Fast Food Franchise Startup Cost Comparison
San Jose, CA vs Los Angeles, CA
San Jose, CA
$241,000 - $4,362,000
COL Index: 185.5
VS
Los Angeles, CA
$220,000 - $3,934,000
COL Index: 166.5
Detailed Cost Comparison
| Expense | San Jose, CA | Los Angeles, CA | Difference |
|---|---|---|---|
|
Franchise Fee
|
$10,000 - $50,000 | $10,000 - $50,000 | Same |
|
Restaurant Build-Out
|
$141,300 - $3,391,300 | $125,000 - $3,000,000 | +13% |
|
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
|
$7,800 - $62,000 | $6,800 - $54,000 | +15% |
|
Grand Opening Campaign
|
$5,000 - $25,000 | $5,000 - $25,000 | Same |
|
Working Capital (3 Months)
|
$37,100 - $278,300 | $33,300 - $249,800 | +11% |
| Total Estimated Cost | $241,000 - $4,362,000 | $220,000 - $3,934,000 | +11% |
Local Market Factors
| Factor | San Jose | Los Angeles |
|---|---|---|
| Cost of Living Index | 185.5 | 166.5 |
| Commercial Rent ($/sqft/yr) | $35 - $95 | $30 - $85 |
| Labor Rate Index | 1.55 | 1.35 |
| Sales Tax | 9.375% | 9.5% |
| Minimum Wage | $17.55/hr | $16.78/hr |
| LLC Filing Fee | $70 | $70 |
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