Fast Food Franchise Startup Cost Comparison
Tempe, AZ vs Houston, TX
Tempe, AZ
$147,000 - $2,400,000
COL Index: 108.5
VS
Houston, TX
$147,000 - $2,455,000
COL Index: 96.5
Detailed Cost Comparison
| Expense | Tempe, AZ | Houston, TX | Difference |
|---|---|---|---|
|
Franchise Fee
|
$10,000 - $50,000 | $10,000 - $50,000 | Same |
|
Restaurant Build-Out
|
$65,200 - $1,565,200 | $68,500 - $1,643,500 | -5% |
|
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
|
$5,300 - $42,000 | $4,600 - $36,800 | +14% |
|
Grand Opening Campaign
|
$5,000 - $25,000 | $5,000 - $25,000 | Same |
|
Working Capital (3 Months)
|
$21,700 - $162,800 | $19,300 - $144,800 | +12% |
| Total Estimated Cost | $147,000 - $2,400,000 | $147,000 - $2,455,000 | -2% |
Local Market Factors
| Factor | Tempe | Houston |
|---|---|---|
| Cost of Living Index | 108.5 | 96.5 |
| Commercial Rent ($/sqft/yr) | $18 - $42 | $18 - $45 |
| Labor Rate Index | 1.05 | 0.92 |
| Sales Tax | 8.1% | 8.25% |
| Minimum Wage | $14.35/hr | $7.25/hr |
| LLC Filing Fee | $50 | $300 |
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