Worst Fast-Food Chains Listed by Closures (2023)
Written by: Laura Vazquez
Last Updated by
Ailen Faiad: January 24, 2023
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Download NowDid you know 4,000+ Subway franchises failed in less than three years? Or that Pizza Hut had 1,000+ franchise failure in the same time period? Before you buy a franchise, it is important you receive information not just from the person or company selling you the franchise business. Our team at Vetted Biz has reviewed 500+ Fast Food franchises in order to create a list of the 50 Worst Fast Food Chains based on net unit loss over the prior three years.
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Contents
For our analysis, we have taken data for the prior three years starting with 2020 (or 2019 depending on disclosures provided by the franchise brand).
How Do We Calculate Net Unit Loss?
Before we delve into the list, it is essential to understand that Net Unit Loss is when the total number of franchise outlets that closed exceeds the total number of units opened for a given period of time (in this case, three years).
Franchise Failure
Franchises can be deemed as failed in multiple manners: franchise terminations, franchise non-renewals, and franchises that ceased operations for other reasons.
All these metrics are accessible in Item 20 of the Franchise Disclosure Document (FDD). The FDD is a uniform document regulated by the FTC (Federal Trade Commission). All franchisors selling franchises must update their FDDs at least once a year.
It is important to analyze these three categories because they could be indicators of franchise bankruptcy and overall system failure.
Below are the franchises with the highest Net Unit Loss.
The 50 Worst Fast Food Chains
1. Subway
Number of U.S. Locations: 21,147
Net Unit Loss (3 year): 4,726
Description: Subway offers foot-long and other sandwiches, salads, and other food items from a retail store. The minimum investment amount required to open a Subway franchise is $182,550 and can go up to $506,900. The net unit growth rate for Subway over the past 3 years is -15%
2. Pizza Hut Traditional
Number of U.S. Locations: 5,317
Net Unit Loss (3 year): 1,064
Description: Pizza Hut Traditional offers primarily pizza, pasta, and other Italian-style food items and WingStreet chicken products and side dishes. The minimum investment amount required to open a Pizza Hut Traditional franchise is $367,000 and can go up to $2,063,500. The net unit growth rate for Pizza Hut Traditional over the past 3 years is -14%.
3. Dunkin'
Number of U.S. Locations: 8,010
Net Unit Loss (3 year): 988
Description: Dunkin’ offers Dunkin’ coffee, espresso, donuts, bagels, muffins, compatible bakery products, and sandwiches as well as other food items and beverages compatible with their concept. The minimum investment amount required to open a Dunkin’ franchise is $437,500 and can go up to $1,787,700. The net unit growth rate for Dunkin’ over the past 3 years is -1%.
4. Bimbo Bakeries
Number of U.S. Locations: 6,026
Net Unit Loss (3 year): 761
Description: Bimbo Bakeries produces bread, pastries, cakes, and other baked goods. The minimum investment amount required to open a Bimbo Bakeries franchise is $14,350 and can go up to $605,900. The net unit growth rate for Bimbo Bakeries over the past 3 years is -7%.
5. Burger King
Number of U.S. Locations: 7,105
Net Unit Loss (3 year): 635
Description: Burger King offers burgers, chicken sandwiches, salads, wraps, and breakfast items. The minimum investment amount required to open a Burger King franchise is $230,000 and can go up to $4,194,700. The net unit growth rate for Burger King over the past 3 years is -3%.
6. McDonald's
Number of U.S. Locations: 13,436
Net Unit Loss (3 year): 606
Description: McDonald’s offers burgers, chicken, salads, fries, desserts, and breakfast items. The minimum investment amount required to open a McDonald’s franchise is $481,000 and can go up to $2,450,000. The net unit growth rate for McDonald’s over the past 3 years is -3%.
7. Ace Sushi
Number of U.S. Locations: 334
Net Unit Loss (3 year): 583
Description: Ace Sushi offers a wide variety of sushi rolls and sashimi. The minimum investment amount required to open an Ace Sushi franchise is $18,275 and can go up to $117,125. The net unit growth rate for Ace Sushi over the past 3 years is -18%.
