Fast Food Franchise Startup Cost Comparison
Rochester, MN vs Los Angeles, CA
Rochester, MN
$128,000 - $1,970,000
COL Index: 101.5
VS
Los Angeles, CA
$220,000 - $3,934,000
COL Index: 166.5
Detailed Cost Comparison
| Expense | Rochester, MN | Los Angeles, CA | Difference |
|---|---|---|---|
|
Franchise Fee
|
$10,000 - $50,000 | $10,000 - $50,000 | Same |
|
Restaurant Build-Out
|
$47,800 - $1,147,800 | $125,000 - $3,000,000 | -62% |
|
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
|
$5,000 - $40,000 | $6,800 - $54,000 | -26% |
|
Grand Opening Campaign
|
$5,000 - $25,000 | $5,000 - $25,000 | Same |
|
Working Capital (3 Months)
|
$20,300 - $152,300 | $33,300 - $249,800 | -39% |
| Total Estimated Cost | $128,000 - $1,970,000 | $220,000 - $3,934,000 | -49% |
Local Market Factors
| Factor | Rochester | Los Angeles |
|---|---|---|
| Cost of Living Index | 101.5 | 166.5 |
| Commercial Rent ($/sqft/yr) | $14 - $30 | $30 - $85 |
| Labor Rate Index | 1 | 1.35 |
| Sales Tax | 7.375% | 9.5% |
| Minimum Wage | $10.85/hr | $16.78/hr |
| LLC Filing Fee | $155 | $70 |
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