How much does In and Out Franchise Cost?
Let’s cut to the chase: In-an-Out doesn’t offer franchising opportunities. The restaurant company itself owns all the locations of In-and-Out restaurants.
So, there’s no way you can start a burger franchise when the company itself doesn’t provide any options.
However, that shouldn’t stop you from starting your burger franchise. You can take franchise options from other restaurant companies that sell their franchise. In that case, you have to start by identifying the range of expenses a small burger franchise requires of you.
Franchise fees for burger restaurant franchises range from $25000 to $55000. The initial investment for a burger franchise also costs around $500000 to $2.2 million.
Both the fees and the initial investment will vary depending on the restaurant franchise someone is purchasing. In this article, we have explained why you can’t buy an In-N-Out franchise. Read on for details.
Other Burger Restaurants
Yes, you can’t open an in-n-out burger franchise. Should that stop you from starting your own restaurant franchise?
No.
Then, what options do you have left? Well, you can try other famous restaurants that offer franchises. And the list is quite a bit. We can start with McDonald’s, Wendy’s, Whataburger, and plenty more.
If you were considering In-an-out burger due to the brand recognition, then there are other franchisors that also provide similar benefits.
But, before you choose from any of the other options, consider the fee structure and the profit margin you have from any of those restaurants. It would help to start by finding the franchising options you have available in your location.
Some states have a higher number of specific restaurant franchises, while some states lack those franchises in high density.
In-N-Out Franchise Alternatives
Since there’s no franchise option for In-N-out restaurants, business owners can try other options. We have found some good alternatives that may help. Keep reading to find out –
| Franchise Name | Initial Franchise Fee | Initial Franchise Cost | Liquidity requirement | Ongoing Fees |
|---|---|---|---|---|
| McDonald’s | $45,000 | 25% for existing restaurants. 40% for new restaurants. | $500,000 | Royalty Fee: 4% or 5% of gross sales Advertisement fee: it’s currently 4.3% of net sales |
| Red Robin | $35,000 | $100,000 and $300,000. | $500,000 | Royalty Fee: 4% of gross sales Advertisement fee: 2% of gross sales |
| Wendy’s | $50,000 | $310,000 to $2,829,000. | $500,000 | Royalty Fee: 4% of net sales Advertisement fee: 4% of gross sales. |
| Hardee’s | $25,000 | $1,375,000 to $2,637,395 | $300,000 | Royalty Fee: 5% of gross sales Advertisement fee: 4% of gross sales. |
| Killer’s | $40000 | 461,500 to. $849,000 | Royalty Fee: 5% of gross sales Management Service fee: 5% of gross sales. | |
| Burger King | $50,000 | $4,520,900 | $500,000 | Royalty Fee: 4.5% of gross sales Advertisement fee: 4% of gross sales. |
| Fat Shack | $25000 | $74,450 – $229,050 | $15,000 | Royalty Fee: 6% Advertisement fee: 4% to 6% of their royalty fees. |
| Whataburger | $20,000 to $50,000. | 1.2 million | $5 M | Royalty Fee: 5%. Advertisement fee: 5% |
| Jack in the Box | $50,000 | $1,810,600 – $4,207,500 | $500,000 | Royalty Fee: 5%. Advertisement fee: 5% |
Opt for Affordable Fast Casual Restaurants
You can opt for fast-casual restaurants that are affordable and are rising in the USA market. This way, not only will you start an affordable franchise, but you also will partner with a brand’s growth journey.
There are many new franchisors that serve the best quality burgers while also making their franchisees feel like a part of a family.
Wayback Burger
Wayback Burger is a restaurant that makes its franchisees feel like family. Most importantly. You can still start a franchise even if you haven’t made your 1 million yet. So, if you are worried about net worth getting in the way of your restaurant franchise dream, there’s hope.
Slater’s 50/50
If you want to go for something even easier, then Slater’s 50/50 isn’t a bad option. Their positioning is Burgers, Bacon & Beer.” The liquid cash requirement for this franchise ranges between $250,000 and $600,000 as per different sources.
Teddy’s Bigger Burger
No, you don’t necessarily have to spend millions to start your burger franchise, and Teddy’s Bigger Burger franchise is here to confirm that. It will take only around $350,000 – $500,000 to start your burger franchise with Teddy’s Bigger Burger.
Your customers would love the sandwiches, burgers, and various other menus with both chicken and veggie options.
Hwy 55 Burgers
It only takes $25000 for the franchise fees for the HWY 55 burger franchise. If you want to start a regular franchise, the initial investment would be around $125,000.
Starting a Burger Franchise: Financing Option
It’s difficult for small business owners who are yet to hit their 1 million net worth to start a burger franchise. But it’s not impossible. While burger companies may not provide franchising options directly, they can help business owners find sources.
Some restaurants help franchisees with financing resources, thereby helping them secure funding. Most funding sources are from banks or from financial lenders who offer loans.
Portman Financing Group:
If you are planning to start a Burger King franchise, you can secure asset finance, franchise loans, and more. It also helps secure loans for commercial vehicles.
Biggies Burger ‘N’ More:
Franchise owners can get financial assistance from this place.
SBA-Backed Loan:
If you are a first-time business owner, you can opt for SBA-backed loans. These are loans with lower down payment requirements. So, you’ll operate in a field with reduced risks, have easier access to capital, and get a Lender through a Lender Match.
Conventional Loan:
Experienced business owners would benefit from conventional loans. If you are a multi-unit business owner, then these loans provide a faster turnaround compared to SBA-backed loans.
Self-Financing:
Business owners can self-fund their business with 401K/IRA assistance or through a business partner.
In and out franchise cost: will they go out for franchising?
Till today, In-N-Out has repeatedly confirmed that they are never going out for franchising. So, if you had specifically planned to own their franchise, it’s bad luck. All the locations of this restaurant are company-owned and operated by the company itself.
You can only purchase franchises from other restaurants. Here are several key policies of In-N-Out Burger you must remember –
No Franchising Policy:
Their leadership team has been insisting on never allowing franchising.
Company-Owned Stores:
All the stores are operated and owned by the company itself. They aren’t planning on letting franchise partners handle their stores.
In-N-Out has always made its point of not franchising its restaurant for quality control purposes. They are very strict about maintaining every aspect of the customer’s experience at In-N-Out.
Therefore, if you are an aspiring businessperson with hopes to start a restaurant franchise, look for other options. You can go for the ones we have mentioned in this article.
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