Cost To Buy Chick Fil A Franchise
Instead of buying and developing new properties with their own money, most national chains (franchisors) will allow a party or individual (franchisee) to front the development bill and take a stab at ownership in exchange for a cut of the sales.
cost to buy chick fil a franchise
To better understand the capital required to acquire and launch a fast-food franchise, The Hustle spoke with more than a dozen franchise owners and analyzed data from franchise disclosure documents filed by 22 of the largest domestic chains.
For this reason, the estimated cost of a franchise is listed as a range in franchise disclosure reports. The chart below visualizes the lowest and highest range of what a given franchise might cost. (We ranked the results by the highest estimate.)
When properly leveraged, this model is a win-win for both parties: The chain can expand quickly and pass off the financial liability of owning and operating a store; the franchisee gets to own a business with a pre-established brand and a built-in customer base.
Becoming a Chick-fil-A Franchisee offers the opportunity to build a business, shape a culture and invest in a better future.We are seeking franchise candidates in the U.S., Puerto Rico and Canada. Read on below for more information about U.S. opportunities or click to be redirected to the Puerto Rican and Canadian applications. Please note you cannot apply for a franchise opportunity in the U.S., Puerto Rico and Canada simultaneously.
The total investment necessary to begin the operation of a franchised Chick-fil-A restaurant business is from $219,055 to $2,912,697. However, the Chick Fil A franchise is only responsible for $10,000. Chick Fil A corporation will invest up to $2 million or more to build the restaurant! This helps overcome traditional financial barriers of entry for potential franchisees, but opening a Chick-Fil-A is very competitive.
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Chick-fil-A is a privately owned and family-operated quick-service restaurant specializing in boneless chicken-based dishes. The Chick-fil-A franchise has gained a cult-like following that has propelled the brand from the American South, its base, to a nationwide chain of approximately 2,500 locations and estimated annual systemwide sales over $10 billion. With its emphasis on family, and its early reputation for outspoken Christian values, Chick-fil-A has invited some controversy while still attracting broad American appeal. More about the cost of owning a Chick-fil-A franchise below.
Chick-fil-A actively seeks franchisees, and invites accepted new owners to an extensive, multi-week training program before opening a restaurant, as well as offering follow-up support. The company is planning to expand particularly across the American Midwest and Mountain states, as well as in the Northeast, California, Texas and Florida. As a stipulation with owning a Chick-fil-A franchise, the restaurants must remain closed on Sundays.
Chick-fil-A has a distinct franchise business model. The Chick-fil-A franchise fee is a very accessible at $10,000. Chick-fil-A corporation will pay for land, construction and equipment for a restaurant, then rent it to the franchisee for 15% of sales plus 50% of pretax profit remaining. Therefore, startup costs are very low, in exchange for higher-than-usual monthly payments.
It begins when you officially apply to become a candidate. To decide if being a franchisee is right for you, Chick-fil-A offers informational sessions around the country that you can attend to learn more and get your questions answered, but they're not mandatory, and you can apply without attending. When you're ready to throw your hat into the ring, the process begins with simply entering your email address on the Chick-fil-A franchise-information page.
Part of the reason for this thoroughness is that the company isn't looking for an absentee store manager. As the company's corporate materials indicate, they expect franchise operators to give an enormous amount of personal attention to their franchises.
On the other hand, you may have read that Chick-fil-A insists that you have prior food-service experience, have managed a restaurant, or even have worked at a Chick-fil-A in particular. None of those things are true, according to the company, and in fact, some franchise operators have little or no experience with operating a fast-food restaurant. Chick-fil-A touts Jim Toth, a franchise operator in Temecula, California, who is a retired Marine with no prior food-service experience. Even so, more than half the candidates who are eventually offered franchises have some prior job experience with Chick-fil-A, the company says.
Chick-fil-A receives over 40,000 applicants each year. With a Chick-fil-A franchise fee of only $10,000; it initially seems like a great investment. But there are strict Chick-fil-A franchise requirements and a lengthy approval process which results in a less than one percent acceptance rate. The franchise fee is not the only cost involved. So, how much does it cost to open a Chick-fil-A franchise, and is it worth it in the long run? Here are some reasons why the franchise is such a hot commodity, and why it may be a less than favorable choice.
While this can be the case with some franchises, most will offer the option to own several locations. Chick-fil-A does not, and only allows for a single unit per franchisee. This can mean less profits, as you are limited to only one location.
The company wants their franchisees to be completely hands-on, and devoted solely to their Chick-fil-A franchise. In other words, if you are a serial entrepreneur: this is not the right franchise for you. They do not give a clear reason for this, but one could conclude that the company is not interested in creating conglomerates, and values quality over quantity.
Donatos Pizza is a force to be reckoned with, generating over $1 million in average net sales per year, with their top-performing restaurants doing over $2 million per year. They have 160 total franchised locations across the country, and are continuing to grow! The initial investment for a Donatos franchise is anywhere from $375,000 to $699,900, and the franchise fee is average for the industry, at $30,000.
East Coast Wings and Grill is not a Quick Serve establishment. However, the investment is a bargain compared to others in the industry. The total initial investment for an East Coast Wings and Grill franchise is in the range of $658,875 to $1,133,502, which is rather low in comparison to similar restaurants (Buffalo Wild Wings, for example, has a minimum initial investment of $1,997,700). The franchise fee is $40,000, and the average net (per unit) sales as of 2017 were $1,573,714 with a 15 percent net operating margin.
The food and beverage franchise segment offers many viable options to prospective franchisees, many of which are profitable and manageable. Chick-fil-A is a highly sought after franchise to own, and while it may be the right option for some, it is certainly not for everyone. We hope we have made your decision-making a bit easier, and if you want to learn more about the food and beverage segment, please check out our list of Top Food Franchises.
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Founded by Truett Cathy in Hapeville, Georgia in 1946, Chick-fil-A has expanded to become the largest chicken fast food franchise in the U.S. with over 1900 locations in 42 states. Based in Atlanta, GA, the franchise is still family owned and privately held. Each year thousands of entrepreneurs apply for a Chick-fil-A franchise but only a handful will actually receive the opportunity.
Chick-fil-A offers franchise opportunities for an initial investment of $10,000. Franchisees, who are called Operators, are given exclusive rights to operate a Chick-fil-A franchise after successfully completing the training program. Additional franchise support and training is also made available. 041b061a72