8. Pizza Hut Non-Traditional
Number of U.S. Locations: 1,298
Net Unit Loss (3 year): 383
Description: Pizza Hut Non-Traditional offers the same great pizza and service that customers have come to expect from the brand, but with a few convenient tweaks to make life easier for those on the go. The minimum investment amount required to open a Pizza Hut Non-Traditional franchise is $41,100 and can go up to $485,000. The net unit growth rate for Pizza Hut Non-Traditional over the past 3 years is -12%.
9. Jimmy John's
Number of U.S. Locations: 2,657
Net Unit Loss (3 year): 308
Description: Jimmy John’s is best known for its fresh, made-to-order sandwiches. The minimum investment amount required to open a Jimmy John’s franchise is $355,900 and can go up to $671,400. The net unit growth rate for Jimmy John’s over the past 3 years is -5%.
10. Little Caesars
Number of U.S. Locations: 4,181
Net Unit Loss (3 year): 274
Description: Little Caesars offers classic and speciality pizzas, as well as chicken wings, garlic bread, and Caesar salads. The minimum investment amount required to open a Little Caesars franchise is $378,700 and can go up to $1,695,500. The net unit growth rate for Little Caesar’s over the past 3 years is -3%.
11. KFC Traditional
Number of U.S. Locations: 3,919
Net Unit Loss (3 year): 256
Description: KFC Traditional offers their signature fried chicken, as well as their buckets of chicken, sandwiches, wraps, sides, and desserts. The minimum investment amount required to open a KFC Traditional franchise is $1,006,600 and can go up to $3,163,550. The net unit growth rate for KFC Traditional over the past 3 years is -9%.
12. Auntie Anne's
Number of U.S. Locations: 1,138
Net Unit Loss (3 year): 235
Description: Auntie Anne’s offers two types of pretzels, including soft pretzels, which are made with a traditional yeast dough. The pretzels are boiled in a baking soda solution, then baked in a preheated oven. This process gives the pretzels a chewy texture and a golden-brown color. The other type is baked pretzels, which are made with a baking soda-based dough. The minimum investment amount required to open an Auntie Anne’s franchise is $146,050 and can go up to $523,500. The net unit growth rate for Auntie Anne’s over the past 3 years is -8%.
13. Edible Arrangements
Number of U.S. Locations: 895
Net Unit Loss (3 year): 212
Description: Edible Arrangements offers sculpted fruit floral arrangements, gift baskets made with fresh fruit, chocolate-covered fruit, fruit smoothies, fruit salads, fruit and yogurt products, and other chocolate and fruit-related products. The minimum investment amount required to open an Edible Arrangements franchise is $183,600 and can go up to $409,700. The net unit growth rate for Edible Arrangements over the past 3 years is -19%.
14. Long John Silver's
Number of U.S. Locations: 638
Net Unit Loss (3 year): 201
Description: Long John Silver’s offers a variety of home-style dishes, including breakfast items, sandwiches, burgers, salads, and desserts. The minimum investment amount required to open a Long John Silvers franchise is $658,700 and can go up to $1,818,700. The net unit growth rate for Long John Silvers over the past 3 years is -40%.
15. Dickey’s Barbecue Pit
Number of U.S. Locations: 484
Net Unit Loss (3 year): 183
Description: Dickey’s Barbecue Pit offers beef brisket, pork ribs, sausage, and chicken, as well as a variety of sides such as coleslaw, beans, and potato salad. The minimum investment amount required to open a Dickey’s Barbecue Pit franchise is $47,966 and can go up to $415,457. The net unit growth rate for Dickey’s Barbecue Pit over the past 3 years is -10%.
16. Hardee's
Number of U.S. Locations: 1,759
Net Unit Loss (3 year): 182
Description: Hardee’s offers burgers and a variety of other menu items, including fries, shakes, and chicken sandwiches. The minimum investment amount required to open a Hardee’s franchise is $1,252,500 and can go up to $2,131,000. The net unit growth rate for Hardee’s over the past 3 years is -11%.
17. Chili's
Number of U.S. Locations: 1,232
Net Unit Loss (3 year): 171
Description: Chili’s offers Tex-Mex cuisine, including enchiladas, fajitas, and quesadillas. The minimum investment amount required to open a Chili’s franchise is $1,742,195 and can go up to $5,653,695. The net unit growth rate for Chili’s over the past 3 years is -5%.
18. Which Wich
Number of U.S. Locations: 264
Net Unit Loss (3 year): 168
Description: Which Wich offers a wide variety of sandwich options, including vegetarian, vegan, and gluten-free choices. The minimum investment amount required to open a Which Wich franchise is $253,500 and can go up to $742,250. The net unit growth rate for Which Wich over the past 3 years is -31%.
