How much money does it cost to own a chain restaurant such as Applebee's?

Question

I'm taking an Entrepreneur class in college and I was curious what the cost would be to own a chain restaurant or some other entertainment business such as Cinemark or Fandango. Thanks in advance

My bad, I need to specify more clearly. I want to buy into a business and possibly own only one store, not the whole chain. Sorry for the confusion.

Answer 1

For one store, you're likely looking at spending somewhere in the general region of 200 to 500 thousand dollars. The variation has a lot to do with location, the cost per square foot and the size of the building, perhaps also your ability to obtain equipment (new vs. refurbished or used, for example), and so on. The rest goes into franchise fees and other start up costs.

A grand chunk of money also pays for the name, you're looking at a store that's about as well known as Xerox, or McDonald's... Were you to spend some time researching and shopping around, I think you might find franchise fees drop considerably once you get away from the top of the line, thou you may wish to steer clear of the bottom of the barrel as well.

Good luck.

Answer 2

Obviously businesses can vary wildly in size. However, a large size restaurant chain would probably cost about $300 million, getting smaller as the number of restaurants decreases.

A company with about 50 medium to large restaurants could cost around $100 million, but completely dependent of turnover and profits per restaurant.

Answer 3

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