Cheapest Food Franchises Under $25,000: 6 FDDs Checked

If you are searching for a food franchise under $25,000, the useful question is not which brand has a fee under $25,000, because most do. It is which formats show an Item 7 total that low, and what each one assumes you already have.

Among these FDDs, the lowest Item 7 low end is Chester’s Supermarket Restaurant at $15,500 (FDD issued April 6, 2026), and it assumes you already operate the space and own the equipment. For a standalone restaurant, see cheapest chicken franchises, cheapest pizza franchises and food franchises under $100K.

The comparison uses six Franchise Disclosure Documents issued between July 2025 and April 2026: Chester’s, Rita’s, Hissho, Kona Ice, Dippin’ Dots and Nathan’s Famous. Brand-site claims are dated October 14, 2026. FDD figures apply to the issuance dates shown and can change with the next filing.

The fee is not the total, and the cover page shows the gap

Item 5 lists initial fees paid to the franchisor or its affiliates. Item 7 lists the whole estimated investment. The FTC prescribes one sentence for the cover page of every FDD that states both: the Item 7 total, and how much of it “must be paid to the franchisor or affiliate,” which the FTC’s compliance guide says makes clear that Item 5 is a subset of Item 7. The rules themselves are in 16 CFR 436.5. Our guides to Item 5 and Item 7 show how to read them.

That sentence exposes the trick in a low-fee brand. Kona Ice’s cover says its total is $114,730 to $228,601 and includes $108,840 to $188,291 paid to the franchisor or its affiliates. The $15,000 fee is 13.1% of the low total ($15,000 ÷ $114,730) and 6.6% of the high total ($15,000 ÷ $228,601). Most of the rest of what the franchisor collects is the truck and its initial inventory: the FDD’s Item 5 prices a used truck with installed equipment at $87,365 to $125,781 and a new one at $151,491 to $157,491, and lists initial inventory at $6,475.

Six FDDs side by side

Brand and format (FDD issued)	Fee the FDD states	Item 7 total	What the low end assumes
Chester’s Supermarket Restaurant, fried chicken (Apr. 6, 2026)	$2,000 training fee	$15,500 to $306,500	Existing space with no significant additional rent unless percentage rent applies (note 2); existing equipment (note 4); $0 build-out (note 3)
Chester’s Store-in-Store or Non-Trad (Apr. 6, 2026)	$3,500 training fee	$27,500 to $306,500	Existing space for Store-in-Store; leased space for Non-Trad (note 2); $12,000 equipment (note 4); $0 build-out (note 3)
Chester’s Express (Apr. 6, 2026)	$2,000 training fee	$27,500 to $306,500	Existing space (note 2); $12,000 equipment (note 4); $0 build-out (note 3)
Rita’s mobile unit (Jan. 30, 2026)	$5,000	$16,500 to $180,000	Standard Shop prerequisite (note 1); $0 lease deposit (note 3), leasehold improvements (note 4) and additional funds (note 14); $10,000 equipment (note 6)
Hissho Sushi counter in a retail host (Apr. 24, 2026)	$7,500 for the first full-service unit	$26,789 to $144,429, plus up to $150,000 if you buy an existing unit	Third-party host counter; $1,000 equipment low end, with some equipment potentially supplied by the host (note 9); equipment ranges to $17,000 for sushi or $25,000 for an Asian food bar
Nathan’s Famous Branded Menu Program (July 23, 2025)	$7,500 license fee	$50,360 to $178,800	New or existing food-service establishment; $0 construction (note 2), $27,360 equipment (note 3), no additional real-estate leasing costs (note 6)
Kona Ice (Apr. 20, 2026)	$15,000	$114,730 to $228,601	A used truck ($87,365; Item 7 note 1)
Dippin’ Dots store only (Apr. 16, 2026)	$15,000	$112,949 to $344,150	Kiosk rent supplies the lower starting point; first-year rent estimated at $2,400 to $90,000 for a kiosk and $14,400 to $120,000 for an in-line store (Item 7 note 11)

Sources: cover pages and Items 5 and 7 of each FDD. Chester’s totals exclude real estate lease and purchase costs. Kona Ice’s site, checked October 14, 2026, states a $15,000 franchise fee and $102,365 to $226,841 as its estimated investment, which differs from its FDD’s $114,730 to $228,601.

