10 Best Food Franchise Business in US - 2022

Thinking of starting your own restaurant but not confident about how to build your restaurant brand? Starting your entrepreneurial journey by investing in a good food franchise can be a smart move. But why invest in a food franchise?

Food franchise opportunities are a complete package deal. You get ready-to-use marketing collateral, brand legacy, high brand awareness, and business support from the franchisor. Imagine becoming a franchisee of a Subway, Dunkin', or Popeyes. These are a few of the most sought-after brands, and a decent footfall is likely the day you open your doors.

Franchise business in the US

The US franchise industry is known for its many fast food chains. According to Statista, the economic output from franchise businesses in the US was about $790 billion in 2021, and nearly 8 million people in the US work in the franchise industry. With McDonald's leading among food franchises and many others on the list, you have a wide range of food franchise businesses to choose from as you begin your journey as a restaurateur.

Making a foray into the restaurant business by investing in a food franchise has several benefits. First, you build on a franchisor's recognizable brand while running operations yourself. Second, well-established franchises tend to have higher success rates than brand-new restaurants. Third, many of the risks and uncertainties of starting from scratch are reduced in a franchise model. We will cover more benefits later.

For now, let's focus on the criteria a potential investor should use to evaluate a franchise.

Evaluating a franchise opportunity

Acquiring a franchise comes with a cost. The first and most important factor is your financial affordability. You may be dreaming of a McDonald's franchise, but it may not be possible within your budget. So, as with everything else, your budget and affordability matter. This is the first step in helping you narrow down the franchises you can choose from. Other factors to weigh when evaluating a franchise opportunity are:

• Franchise fees and initial set-up costs.
• Past financial statements, the number of new franchise locations opened, and the success rate, to get a sense of profitability.
• The support system for franchisees.
• Minimum lock-in period. McDonald's, for example, grants franchise rights for a minimum of 20 years.
• Available areas. Franchisors want to expand their business, increase their presence, and gain better visibility. Not all areas where they plan to open will be equally lucrative. Two locations may sit close together, or you may be offered an area where demand for fast food is lower.
• Brand recall value. Is the franchise a popular brand? Do people recognize it? Does it carry aspirational value? If not, investing in it carries similar uncertainty to starting a new restaurant with no brand recognition. A well-established franchise, on the other hand, carries high initial costs that affect profitability. An opportunity that is less established but still has some recognition can be a strong franchise investment.

Now that you have a sense of how to evaluate a franchise opportunity, let's look at some of the US food franchise businesses worth considering.

1. McDonald's

No prize for guessing why it tops our list. McDonald's is one of the most popular fast-food restaurants in the world, and the large majority of US locations are owned and managed by franchisees.

• One-time franchise fee: $45,000.
• Initial investment: $1 million to $2.2 million.

Many McDonald's franchises are owned by women and minorities.

2. KFC (Kentucky Fried Chicken)

KFC, started by Colonel Sanders, carries a lot of nostalgic value and is one of the most recognized and popular American fast-food chains.

• Initial franchise fee: $45,000.
• Initial investment: $1.4 million to $2.7 million.

KFC has a strong business model and a solid franchise support system, which makes it one of the more reliable and profitable franchises to own. It also has rigorous financial qualifications. An applicant for a KFC franchise must have a net worth of $1.5 million and $750,000 in liquid assets.

3. Dunkin'

One of the most-loved donut brands in the world, Dunkin' operates in over 12,400 locations spread across 41 states and 46 countries.

• One-time franchise fee: $40,000 to $90,000 (differs from state to state).
• Initial investment: $95,700 to $1.5 million.

Though the initial investment for a Dunkin' franchise is quite high, the company offers a 20% discount on the initial franchise fee if you sign a Store Development Agreement for five stores at once.

4. Pizza Hut

You would be surprised to learn that Pizza Hut is one of the largest pizza companies in the world, with over 18,341 outlets around the globe.

• One-time franchise fee: $25,000.
• Initial investment: $357,000 to $2.2 million.

Pizza Hut provides training, marketing, and new location opening support.

5. Popeyes

Popeyes is a well-known brand in the fast-food franchise segment. Started in 1972 in Miami, Florida, Popeyes has over 3,705 outlets.

• One-time franchise fee: $50,000.
• Initial investment: $384,000 to $2,620,800.

6. Taco Bell

A popular Mexican fast-food chain, Taco Bell started back in 1962. Of its 7,791 restaurants, the large majority are franchise-owned. Now owned by Yum! Brands Inc., Taco Bell has a global following.

• One-time franchise fee: $25,000 to $45,000.
• Initial investment: $525,525 to $2.8 million.

To get more information about a Taco Bell franchise, you need to fill out an application online, as not much is available in the public domain.

7. Cinnabon

Started in Seattle, Washington in 1985, Cinnabon has grown into a popular bakery franchise and made cinnamon buns with cream cheese a global favorite. The brand now has more than 1,500 outlets around the world.

• One-time franchise fee: $30,000.
• Initial investment: $230,000 to $545,000.

Cinnabon franchise formats include a full bakery, a kiosk bakery, a co-brand store, and a co-brand kiosk. There is a minimum lock-in of 20 years.

Ice cream and dessert brands

8. Baskin-Robbins

Started in 1945, Baskin-Robbins now operates 2,500 locations in the US alone and more than 7,500 storefronts around the world.

• One-time franchise fee: $25,000.
• Initial investment: $94,350 to $402,200.

The financial investment varies by location and by the type of Baskin-Robbins store you plan to open, whether a traditional storefront or a kiosk.

9. Dairy Queen

Operating for 80 years, Dairy Queen is one of the oldest and most established names on this list in America and beyond. Dairy Queen has over 6,800 restaurants across the US, Canada, and 27 more countries.

• One-time franchise fee: $45,000.
• Initial investment: $1 million to $1.8 million.

No prior experience in restaurant management? Not a problem. You can hire someone with relevant experience to help run a Dairy Queen franchise.

10. Cold Stone Creamery

A relatively newer entrant compared to Dairy Queen or Baskin-Robbins, Cold Stone Creamery has been around for more than 30 years. The brand has over 1,000 outlets in the US alone and a presence in some 30 countries.

• One-time franchise fee: $10,000 to $27,000.
• Initial investment: $53,200 to $468,775.

Cold Stone Creamery has aggressive expansion plans over the next few years.

Signing off

You may choose one of our top picks or go with another popular franchise brand that is not on this list. Whatever you choose, evaluating it carefully and building a transparent, trustworthy relationship with the franchisor is the key to running a successful franchise business.