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
- 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 form, or book a call on his calendar now to learn how.