The two formats that get under $25,000

Chester’s Supermarket Restaurant. Chester’s is a fried chicken brand: its franchise page is titled “Fried Chicken Restaurant Franchise Opportunities in the USA | Chester’s Chicken” (checked October 14, 2026). Compare formats in the cheapest chicken franchises guide. Chester’s FDD offers three formats, and its cover page says the Supermarket format totals $15,500 to $306,500. Its Item 7 notes assume the restaurant is located within your existing space, so you should have no significant rent obligation unless you pay percentage rent, and that you already own your kitchen and serving-line equipment, decor, refrigeration, point-of-sale materials, safe, menu boards, smallwares and signage. In other words, the low end is for someone who already runs a food or convenience business and is adding a chicken counter. The high end includes up to $200,000 of build-out, and the notes say build-out cost depends on whether an existing food or deli-type facility is being converted, whether a drive-thru window is added, and the square footage, seating, kitchen size, hood systems and HVAC.

The arithmetic shows why reading the rows matters. At the low end the Supermarket table lists a $2,000 training fee, $0 for insurance, build-out, equipment and grand opening, $2,000 of initial inventory, and $10,000 of additional funds. Those add to $14,000, while the FDD prints $15,500. At the high end the rows add to $305,000 against a printed $306,500. The store-in-store table, by contrast, adds exactly: $3,500 + $12,000 + $2,000 + $10,000 = $27,500 at the low end, and $306,500 at the high end. The Express table also has a $1,500 gap: its rows total $26,000 to $305,000, while it prints $27,500 to $306,500. The comparison preserves the FDD’s printed totals and flags these arithmetic differences.

Rita’s mobile unit. Rita’s cover page says a mobile unit totals $16,500 to $180,000, with $10,000 to $13,000 of that paid to the franchisor or its affiliate. The mobile-unit table lists a $5,000 fee, equipment of $10,000 to $166,000, insurance of $1,500 to $4,500, and $0 for lease, leasehold, signage and additional funds. But Item 1 says the franchisor offers a mobile unit only to a party that operates a standard shop and is in full compliance, and Item 7 says you can operate a satellite or mobile unit only if you operate a Standard Shop. Rita’s cover page lists a standard shop at $315,233 to $712,542 without a drive-thru and $456,858 to $915,536 with one. The $16,500 mobile-unit estimate excludes the investment in the required Standard Shop. Note also that the mobile-unit rows at the low end add to $16,600 ($5,000 fee, $10,000 equipment, $100 permits and licenses, $1,500 insurance), not the printed $16,500.

If you’re adding a mobile unit, our food truck equipment checklist lists what the vehicle build involves.

Low fee, high total

The other brands on low-cost lists get there through the fee.

• Kona Ice. Item 5 sets a $15,000 fee, non-refundable, plus the truck. Item 7’s low total assumes a used truck; its own note says a new truck raises the low end to $151,491 for that row. The brand’s site and its FDD disagree on the total, which is a reason to reconcile against the FDD.
• Dippin’ Dots. Its Item 5 lists three models: $35,000 for a Territory franchise, $15,000 for Store Only, and $25,000 for Distribution. Totals on the cover are $138,949 to $398,650 (Territory), $112,949 to $344,150 (Store Only) and $79,349 to $193,750 (Distribution), with $103,699 to $135,150, $83,699 to $115,150 and $47,999 to $75,250 respectively paid to the company or its affiliates. The brand’s franchising FAQ, checked October 14, 2026, states: “The franchise fee for Dippin’ Dots is $35,000.” It separately gives a $119,704 to $366,950 estimated initial investment for a Dippin’ Dots & Doc Popcorn co-brand business. The FDD distinguishes the $35,000 Territory fee from the $15,000 Store Only fee; the table above retains the Store Only format.
• Nathan’s Famous. Its Branded Menu Program FDD, issued July 23, 2025, is a separate document from its restaurant franchise. It states a $7,500 license fee, a total of $50,360 to $178,800, and no royalty or marketing contribution based on sales. The same Item 6 note says you must buy all products and equipment from the company or an approved distributor, and that the company will profit on those sales. Item 5 estimates the initial inventory at $1,000 to $5,000, while its Item 7 table lists $2,000 to $5,000 for the Branded Menu Program initial inventory.
• Chick-fil-A. Its franchise page, checked October 14, 2026, lists a $10,000 upfront fee in non-gifted, non-borrowed funds and full-time, hands-on, day-to-day ownership and operation, and it states no total investment. Read the FDD for the total.

