The U.S. franchise market? Honestly, the market size in the U.S. is a whopping $890 billion, with over 800,000 franchises.

It seems like anything you do could succeed, and I sometimes think about starting one myself to hear the title of boss.

Franchises, what are the benefits and what are the issues?

First, let's look at the advantages. The biggest one is that everything is already set up.

From recipes to operational know-how, marketing, and supply chains for ingredients, the headquarters takes care of it all.

However, for large QSR brands, it's not as simple as "I can just get a loan and make it work." The entry barriers are quite high in this area.

For example, looking at McDonald's, the total investment is roughly between $1.3 million and $2.5 million.

What's important here is 'net worth.' Typically, they require at least $500,000 in liquid assets.

And it's not just any money; it has to be debt-free. There are separate franchise fees, and when you add in costs for interior, equipment, and real estate, the amount goes up significantly.

Chick-fil-A is a bit unique. The initial entry cost looks low at around $10,000, but the structure is completely different.

You don't "own" the store; you operate as part of the headquarters. You have to share profits with the headquarters, and expanding the store is not possible. In simple terms, the risk is low, but it's not a structure for making big money.

Subway is relatively affordable. You can start for about $150,000 to $300,000. Many people entered this before, but the problem is that there are too many stores, leading to fierce competition. Nowadays, maintaining sales is not easy in many areas. Just because it's cheap doesn't mean it's good. Many businesses barely break even.

Mid-tier brands like Five Guys or Popeyes usually require a realistic investment of $400,000 to $1 million or more.

Especially in this category, they often require multi-unit conditions, making it difficult for individuals to enter with a single store.

To summarize, here's the breakdown:

Top-tier brands: $1 million to $2.5 million or more
Mid-tier brands: $400,000 to $1 million
Low-cost (among QSR): $150,000 to $300,000

Here's an important point to note. There is a "self-capital ratio" that the headquarters requires. Typically, you need to put in at least 20-30% of your own money.

Realistically, this means that $200,000 plus loans are not feasible for large QSRs but rather for small brands or service-type franchises.

What can realistically be done with $200,000 (+ loans)?

Starting a large fast-food (QSR) brand with $200,000 and some loans is honestly impossible.

Big brands exceed the budget from the start. Instead, you should look towards small stores, service types, or low-cost franchises.

1. Laundry and Cleaning Services (Everyday Services): The initial investment is low, and if you manage labor costs well, you can receive cash consistently every month. However, there are no big wins. It's a structure for stable living.

2. Small Cafes or Desserts: K-desserts are hot in the U.S. right now, so it might be worth targeting that niche market. However, this is 100% about location. If you go to a place with no foot traffic, it doesn't matter how Instagrammable it is; you'll quickly turn to losses.

3. Educational Services and Tutoring: American parents are very focused on education. If you set up in areas with many Asians, it can be quite profitable and stable. However, the owner must be actively involved and manage the operations. If you think you can just invest and sit back, you will 100% fail.

4. Small Fitness and Health Studios: There are places that can start with around $200,000 to $300,000 with a 24-hour unmanned system or small studio format. With the current wellness trend, demand is relatively steady.

Fact Check Summary

Ultimately, starting a franchise in the U.S. with this money means approaching it with the mindset of 'reducing the risk of failure for stable establishment' rather than 'getting rich quickly.'

Lastly, remember one crucial thing. Just because the sign says it's a big corporation doesn't mean the headquarters will run the business for you.

Cleaning every corner of the store and dealing with customers is ultimately the responsibility of the owner. If you start with the misconception that you will be treated like royalty, the game is already over before you even open.