19. Papa Murphy's
Number of U.S. Locations: 1,239
Net Unit Loss (3 year): 166
Description: Papa Murphy’s offers made-to-order pizzas that you can take home and bake in your oven. The minimum investment amount required to open a Papa Murphy’s franchise is $308,469 and can go up to $557,879. The net unit growth rate for Papa Murphy’s over the past 3 years is -6%.
20. Taco Bell Express
Number of U.S. Locations: 259
Net Unit Loss (3 year): 153
Description: Taco Bell Express offers a variety of menu items, including tacos, burritos, quesadillas, nachos, and more. The minimum investment amount required to open a Taco Bell Express franchise is $227,500 and can go up to $590,100. The net unit growth rate for Taco Bell Express over the past 3 years is -30%.
21. Golden Corral
Number of U.S. Locations: 359
Net Unit Loss (3 year): 147
Description: Golden Corral offers steak, chicken, seafood, vegetables, salads, soups, desserts, and beverages. The minimum investment amount required to open a Golden Corral franchise is $3,453,993 and can go up to $7,774,230. The net unit growth rate for Golden Corral over the past 3 years is -21%
22. Orange Leaf Frozen Yogurt
Number of U.S. Locations: 160
Net Unit Loss (3 year): 137
Description: Orange Leaf Frozen Yogurt offers a variety of flavors and toppings and allows customers to create their own custom frozen yogurt cups. The minimum investment amount required to open an Orange Leaf Frozen Yogurt franchise is $135,092 and can go up to $417,326. The net unit growth rate for Orange Leaf Frozen Yogurt over the past 3 years is -41%.
23. Sonic Drive-In
Number of U.S. Locations: 3,552
Net Unit Loss (3 year): 130
Description: Sonic Drive-In offers a variety of specialty drinks (such as cherry limeades and slushes), ice cream desserts, cheeseburgers, chicken entrees, hot dogs, onion rings, tater tots, and breakfast items. The minimum investment amount required to open a Sonic Drive-In franchise is $348,500 and can go up to $3,543,000. The net unit growth rate for Sonic Drive-In over the past 3 years is -6%.
24. Applebee's
Number of U.S. Locations: 1,584
Net Unit Loss (3 year): 121
Description: Applebee’s offers appetizers, soup, salads, entrees (including pasta dishes), sandwiches, and desserts. The minimum investment amount required to open an Applebee’s franchise is $2,009,201 and can go up to $8,266,730. The net unit growth rate for Applebee’s over the past 3 years is -7%.
25. Church's Chicken
Number of U.S. Locations: 1,026
Net Unit Loss (3 year): 121
Description: Church’s Chicken specializes in fried chicken and offers a variety of side dishes such as jalapeño peppers, French fries, honey-buttered biscuits, and coleslaw. The minimum investment amount required to open a Church’s Chicken franchise is $676,500 and can go up to $1,603,300. The net unit growth rate for Church’s Chicken over the past 3 years is -11%.
26. Chester's
Number of U.S. Locations: 1,071
Net Unit Loss (3 year): 120
Description: Chester’s offers their signature menu items, including its line of chicken products. The minimum investment amount required to open a Chester’s franchise is $135,092 and can go up to $288,118. The net unit growth rate for Chester’s over the past 3 years is -9%.
27. Moe's Southwest Grill
Number of U.S. Locations: 659
Net Unit Loss (3 year): 116
Description: Moe’s Southwest Grill offers Tex-Mex favorites such as burritos, quesadillas, nachos, tacos, salads, and more. The minimum investment amount required to open a Moe’s Southwest Grill franchise is $566,300 and can go up to $1,585,610. The net unit growth rate for Moe’s Southwest Grill over the past 3 years is -8%.
28. Quiznos
Number of U.S. Locations: 202
Net Unit Loss (3 year): 110
Description: Quiznos offers a variety of sandwiches, as well as salads, wraps, and soups. The minimum investment amount required to open a Quiznos franchise is $398,100 and can go up to $792,000. The net unit growth rate for Quiznos over the past 3 years is -34%.