What the low total hides: ongoing costs

A low total is not a low cost of operating. These selected recurring charges from Item 6 show different structures; they are not a complete list of contingent fees.

Brand	Item 6 structure, as stated in the FDD
Hissho	Retail host typically 27% of gross sales (range 0% to 40%); franchisor typically 0% to 20% of gross sales, with amounts varying widely; brand fund up to 2% of net sales; annual point-of-sale marketing up to $4,000 per unit
Rita’s	Royalty of 6.5% and advertising contribution of 3.0%, computed on estimated sales for Rita’s-Mix items and on gross sales for other items; minimum local advertising currently 2.0% of gross sales, with a 3.0% ceiling
Kona Ice	Fixed annual truck royalties: $3,000 in years one and two, $4,000 in years three to six, $5,000 in years seven to ten; current annual brand fund $1,000 per KEV/KEV 2.0 truck plus $200 per Additional Equipment; Additional Equipment royalties currently $1,000 to $2,500 annually; optional smoothie fee $1,000 annually
Dippin’ Dots	$2.16 per bulk bag, $0.09 per pre-pack unit and up to 6% on ancillary items; may be replaced by royalty up to 6% of gross sales. Advertising: $0.24 per bulk bag, $0.01 per pre-pack unit and up to 2% on ancillary items; may be replaced by contribution up to 2% of gross sales
Nathan’s Famous BMP	No royalty or marketing contribution based on sales; you buy products and equipment from the company or an approved distributor, and it profits on those sales
Chester’s	No percentage-of-sales royalty line in Item 6; quarterly marketing support $200 (up to $325); special offerings/promotions up to $200 each; Store-in-Store/Non-Trad POS technology $250 to $325 monthly (up to $350), due if you buy the recommended hardware, which Chester’s may require; required purchases from designated distributors

Hissho’s typical 0% to 20% franchisor commission is not a cap: Item 6 says amounts may vary widely. The host commission and franchisor commission are separate costs. Item 1 says Hissho negotiates the host terms and that your right to operate ends if the host relationship ends.

How to check a “$25,000 franchise” claim

1. Find the cover page sentence. It gives the Item 7 total and how much goes to the franchisor or an affiliate. Ignore any ad that quotes only the fee.
2. Find the format. A brand can have a standalone shop, a satellite, a counter and a mobile unit in one FDD, with very different totals. Match the total to the format you would actually open.
3. Read what the low end assumes. Existing space, existing equipment, a host that supplies the location, or an add-on to a shop you already run are all conditions of the low number.
4. Add the rows in the format’s table and compare the sum with the printed total, including any gap like Chester’s Supermarket above.
5. Read Item 6 for the ongoing structure, including who else gets paid, as in the Hissho host commission.
6. Get the FDD from the franchisor. The federal rule requires it at least 14 calendar days before you sign or pay anything. Check the issuance date against the dates in the table; a newer issuance may exist.

Check any cheap-franchise claim against Item 7

Our free startup-cost worksheet follows Item 7's rows so you can see what a low-end figure leaves out, line by line. Plus the due-diligence kit.

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Use the food franchise vertical cost comparison to compare across categories.

If your budget really is under $25,000, the franchise under $10,000 guide and the pitfalls of chasing the cheapest food franchise are the next reads. For a delivery-only or menu-license format, see the ghost kitchen franchise cost guide. If you have more to work with, the coffee franchise under $50,000 guide and the food franchises under $100,000 guide map the higher rungs, and the franchises with no royalty page shows how fee structures differ.

Questions to ask before you commit

• Does the low end of the Item 7 range for the exact format I want assume a host location, existing equipment or an existing shop, and can I meet that assumption?
• Which Item 5 payments go to the franchisor or an affiliate, and does the cover-page figure match the sum?
• How does the franchisor make money on products I must buy, and what are the current designated suppliers?
• What are the ongoing fees in Item 6, and who else, such as a host, takes a share of sales?
• Will a franchise attorney and an accountant review the full FDD before I put money down?