non-traditional stores start at $107,450 but are only open to experienced Domino's managers, and Kona Ice trucks start at $114,730.
What is the cheapest restaurant to franchise?
Among big brands, the cheapest way in is usually a non-traditional unit, such as a counter inside a store, campus or travel centre. Domino's, Cold Stone Creamery and Papa John's all have non-traditional formats starting between $107,450 and $125,000, against $231,450 or more for their standalone restaurants.
How much does it cost to open a food franchise?
On the list above, total initial investment runs from $27,500 for Chester's Chicken to $1.77 million at the top of Little Caesars' range, and franchise fees run from $0 to $25,000. Most of the money goes on build-out, equipment, rent deposits, opening stock and working capital rather than the fee.
What is the cheapest franchise in Spain?
Among well-known restaurant brands in Spain, Telepizza lists a total investment of €100,000 to €300,000 depending on the format. 100 Montaditos charges an entry fee of €40,000 plus VAT on top of the fit-out of premises from 120 m². Kiosk and coffee-to-go formats can cost less, so compare several franchisors' disclosure documents.
What fees do franchise owners pay every month?
Most pay a royalty (usually a percentage of gross sales, sometimes a flat fee) and a marketing or advertising fund contribution, plus technology fees. On the US list above, combined royalty and marketing percentages range from 6.5% to 13% of sales, while Chester's Chicken and Kona Ice charge flat fees instead.
What is a Franchise Disclosure Document?
A Franchise Disclosure Document (FDD) is the legal disclosure US franchisors must give prospective franchisees at least 14 calendar days before signing or payment, under the FTC Franchise Rule. It has 23 items, including fees, total investment, financial performance, outlet openings and closures, and audited financial statements.
Is a franchise better than opening an independent restaurant?
A franchise offers a proven brand, systems and training, but charges ongoing royalties and limits your control over menu and suppliers. An independent restaurant has no royalties and full flexibility, but you build the brand and systems yourself. Compare both using realistic sales and cost projections.
Sources
- FranchisePayback, Chester's franchise (2026 FDD, Item 7 total $27,500–$301,500). https://www.franchisepayback.com/franchise/chesters
- FranchisePayback, Domino's franchise (2026 FDD). https://www.franchisepayback.com/franchise/dominos
- FranchisePayback, Kona Ice franchise (2026 FDD). https://www.franchisepayback.com/franchise/kona-ice
- FranchisePayback, Cold Stone Creamery franchise (2025 FDD). https://www.franchisepayback.com/franchise/cold-stone-creamery
- FranchisePayback, Papa John's franchise (2026 FDD). https://www.franchisepayback.com/franchise/papa-johns
- FranchisePayback, Subway franchise (2026 FDD). https://www.franchisepayback.com/franchise/subway
- FranchisePayback, Baskin-Robbins franchise (2025 FDD). https://www.franchisepayback.com/franchise/baskin-robbins
- FranchisePayback, Wingstop franchise (2026 FDD). https://www.franchisepayback.com/franchise/wingstop
- FranchisePayback, Little Caesars franchise (2026 FDD). https://www.franchisepayback.com/franchise/little-caesars
- Domino's careers site, assistant manager listing (checked 14 October 2026): "Our exclusive Management Development Program allows only our own store managers to apply for franchising opportunities" and "Eligibility requires successfully managing a Domino's Pizza store for at least one year." https://jobs.dominos.com/us/jobs/6f389ede-2b8a-4756-8f04-14d6ee9e8962/assistant-manager-4209-450-s-battlefield-blvd/
- Franquicia.net, 100 Montaditos franchise profile. https://www.franquicia.net/sector/franquicias-de-hosteleria-y-restauracion/100-montaditos/
- Franquicia.net, Telepizza franchise profile. https://www.franquicia.net/sector/franquicias-de-hosteleria-y-restauracion/telepizza/
- US Federal Trade Commission, Franchise Rule (16 CFR Part 436). https://www.ftc.gov/legal-library/browse/rules/franchise-rule
- Ley 7/1996, de 15 de enero, de Ordenación del Comercio Minorista, article 62 (Spain). https://www.boe.es/buscar/act.php?id=BOE-A-1996-1072
- Legge 6 maggio 2004, n. 129 (Italy). https://www.gazzettaufficiale.it/eli/id/2004/05/24/004G0160/sg