How Much Does It Cost to Start a Raising Cane’s Franchise?

The fast food industry witnesses new entrants every now and then, and one such entrant is the Raising Cane’s. It has managed to gain a strong foothold in the food industry due to its food quality, unique menu, and excellent customer service. And because of all these reasons, the brand has earned a huge fan base who are addicted to its signature dish, chicken fingers. 

Since Raising Cane’s has become a huge hit, many aspiring entrepreneurs have come forward stating their willingness to open its franchise which they consider a good investment opportunity. This article will explore everything about Raising Cane’s and also the cost required to start a Raising Cane’s franchise.

How Did Raising Cane’s Come Into Existence?

Raising Cane

Todd Graves was the person who was responsible for the establishment of Raising Cane’s in 1996 in Baton Rouge, Louisiana. Graves was working on an offshore oil rig, where he tasted the chicken fingers for the first time. He was so impressed with it that he decided to start a business in his hometown that would have chicken fingers as its signature dish. 

The name Raising Cane’s was chosen by Graves as a tribute to his dog. They both had gone on several hunting trips together and became his trusted companion. If you notice the Raising Cane’s logo carefully, you can find the outline of a dog, representing Cane, and the restaurant’s emphasis on quality and simplicity. You can find that Raising Cane’s offers very limited items including crinkle-cut fries, coleslaw, Texas toast, Cane’s sauce, and the hero of the restaurant – chicken fingers. 

Though the menu is limited, the restaurant never fails to impress you with its taste and quality. This is the major reason for Raising Cane’s becoming so popular within a short span of time.

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Locations Where Raising Cane’s Made Its Mark

Locations Where Raising Cane'

Raising Cane’s was first opened on Highland Road. Soon after, the restaurant became a huge hit in the community due to the high quality of its food and also because of the ambiance of its location. 

The second restaurant was started in 1997, very close to the LSU campus. In 2000, several other branches of Raising Cane’s were started throughout South Louisiana, all thanks to its undeniable popularity. In 2004, Raising Cane’s began its first journey outside of Louisiana in Columbus, Ohio. 

By 2007, this restaurant had become a strong competitor to others in the quick-service restaurant sector. The restaurant continued its expansion throughout the Midwest and South. By 2019, one could spot Raising Cane’s in several states and countries.

The restaurant’s hard work paid off as it won several accolades as time passed. One noteworthy award was that of the fastest-growing restaurant chain in the US, which was given by Nation’s Restaurant News in 2017. Even after all these years, Graves still owns Raising Cane’s restaurant and is the CEO there. 

How Much Does It Cost to Start a Raising Cane’s Franchise?

Cost to Start a Raising Cane's Franchise?

When you want to start a franchise, the first and foremost thing that you have to think about is the financial investment. You need to have sufficient funds to own a location and run the franchise. Though nobody can predict the exact financial requirements and expenses needed to start a franchise, you can find a preliminary estimate below which is based on other similar businesses. 

The franchise disclosure document (FDD) for Raising Cane’s from 2021 reveals that the initial franchise fee for one Cane’s restaurant is $45,000. When it comes down to the total investment required to open a Raising Cane’s franchise, the amount can range from $768,100 to $1,937,500. This estimate is based on considering factors including the size, location, purchase of equipment, supplies, inventories, and others. 

A more detailed approximate breakdown of the franchising costs is given below:

Franchise fee for one Raising Cane’s restaurant: $45,000.

Real estate and construction expenses: $571,300 to $1,285,800

Equipment and supplies costs: $206,700 to $336,200

Inventory costs: $11,500 to $22,000

Training and opening costs: $18,500 to $44,000

Additional costs: $50,000 to $104,300

However, you have to remember that you cannot depend only on the amount above. The actual costs to start a Raising Cane’s franchise may vary depending on various factors. You also have to take into account the ongoing fees including royalty fees, marketing fees, and others. 

