Summary
Food franchises scale well across countries because the mechanics are stable — menu, line, staffing, delivery — but the cost field is local. U.S. neighborhood rents sit in the mid-$20s/sf/year, Canadian prime is higher, European/UK high streets can be several times that, and Gulf malls are premium. Add local wages, energy tariffs and 15–30% delivery commissions, and every project must be modeled per market.
A food franchise turns repeatable, everyday demand into a standardized operating model. Whether it’s burgers, chicken, coffee, bowls or casual dining, the underlying play is the same: engineer the menu so it moves through the line fast, match staff to the real dayparts, and keep delivery/pickup from blocking dine-in. For first-time buyers, franchise systems remove guesswork around recipes, equipment and training. For multi-unit operators, they make it possible to copy the same box across cities and even countries, as long as rent, labor and utilities are refreshed for each location.
The part that changes from country to country is not the format — it’s the price tag around it.
Regional cost picture
United States. Typical strip/lifestyle retail runs around the mid-$20s per sq ft per year. Good end-caps, drive-thru pads and tourist pockets are 2–3× that. Entry-level foodservice wages are mostly in the mid-teens per hour but some states and big metros sit higher, and long opening hours make utilities visible.
Canada. Major cities tend to be a bit pricier than the U.S. baseline once converted. Wages are broadly comparable, utilities are predictable, but equipment and some food imports can add to startup. You usually start near the top of the investment range.
Europe / UK. Prime, high-footfall streets in London, Paris, Milan or Amsterdam can be several times more expensive than neighborhood sites. Labor is more regulated and social charges add up. Delivery apps work off similar 15–30% commission tiers, so European units protect margin with daypart offers, tight menus and smaller boxes.
Gulf / Middle East. Malls, waterfronts and obvious tourist spots are premium, and operators often have service charges and fit-out standards on top of rent. On paper labor can look lower, but housing/visa/transport ends up in the real monthly bill. That’s why food concepts in the Gulf must be tested on local numbers, not on a U.S. template.
Investment and Fees
| Format / Model | Initial investment (range) | Franchise fee (range) | Ongoing fees (royalty / ad fund) |
|---|---|---|---|
| Kiosk / small box | $90,000 – $300,000 | $10,000 – $30,000 | 4–6% / 1–2% |
| Inline fast casual (counter) | $300,000 – $900,000 | $20,000 – $50,000 | 4–6% / 1–3% |
| Drive-thru pad / end-cap | $800,000 – $2,200,000 | $25,000 – $60,000 | 4–6% / 1–4% |
| Full-service (dine-in) | $900,000 – $2,500,000 | $30,000 – $60,000 | 4–6% / 1–3% |
| Ghost kitchen / mobile trailer | $60,000 – $200,000 | $10,000 – $25,000 | 4–6% / 0–2% |
These ranges “travel” between countries, but local building codes (hood, venting, grease traps), utility specs, equipment import and landlord standards can push a project to the upper band.
Startup and operating costs
Startup normally includes: leasehold build-out, floors and plumbing, hood/venting where required, the brand’s equipment package (fryers/grills/ovens or coffee/bar gear), refrigeration, smallwares, POS/KDS, signage, opening inventory, staff training and working capital.
Ongoing spend looks like this:
- franchise royalty and marketing contributions;
- labor (matched to real dayparts);
- food and packaging (with attention to volatile items — meat, dairy, produce);
- occupancy (rent, CAM, insurance, service charges);
- utilities (kitchen load + HVAC or long opening hours);
- delivery/app commissions at 15–30% on delivery and around 6% on pickup;
- maintenance and periodic capex.
Because food concepts are high-frequency and often low-ticket, the P&L is usually protected by three levers: throughput (orders per labor hour), average ticket (combos, add-ons, premium items) and real-estate efficiency (second-gen sites, right box for the trade area).
Formats and site strategy
Kiosk / small box. Lowest capex, good for captive footfall (malls, transit, office towers). Storage planning is the trick.
Inline fast casual. Compact FOH, strong pickup and delivery, easy to staff; works in dense trade areas.
Drive-thru. Convenience leader; success lives in access, car stacking and a protected handoff window.
Full-service. Higher check via experience, table service and beverages; more labor and licensing, so needs a stable trade area.
Ghost / mobile. Fastest to open, rent-efficient; visibility moves to apps, photos, promise times and events.
Operator profile
Most systems want owners with enough liquid capital to finish the build-out at local prices, a stable hiring/scheduling habit, and the discipline to run checklists and food-safety daily. Prior restaurant experience helps, but a good training and field-ops stack can close the gap quickly. For international or multi-country projects there are four mandatory checks before signing: real rent (not marketing rates), current local wages, energy tariffs for your exact equipment load, and delivery-platform terms.
What to tell buyers directly
- Price the project on the country you’re opening in, not on a U.S. brochure.
- Pull current utility tariffs if the concept runs hot kitchens or long hours.
- Keep delivery as a revenue channel, not the main margin channel.
- Favor second-gen sites where possible — they compress capex and timelines.
- Plan an opening marketing ramp; footfall does not appear by itself.
Testimonials
I am very grateful to the Topfranchise team. Thanks to the platform www.topfranchise.com I sold a Master franchise to Pakistan this year!
So far, we have been pleased and treated as valued customers providing discounts to advertising packages in the English and the Russian version of the company.
We move forward into 2022, with the assurance of having TopFranchise as a valued advertising
partner in expanding the Mikel Brand even further.
A few years ago we decided to start the global expansion, so we started looking for ways how to find our new franchisees. Last year we noticed the Topfranchise.com marketplace.
Since the time we got listed here, our Franchise pitch has been visited by thousands of people, and a couple of hundreds had left their requests. I would like to share a success story. We received the lead from Topfranchise.com. It was a potential franchisee from the USA, who was interested in becoming a part of our company. Today he operates as our Franchisee in Grove town, USA.
At Topfranchise.com we have a manager, who keeps track of our success. If something goes wrong, we can be sure to receive advice. For the extra advertisement, we used newsletters and banners, which helped to attract more potential franchisees.
We express our gratitude to the TopFranchise.com team for their professionalism.
We get a lot of leads performing well as a potential franchisees. We are glad that we have chosen TopFranchise.com as a partner and look forward to further fruitful cooperation.
Cleaning service is now available in Cyprus for houses, apartments and small offices.
Thanks to the Topfranchise team!
After all the preparations and settings, the result came up very soon. Customers do not hesitate to contact us , and we find them reliable. It is wonderful work for Topfranchise.com.
In the time I have been with them I have had a good response, with leads coming in from every corner of the world and from countries you would not expect to get enquiries.
I decided in April this year to increase my budget to get more leads from overseas and explored other websites with an international exposure, but eventually I decided to spend my money with TopFranchise because of the quality of the service they provide. I invested in newsletters and banner listings with them which provided even more leads.
To date the investment I made with TopFranchise has been repaid with lead convertions.
Topfranchise is so helpful. They help us to find customer from different countries. After we discussed with customers the possible cooperation, we realized that customers from Topfranchise.com have a great potential and strong financials that can help to improve our brand.