Forget Chick-fil-A and McDonald's: Owning this franchise could be more profitable

By Renwick WilsonFood and BeverageFOXBusiness

Food Network’s Willie Degel to bite into franchising and possible IPO

Despite the struggling food industry, former Food Network star and CEO of Uncle Jack’s Steakhouse Willie Degel says now is the time to expand. From franchising to talks of an IPO, the celerity restaurateur shares his recipe for success.

For many of America’s top fast food chains, becoming a franchisee can be both difficult and costly. Chick fil-A is well known for how difficult it is to become a franchisee, while McDonald’s is known for how expensive the franchising process can be.

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Potential franchisees without fast food industry experience may be surprised to learn how slim the margins are. Reports have found that the average pre-tax income for franchisees in the food and beverage industry is only roughly $90,000.

Despite being a difficult industry to successfully break into, successful owners can find it can be quite lucrative.

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One of the chains that franchisees should seriously consider is Taco Bell, which is actively recruiting franchisees in order to meet its goal of opening 2,000 new restaurants by 2023.

Taco Bell charges owners a $45,000 franchise fee, and takes 9.75 percent of gross sales to pay for its monthly service and marketing fee. Including purchasing real estate and equipment, franchisees should expect to pay between $500,000 to $2 million to open up their store.

While startup costs are high, so is the potential yearly revenue. According to Statista, the average per unit sales for Taco Bell restaurants in 2017 was $1.5 million.

So for savvy business owners who can keep startup cost low and maintain high yearly revenue, opening a Taco Bell franchise can be profitable option.