The royalty fee is 5%, while the marketing fee is 4%. You can compare Raising Cane’s franchise fees with other fast food restaurants. Simply put, the royalty fee and marketing fee of Raising Cane’s is similar to that of other restaurants including McDonald’s, Subway, and Popeyes.

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How to Start a Raising Cane’s Franchise?

Ensure You Meet the Basic Requirements 

You have to meet some basic requirements to start a Raising Cane’s franchise. The first and foremost requirement is that you have to be financially strong. Your net worth should be a minimum of $1.5 million and you should possess liquid assets of a minimum of $750,000. 

The next requirement is you must be from a business management background, and experience in the restaurant or hospitality industry is most welcome. You should also have a proven track record of successfully managing and operating a business.

The third requirement is you should be totally committed to the brand. You should under no circumstances compromise on the brand’s standards and ethics and must focus on delivering quality food, and excellent customer service.

The fourth requirement is you must adhere to Raising Cane’s franchise system. Since you are its franchisee, you must follow its rules and regulations, procedures, training programs, marketing techniques, and supply chain management. 

The final requirement is you must choose an appropriate location for the restaurant and get a lease or purchase agreement for that place. Raising Cane’s will also support you by helping you choose the perfect location and while negotiating the lease or purchase agreements.

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Ensure You are Aware of the Financial Commitments 

If you are willing to start a Raising Cane’s franchise, you have to be aware of the various financial commitments involved in it. You have to consider the expenses for various factors including real estate, equipment, inventory, licenses and permits, insurance, uniforms, and several other things. So, when you apply for a franchise, it is mandatory that you research in detail and have a rough estimate of the finances you will require. This process will help you understand whether you will be able to take up the franchise.

Ensure You Consider Your Past Experiences 

Just rewind your past experiences in business before you take this big step of starting a Raising Cane’s franchise. Your past experience in management, marketing skills, and your work ethic will help you determine whether you are the right candidate to start a franchise.

Ensure You Check if There is a Demand for Your Franchise 

Before you start a Raising Cane’s franchise in a location, always check if there is a demand for the same in that place. If you find the location you have chosen is not suitable for this type of franchise, you can choose a better area, where the reach is more.

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What Happens After You Meet All the Requirements?

Once you meet all the requirements, you can follow the steps below:

Apply for Opening a Franchise 

After completing the steps above, it is now time to apply for opening a Raising Cane’s franchise. You will receive an email with the confirmation receipt once Raising Cane’s franchise team receives your application. 

Invitation to Visit the Company’s Headquarters 

If the company considers you a suitable candidate, it will approve your application. Then, you will receive an invite to visit the company’s headquarters in Louisiana. You will be attending a Discovery Day there. This event will help you get more clarity about the company’s business models, training and support, and franchise operations.

Sign the Dotted Line

If the company gives you approval to start a Raising Cane’s franchise, you will be required to sign a franchise agreement. The agreement will contain all the terms and conditions related to your franchise ownership. This will include the initial franchise fees, royalty fees, and marketing fees.

Finalize a Location 

Raising Cane’s will help you in finding the appropriate location for your franchise. It prefers your franchise location to be in areas where there is high traffic, where there are many residential areas and more. 

Open Your Franchise 

Once you have decided and secured your location, Raising Cane’s will guide you in building and opening your franchise restaurant. The company will provide training programs for you and your staff, assist with design and construction, and offer continuous support from Raising Cane’s support office.

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Wrapping Up 

Raising Cane’s popularity within a short period of time is purely due to its dedication, quality, simplicity, and outstanding customer service. It also offers its franchisees a good supportive environment and a successful business opportunity. With all these positives and a great fan following for its dishes, Raising Cane’s is here to stay.

About Carson Derrow

My name is Carson Derrow I'm an entrepreneur, professional blogger, and marketer from Arkansas. I've been writing for startups and small businesses since 2012. I share the latest business news, tools, resources, and marketing tips to help startups and small businesses to grow their business.