29. TCBY
Number of U.S. Locations: 172
Net Unit Loss (3 year): 105
Description: TCBY offers frozen yogurt and a variety of other products, including ice cream, shakes, and smoothies. The minimum investment amount required to open a TCBY franchise is $134,000 and can go up to $635,812. The net unit growth rate for TCBY over the past 3 years is -35%.
30. DQ Treat
Number of U.S. Locations: 828
Net Unit Loss (3 year): 96
Description: DQ Treat offers ice cream, sundaes, shakes, Blizzards, and more. The minimum investment amount required to open a DQ Treat franchise is $2,596,000 and can go up to $3,835,000. The net unit growth rate for DQ Treat over the past 3 years is -9%.
31. Earthgrains
Number of U.S. Locations: 428
Net Unit Loss (3 year): 95
Description: Earthgrains offers bread, rolls, bagels, buns, and pastries. The minimum investment amount required to open an Earthgrains franchise is $15,425 and can go up to $607,850. The net unit growth rate for Earthgrains over the past 3 years is -13%.
32. Pita Pit
Number of U.S. Locations: 118
Net Unit Loss (3 year): 92
Description: Pita Pit offers a variety of pita sandwiches, salads, and wraps. The minimum investment amount required to open a Pita Pit franchise is $353,154 and can go up to $574,441. The net unit growth rate for Pita Pit over the past 3 years is -38%.
33. Blimpie
Number of U.S. Locations: 142
Net Unit Loss (3 year): 90
Description: Blimpie offers submarine sandwiches, salads, and wraps. The minimum investment amount required to open a Blimpie franchise is $74,780 and can go up to $524,325. The net unit growth rate for Blimpie over the past 3 years is -39%.
34. TGI Fridays
Number of U.S. Locations: 308
Net Unit Loss (3 year): 81
Description: TGI Fridays offers burgers, ribs, steaks, and salads. The minimum investment amount required to open a TGI Fridays franchise is $363,100 and can go up to $1,235,600. The net unit growth rate for TGI Fridays over the past 3 years is -10%.
35. Checkers
Number of U.S. Locations: 542
Net Unit Loss (3 year): 79
Description: Checkers offers hamburgers, cheeseburgers, hot dogs, fish sandwiches, fries, and sides. The minimum investment amount required to open a Checkers franchise is $169,052 and can go up to $2,368,316. The net unit growth rate for Checkers over the past 3 years is -12%.
36. Steak n' Shake
Number of U.S. Locations: 338
Net Unit Loss (3 year): 77
Description: Steak ’n Shake offers their signature steakburgers, salads, wraps, and other sandwiches. The minimum investment amount required to open a Steak ’n Shake franchise is $155,970 and can go up to $1,720,895. The net unit growth rate for Steak ’n Shake over the past 3 years is -23%.
37. Jack in the Box
Number of U.S. Locations: 2,218
Net Unit Loss (3 year): 76
Description: Jack in the Box offers a variety of breakfast items as well as burgers, tacos, and other sandwiches. The minimum investment amount required to open a Jack in the Box franchise is $1,697,000 and can go up to $2,694,600. The net unit growth rate for Jack in the Box over the past 3 years is -2%.
38. Huddle House
Number of U.S. Locations: 304
Net Unit Loss (3 year): 64
Description: Huddle House offers all meals, including breakfast foods, during all hours of operation. Whether someone is looking for breakfast staples like bacon and eggs or sausage and pancakes, or something a little heartier like a burger or steak dinner, Huddle House has something for everyone. The minimum investment amount required to open a Huddle House franchise is $556,310 and can go up to $1,421,175. The net unit growth rate for Huddle House over the past 3 years is -16%.
39. Mrs. Fields
Number of U.S. Locations: 128
Net Unit Loss (3 year): 61
Description: Mrs. Fields is a bakery chain that offers a wide variety of freshly baked cookies, brownies, and other desserts. The minimum investment amount required to open a Mrs. Fields franchise is $151,800 and can go up to $415,500. The net unit growth rate for Mrs. Fields over the past 3 years is -26%.
40. U-Swirl
Number of U.S. Locations: 74
Net Unit Loss (3 year): 54
Description: U-Swirl offers self-service frozen yogurt. The minimum investment amount required to open a U-Swirl franchise is $339,000 and can go up to $464,000. The net unit growth rate for U-Swirl over the past 3 years is -38%.
