Why So Many Want to Own a Chick-fil-A Franchise but Can’t

Published on
October 17, 2022

Let’s talk about owning a Chick-fil-A Franchise

Why not? Chick-fil-A, which started in 1967, has among the most profitable franchise locations of any franchise system in the U.S.  And, your out-of-pocket investment cost of owning a Chick-fil-A franchise are extremely low compared to other franchise systems.

Chick-fil-A positions itself as the home of the “Original Chicken Sandwich with two pickles on a toasted bun.”  Most know it as an extremely popular fast-food, quick-service restaurant (QSR) franchise brand. Just check their parking lots when you drive by one. Of course, unless it is a Sunday when all locations are closed.

Chick-fil-A, as of 2022, has almost 3,000 restaurants spread across 49 states and Canada. They focus on a small menu and excellent customer service. The chain offers a breakfast menu as well as a lunch and dinner menu. Like many of us, have you ever wondered what the capital “A” stands for? The "A" is meant to convey grade-A top-quality ingredients are used.

What are the Benefits of Owning a Chick-fil-A Franchise?

  • At $10,000, it has one of the lowest upfront investments among franchise brands
  • Chick-fil-A pays for all the costs of starting a location, covering the site, and building the facility, all of which can cost upwards of one to two million dollars.
  • The earning potential is excellent, with many franchise owners earning $300,000 or more yearly.

But it’s tough to become a franchise owner

  • 20,000 new applications are submitted each year. That’s about 55 new applications submitted every single day.
  • Less than 1% of those applicants are awarded a franchise. That’s less than 1 out of every 200 applicants.
  • You must have significant prior restaurant experience
  • You must have solid personal finances
  • You must have advanced education
  • You must have strong leadership skills
  • You must have the ability to engage the community
  • You must be willing to work 50-60 hours per week

Other disadvantages

  • Your franchise agreement is for a one-year term and can be renewed annually. Most franchise agreements of other brands are for 10-year renewable terms.
  • Chick-fil-A can terminate your franchise agreement for any reason and at any time.
  • You don’t own any equity in your location; Chick-fil-A owns it all
  • Most franchise owners are only allowed to operate one location
  • You are not allowed to own any other businesses
  • Chick-fil-A chooses your location, and it’s getting harder to find available territory

While the benefits of owning a Chick-fil-A franchise are great, becoming one is similar to your chances of winning the lottery. In any case, if you are the lucky one awarded a franchise, you will be worked to the bone and can be fired at any time and for any reason.

When you realize the low probability of getting a Chick-fil-A franchise, and you are open to other franchise concepts, contact franchise expert Jay Friedman via our contact formor book a call on his calendar now to learn how.

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