9 Most Expensive Franchises To Buy

Franchising a business is definitely more costly than building a new brand. But there are valid reasons for it. To begin with, you do not have to develop your own ideas. Franchising a reputable brand means everything is laid out in front of you. It even has its own loyal customers so you don’t need to worry about heavily marketing your business. 

According to experts, the industry known to have the highest cost for a franchise is hotel chains. This is due to real estate and development. Restaurant and fast-food chains are on the most expensive franchises list too. It is then followed by convenience stores.

We’re going to explore some of the most expensive franchises you can own and break down some of the costs for you.

1. DoubleTree 

DoubleTree opened its franchising opportunity in 1989. And after a decade, they were acquired by Hilton Hotels Worldwide. As for franchisees, this could mean that you can also benefit from the wide resources that Hilton Hotels have. They offer upscale accommodations in different regions including Canada and Latin America. Right now, the company has more than 500 properties in different locations.

Financial Requirements

• Investment: $22.8M – $79.2M
• Cost to Buy the Franchise: $75,000

2. Choice Hotels International

To date, there are more than 7,000 Choice Hotels worldwide. That alone is a testimony of how strong their system is in their industry. They also offer extensive services to all their franchisees. Local experts are available and provided by the franchise to assist new-comers serve their local market. Their terms of the agreement are good for 20 years. Choice Hotels also provide training programs, property management, and reservations systems.

Financial Requirements

• Net Worth Requirement: $750,000  
• Investment: $88,050 – $13.2M 
• Liquid Cash Requirement: $250,000 
• Cost to Buy the Franchise: $10,000 – $60,000  

3. Golden Corral

Golden Corral is a restaurant franchise that offers a wide variety of menu including steaks, seafood, chicken, pancakes, sausages, and bacon to name a few. It’s a family buffet and grill style restaurant thus, it has a wide market. The restaurant property usually requires ample parking space to accommodate their customers. Like other big franchisors, they require and offer training for managers and owners before the start of the operations. The initial franchise term is from the date of agreement execution until the 15th anniversary of the restaurant’s opening.

Financial Requirements

• Net Worth Requirement: $2.5M 
• Investment: $2.2M – $6.6M 
• Liquid Cash Requirement: $500,000 
• Cost to Buy the Franchise: $50,000 

4. McDonald’s

One of the most expensive fast-food restaurant franchises to own is McDonald‘s. It would be hard to name a country that does not have at least a branch of McDonald’s. It is so popular that you don’t need much for your marketing. Signage can do the heavy lifting for its franchisees. An initial down payment of 40% or 25% (of the total cost) is necessary for new and existing restaurants respectively. Mcdonald’s typically have third-party resources that offer to finance for equipment.

Financial Requirements

• Investment: $1.2M – $2.3M 
• Cost to Buy the Franchise: $45,000 
• Liquid Cash Requirement: $500,000 

5. Buffalo Wild Wings Grill & Bar

Buffalo Wild Wings Grill & Bar started offering franchises back in 1991 and we see no signs of slowing down in the coming years. While they are well-known for their buffalo wings, the restaurant offers a full menu. Expect an opening time of one year to 15 months. They require new franchisees to have experience in managing restaurants serving alcohol. Or, you must have a partner that will be responsible for the operations. If you need financing for your accounts receivables, startup costs, payroll, equipment, and inventory, the company has relationships with third-party sources that could assist you.

Financial Requirements

• Net Worth Requirement: $1.5M 
• Investment: $1.9M – $3.8M 
• Cost to Buy the Franchise: $40,000 
• Liquid Cash Requirement: $750,000    

6. 7-Eleven

Convenience stores are on the rise and that’s why more people are looking into 7/11′s franchising opportunity. There are a number of advantages when you choose to franchise this business. For one, 7-Eleven will pay for sewer, water, electric, and gas utilities. They will also pay for the rent and necessary real estate taxes. They now have around 69,000 stores globally.

Related reading: Complete breakdown of all the costs required to open a 7/11 franchise

Financial Requirements

• Net Worth Requirement: $100,000 – $250,000 
• Cost to Buy the Franchise: $100,000 -$1M (depending on the store’s gross profit) 
• Liquid Cash Requirement: $50,000 – $150,000 

7. Carl’s Jr.

Globally, there are around 1,100 Carl’s Jr. restaurants and they are still open for franchisees both in the US and in other parts of the world. Their potential franchisee is required to attend a 10-Day Operations Overview before entering any further agreement. They offer Veteran Incentives as well. Please note though that a franchisee may face competition from other outlets and other franchisees. 

Financial Requirements

• Net Worth Requirement: $1M 
• Investment: $1.5M – $2.1M 
• Cost to Buy the Franchise: $25,000 – $35,000 

8. KFC

You’ll find KFC franchises in the UK, China, Australia, Canada, and even the Philippines and Vietnam. That’s not surprising given their signature fried chicken recipe. And now, you can be your own colonel. According to reports, the KFC system serves 12 million customers in 17,000 restaurants every day. On average, a franchisee could generate more or less $950,000 in revenue per year.

Financial Requirements

• Net Worth Required: $1.5M 
• Investment: $1.3 – $2.5M 
• Cost to Buy the Franchise: $45,000
• Liquid Cash Requirement: $750,000  

9. Denny’s Inc.

Denny’s is a family-style restaurant franchise that’s already established a name for itself in the United States. The brand is widely recognized and often an easy choice for families looking for an affordable and family-friend atmosphere restaurant. Added with the budget-friend menu, Denny’s is an easy choice for most Americans. Franchise opportunities with Denny’s can be costly, however. similar to most other franchisors, Denny’s does offer an abundance of assistance to get your franchise set up and ready for business.

Financial Requirements

• Net Worth Requirement: $1M 
• Investment: $ 228,000 – $2.6M 
• Cost to Buy the Franchise: $10,000 – $40,000