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The Pro's And Con's
Of Investing In A
Chick-Fil-A Franchise

Chick-fil-A refers to its franchisees as "operators," and becoming one isn't simple. Chick-fil-A has an acceptance rate of less than 1% among franchisees, comparable to Harvard and Stanford—in fact, it's lower.


A Chick-fil-A franchise fee costs almost $10,000. You pay all lease and labor costs out of pocket, along with 15% royalty.


Two reasons Chick-fil-A is an attractive opportunity are their loyal customer base and the revenue this loyalty generates.

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Chick-fil-A pros
Alongside their devoted customers and revenue potential, Chick-fil-A offers many benefits, including:

  • Through their multi-week training program and development courses, they provide extensive franchisee support.

  • They have a significantly lower franchise fee than their competitors.

  • The franchisor covers the bulk of startup expenditures, such as real estate and construction.

  • You're supplied with all of the equipment you'll need as a franchisor.

  • No prior restaurant experience is necessary

  • Closed on Sundays to encourage a good work-life balance

 

Chick-fil-A cons
While this franchise has many advantages that stand out, there are some cons to consider.

  • Franchisor selects all restaurant sites. You cannot choose or suggest your own location.

  • There are no multi-unit possibilities available.

  • Chick-fil-A owns all property and real estate. (You cannot sell your restaurant or pass down to the next generation).

  • There have been several negative news reports about their charity giving.

  • Rather of being a business owner, you may feel more like an employee/manager than a company owner. You are buying a job!

  • You must be a hands-on operator—making it a poor fit for the passive investor.

  • Chick-fil-A must be your full-time commitment; you cannot be pursuing other business ventures at the same time.

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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. The average Chick-fil-A unit made around $4,090,900 in 2017.


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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