41. Pretzelmaker
Number of U.S. Locations: 161
Net Unit Loss (3 year): 52
Description: Pretzelmaker offers a variety of both sweet and savory pretzel snacks, as well as dipping sauces. Their popular menu items include traditional soft pretzels, pretzel bites, cheese sticks, and pretzel dogs. The minimum investment amount required to open a Pretzelmaker franchise is $96,000 and can go up to $322,000. The net unit growth rate for Pretzelmaker over the past 3 years is -22%.
42. Togo's
Number of U.S. Locations: 169
Net Unit Loss (3 year): 46
Description: Togo’s offers sandwiches, salads, soups, and pasta dishes as well as a breakfast menu with items such as omelets and pancakes. The minimum investment amount required to open a Togo’s franchise is $231,500 and can go up to $476,500. The net unit growth rate for Togo’s over the past 3 years is -19%.
43. Red Mango
Number of U.S. Locations: 65
Net Unit Loss (3 year): 41
Description: Red Mango offers primarily authentic frozen yogurt and treats, yogurt and non-yogurt-based smoothie beverages, fruit-based smoothie beverages, fresh-squeezed fruit and vegetable juices, health foods, and café items (e.g., wraps, salads, soups, flatbreads). The minimum investment amount required to open a Red Mango franchise is $119,200 and can go up to $617,400. The net unit growth rate for Red Mango over the past 3 years is -27%.
44. Perkins Restaurant & Bakery
Number of U.S. Locations: 476
Net Unit Loss (3 year): 40
Description: Perkins Restaurant & Bakery is famous for breakfast, but they also serve lunch and dinner. Perkins Restaurant & Bakery is a family-style restaurant offering moderately priced meals. The minimum investment amount required to open a Perkins Restaurant & Bakery franchise is $1,187,065 and can go up to $2,499,390. The net unit growth rate for Perkins Restaurant & Bakery over the past 3 years is -15%.
45. Gigi's Cupcakes
Number of U.S. Locations: 70
Net Unit Loss (3 year): 38
Description: Gigi’s Cupcakes offers cupcakes and a selection of other baked goods such as cookies, brownies, and cake pops. The minimum investment amount required to open a Gigi’s Cupcakes franchise is $227,200 and can go up to $443,500. The net unit growth rate for Gigi’s Cupcakes Shops over the past 3 years is -32%.
46. Nathan's
Number of U.S. Locations: 169
Net Unit Loss (3 year): 35
Description: Nathan’s offers hot dogs made with their proprietary spice formula as well as crinkle-cut French fries, hamburgers, assorted sandwiches, platters, and other fast-service menu items. The minimum investment amount required to open a Nathan’s franchise is $37,500 and can go up to $97,300. The net unit growth rate for Nathan’s over the past 3 years is -21%.
47. Smashburger
Number of U.S. Locations: 219
Net Unit Loss (3 year): 35
Description: Smashburger offers fresh burgers, salads, sandwiches, hand-spun Haagen-Dazs shakes, and more. The minimum investment amount required to open a Smashburger franchise is $941,860 and can go up to $2,017,426. The net unit growth rate for Smashburger over the past 3 years is -28%.
48. Zoup! Eatery
Number of U.S. Locations: 70
Net Unit Loss (3 year): 32
Description: Zoup! Eatery offers soups, sandwiches, salads, and mac and cheese. The minimum investment amount required to open a Zoup! Eatery franchise is $357,900 and can go up to $675,500. The net unit growth rate for Zoup! Eatery over the past 3 years is -30%.
49. Famous Dave's
Number of U.S. Locations: 136
Net Unit Loss (3 year): 29
Description: Famous Dave’s offers pork ribs, chicken, beef brisket, and several flavors of barbecue sauce. The minimum investment amount required to open a Famous Dave’s franchise is $70,500 and can go up to $4,495,750. The net unit growth rate for Famous Dave’s over the past 3 years is -21%.
50. Beef ‘O’ Brady’s
Number of U.S. Locations: 140
Net Unit Loss (3 year): 23
Description: Beef ‘O’ Brady’s offers wings, burgers, sandwiches, salads, and entrees such as fish and chips and shepherd’s pie. The minimum investment amount required to open a Beef ‘O’ Brady’s franchise is $809,325 and can go up to $1,290,850. The net unit growth rate for Beef ‘O’ Brady’s over the past 3 years is -19%.
