Fast Food Franchise Startup Cost Comparison
Chattanooga, TN vs Los Angeles, CA
Chattanooga, TN
$115,000 - $1,688,000
COL Index: 89.8
VS
Los Angeles, CA
$220,000 - $3,934,000
COL Index: 166.5
Detailed Cost Comparison
| Expense | Chattanooga, TN | Los Angeles, CA | Difference |
|---|---|---|---|
|
Franchise Fee
|
$10,000 - $50,000 | $10,000 - $50,000 | Same |
|
Restaurant Build-Out
|
$37,000 - $887,000 | $125,000 - $3,000,000 | -70% |
|
Kitchen Equipment & Technology
|
$30,000 - $500,000 | $30,000 - $500,000 | Same |
|
Insurance Package
|
$5,000 - $25,000 | $5,000 - $25,000 | Same |
|
Opening Inventory & Supplies
|
$5,000 - $30,000 | $5,000 - $30,000 | Same |
|
Hiring & Training
|
$4,500 - $36,000 | $6,800 - $54,000 | -33% |
|
Grand Opening Campaign
|
$5,000 - $25,000 | $5,000 - $25,000 | Same |
|
Working Capital (3 Months)
|
$18,000 - $134,700 | $33,300 - $249,800 | -46% |
| Total Estimated Cost | $115,000 - $1,688,000 | $220,000 - $3,934,000 | -57% |
Local Market Factors
| Factor | Chattanooga | Los Angeles |
|---|---|---|
| Cost of Living Index | 89.8 | 166.5 |
| Commercial Rent ($/sqft/yr) | $10 - $24 | $30 - $85 |
| Labor Rate Index | 0.9 | 1.35 |
| Sales Tax | 9.25% | 9.5% |
| Minimum Wage | $7.25/hr | $16.78/hr |
| LLC Filing Fee | $300 | $70 |
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