How Much Money Can You Make Owning A
Chick-fil-A® Franchise?
Is the franchise fee really $10K?
What's the catch?
The Chick-fil-A® franchise is one of the most iconic and beloved fast food restaurants in the United States. It has a long history and a loyal fan base that keeps customers coming back for more. But what makes it such a great franchise to own? Let’s dive into all the reasons why owning a Chick-fil-A® could be the right business move for you.
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Want Our Help Getting Approved For A Chick-fil-A® Franchise?
Contact The Franchise Insiders today! We can help you find the right franchise opportunity for you 100% free and can even save you up to $20,000 on a top franchise brand.
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How much does a Chick-fil-A franchise cost?
After you've read about Chick-fil-A's benefits and drawbacks, the next question on your mind is likely: How much does a Chick-fil-A franchise cost? The initial franchise fee for Chick-fil-A is only $10,000, which is far less than what their competitors charge:
Chick-fil-A: $10,000
McDonald’s: $45,000
Taco Bell: $45,000
Chipotle: $20,000
Dunkin’: $40,000
Wendy’s: $40,000
As you can see, Chick-fil-A's franchise fee is less than half of what its closest competitor charges.
Opening a Chick-fil-A franchise costs between $342,990 and $1,982,225, including a $10,000 franchise fee. Unlike most other franchisors, Chick-fil-A covers all opening expenses, meaning franchisees are on the hook only for that $10,000. That makes Chick-fil-A one of the least expensive major fast-food chains to buy into, by a long shot. Additionally, Chick-fil-A has no requirements for minimum net worth or liquid assets.
However, Chick-fil-A charges a 15% royalty and takes 50% of all profits for franchisees, which is by far the steepest structure of any quick-service brand.
Because Chick-fil-A covers all expenses involved in building and opening a restaurant, the franchisor also owns the real estate, building, equipment, and virtually everything else in the store; the franchisee simply operates the business.
Overall, Chick-fil-A's unorthodox strategy has paid off. Chick-fil-A makes more money per store than McDonald's, Burger King, or Wendy's, and doesn't even open on Sundays.
Franchise Fee:$10,000
Royalties: 15%
Total Investment: $342,990
Home Based: No
Absentee ownership available: No
Thinking about owning a franchise?
Contact The Franchise Insiders today! We can help you find the right franchise opportunity for you 100% free and can even save you up to $20,000 on a top franchise brand.
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Chick-fil-A' franchise pros and cons
Learn the pros and cons of franchising and becoming a chick fil a operator.
Get access to chick fil a income statement, and chick-fil-a investor relations.
Discover the disadvantages of owning a franchise vs an independent business and compare it to a franchise business business model as well as talk to a chic fil a business owner who has already signed a franchise contract along with other relevant independent business owners.
Annual Sales Volume of Franchised Operator Chick-fil-A Restaurants
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Less than $7,200,000: approximately 35%
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Between $7,200,000 and $9,000,000: approximately 34%
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Over $9,000,000: approximately 31%
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Average: $8,142,257 (849 of the 1,836 (or 46%) did as well or better than the average)
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Median: $7,969,510
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Highest: $17,153,144
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Lowest: $1,842,932
Financial Stability of Chick-fil-A® Franchises
If you’re looking to buy into a franchise, financial stability is an important factor to consider. Fortunately, Chick-fil-A® franchises are very financially stable and profitable, with high sales volume year after year. On top of that, franchising costs are low, with an initial investment ranging from $10,000 - $15,000 (plus an additional $5,000 for licensing fees). This means that the cost of starting your own Chick-fil-A® business is relatively low compared to other franchises.
Loyal Customer Base
Chick-fil-A® has built up an incredibly loyal customer base over its many years in business. Customers love the restaurant’s signature chicken sandwiches and waffle fries as well as its friendly staff and inviting atmosphere. As a result, customers keep coming back time and time again! This loyalty translates into higher sales volume for the franchise owners.
Easy To Operate Model
Another reason why owning a Chick-fil-A® can be a great business move is because it’s an easy model to operate. The process of opening one is fairly straightforward and you don’t need any prior experience in running a restaurant or managing employees. All you need is some basic business knowledge and sound operational skills! Plus, Chick-fil-A® provides extensive training materials for new franchisees so they can get up to speed quickly on how to manage their location successfully.
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