Corporate QSR Cap Rates Sit 97 Bps Below Franchisee Deals

Corporate QSR properties carried a 5.90% asking cap rate in Q3 2026, 97 basis points below franchisee assets, and the gap held across lease terms.
Corporate QSR Cap Rates Sit 97 Bps Below Franchisee Deals
  • Corporate QSR asking cap rates reached 5.90% in Q3 2026, versus 6.87% for franchisee properties, a 97-basis-point gap that narrowed slightly from 100 basis points in Q2.
  • The pricing premium appears in every lease-duration band, widest at 100 basis points for leases with 20 or more years remaining and 70 basis points for shorter terms.
  • Brand and lease structure matter as much as ownership: Chick-fil-A and McDonald’s ground leases ask 4.50%, while Starbucks asks 6.50%, so investors need to compare brand and term.
Key Takeaways

Corporate quick-service restaurant properties entered the third quarter with asking cap rates nearly a full percentage point below franchisee assets, according to The Boulder Group’s latest Net Lease Market Report.

Corporate QSR asking cap rates reached 5.90% in Q3 2026, compared with 6.87% for franchisee properties.

A Gap Narrows Slightly

The 97-basis-point difference narrowed from 100 basis points in Q2. Corporate rates rose 5 basis points over the quarter, while franchisee rates rose 2.

The Gap Across Lease Terms

The separation was widest among the longest leases. Corporate QSR properties with at least 20 years remaining had a median asking cap rate of 5.00%, versus 6.00% for franchisee assets.

For leases with 15 to 19 years remaining, the figures were 5.55% and 6.40%, an 85-basis-point difference.

The gap narrowed to 70 basis points in both shorter-term categories. Corporate properties with 10 to 14 years remaining asked 6.15% against 6.85% for franchisee properties, and those with fewer than 10 years asked 6.85% against 7.55%.

Rates rose as remaining terms shortened in both categories.

Corporate Brands Price Differently

Within the corporate category, Raising Cane’s asked 5.15%, Chipotle 5.50%, Panera Bread 6.00% and Starbucks 6.50%. Chipotle and Starbucks held steady in Q3, Raising Cane’s rose 5 basis points and Panera rose 10.

Chick-fil-A and McDonald’s sat at the low end with ground-lease asking cap rates of 4.50% each, both up 5 basis points from Q2. Boulder separates those ground leases from the other brand entries.

Franchisee Pricing Shows Its Range

Franchisee properties varied as well. Taco Bell asked 5.55%, followed by Wendy’s at 6.00%, Dunkin’ at 6.10%, Burger King at 6.43% and KFC at 6.65%.

Wendy’s recorded the largest quarterly increase among listed franchisee brands at 15 basis points. Dunkin’ moved the other way, down 2 basis points, while the remaining brands rose 3 to 5.

Why It Matters

The category-level rates are a starting point, not a pricing answer. A 4.50% ground lease and a 6.50% Starbucks asking rate sit in the same corporate bucket, so lease structure is part of the comparison.

Brand shifts also move the market, as the Burger King and Wendy’s stories show.

What’s Next

Investors assessing QSR asking prices should combine the corporate or franchisee designation with brand, lease structure and remaining term. Watch whether the 97-basis-point premium keeps narrowing as franchisee rates adjust.

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