Chick-fil-A Franchise Cost, Profit, Fee, Owner Salary, Rules | SkillsAndTech - SkillsAndTech (2024)

Chick-fil-A is one of the largest American fast food restaurant chains. Its headquarters is in College Park, Georgia. It was originally founded as the Dwarf Grill in 1946. In 1967, its name was changed to Chick-fil-A. The rebranding takes place in 1967. It was founded by S. Truett Cathy on 23rd May, 1936. Truett Cathy has made the decision to close on Sundays in 1946. The first restaurant was opened in Hapeville, Georgia. Having worked seven days a week in restaurants open 24 hours, Truett saw the importance of closing on Sundays so that he and his employees could set aside one day to rest and worship if they choose – a practice we uphold today.

Chick-fil-A® Franchisee offers the opportunity to build a business, shape a culture and invest in a better future. They are seeking franchise candidates in the U.S., Puerto Rico and Canada.

Table of Contents

Chick-fil-A Franchise

Franchising is not an opportunity for passive financial investment, working from the sidelines, or adding to a portfolio of business ventures. This business opportunity is a hands-on, life investment to own and operate a quick-service restaurant. It often requires long hours and leading a team of mostly young, hourly-paid employees. It’s hard work – but it’s exceedingly rewarding.

Chick-fil-A Cost, Investment

Chick-fil-A restaurant requires a relatively modest $10,000 initial financial commitment ($15,000 CAD in Canada).

Name of FeeLowHigh
Initial Franchise Fee$10,000$10,000
Opening Inventory$18,028$94,560
First Month’s Rental of Equipment$750$5,000
First Month’s Lease/Sublease of Premises$1,475$85,800
First Month’s Insurance Expense$282$11,165
Additional Funds$264,877$2,225,083
ESTIMATED TOTAL$295,412$2,431,608

Chick-Fil-A franchise Fees

All the leasing, rental, equipment, and other costs can total up to around 15% of the sales from the franchise, plus an additional 50% of the pretax profit. There is also a royalty fee of 15% back to the Chick-fil-A corporation, which is one of the highest royalty fees among most franchises!

However, you are able to get some financial assistance from the Chick-fil-A corporation. They do leases and subleases for the restaurants, which can be helpful for new franchisees. They also allow extended payment terms for certain re-opening circ*mstances that are under their Franchise Agreement. Not only that, but the company also provides rental for equipment that is based on a monthly fee on the fair market value rental price that’s determined by Chick-fil-A themselves.

Chick-Fil-A Franchise Profit, Revenue

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Chick-fil-A Franchise Advantages, Disadvantages

Chick-fil-A Jobs

The average Chick-fil-A restaurant generates around $5.3 million in gross annual sales which is way more than other lead quick-service restaurants like Popeyes, Subway, and almost double the leading fast-food restaurant McDonald’s.

Chick-Fil-A Franchise Owner Salary

Owners make $200,000 to $240,000 per year on average after considering annual fees. Chick-fil-A restaurants produce around $5.3 million in annual sales on average so between 5% – 7% of total sales will hit the bottom line after expenses.

Chick-Fil-A Franchise Sales

Chick-fil-A has over $10 billion in annual system-wide sales, which is impressive for the number of stores they have functioning. The company still has the opportunity to expand into any more areas since they only operate in 28 states at the time of writing.

Franchise Facts

Total Units 2,493

Incorporated Name: Chick-fil-A

Year of Establishment : 1946

Franchising since: 1987

Industry : Quick Food Services

Subsector: Restaurants

Chick-fil-A Brand Requirements:

The main and the basic requirement for taking Chick-fil-A franchise is that you must have a Licensing contract agreement with established food service companies. They don’t offer franchise to individual.

  • Licensing contract agreement with established food service companies
  • Closed on Sundays
  • Closed Christmas Day
  • Closed on Holidays like Thanksgiving

Application Process

How to Apply for Chick-fil-A Franchise?

The Chick-fil-A® Franchisee selection process is thorough and extensive. Candidates must possess a desire to operate a quick-service restaurant and be free of any other business ventures. They provide franchise at 3 places: in the U.S., Puerto Rico and Canada. You can apply at one place out of these 3 at one time.

Click here to apply for franchise

Tiered application

Candidates enter the process by submitting an initial online application. If selected to progress through additional tiers of the application process, you will be required to submit information about your previous work experience, leadership, financial health, and geographical preferences.

Virtual and in-person interviews

Applications are processed and prioritized based on need in growth markets. Candidates may indicate a geographical preference on their application.

Final selection

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Chick-fil-A Restaurant Wiki, Founder

Fast Food Business In India

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Final selection is made after the interview. There are more chances if you have personal connections to the community they hope to serve.

Training

Once selected, Chick-fil-A® Franchisees complete a multi-week training program prior to taking over the operation of a Chick-fil-A restaurant business.

The training programme will teach you how to run a fast food restaurant in every aspect. You don’t need to have had any prior experience because you can be trained as long as you’re willing to learn. While with other franchises you may have to worry about finding the right location and type of store you want to open, Chick-fil-A takes all the guesswork out of this process.

Webinars and live events

You can also learn more about the extensive application process by attending a webinar or in-person event to provide information about the Franchise opportunity.

Franchise Event

The company organises the webinars and live events for the queries related to franchise. If you want to know more or you have any questions, then you can attend the event. You can check the upcoming webinar live sessions and can attend them to know more about Chick-fil-A Franchise. Click here

If you complete the basic requirements, then you can pre-register for webinar.

Please pre-register ONLY if the following applies to you:

  • You have NOT completed the official Expression of Interest
  • Have a personal interest in becoming a Chick-fil-A® Franchisee
  • You are able to pay Chick-fil-A® the initial $10,000 franchise fee with non-gifted, non-borrowed funds, non-retirement funds
  • You are prepared to devote yourself full-time in the day-to-day, hands-on operation of a franchised Chick-fil-A restaurant
  • You have at least 5+ years of work experience
  • You have supervised or led at least 5 or more people in all of your work experience (direct/or in direct)
  • You have NOT filed for bankruptcy or for general protection from your creditors

FAQ

Should you take the Chick-fil-A franchise as a Side Business?

No, if you’re looking for a franchise to make passive income or add to an investment portfolio, Chick-fil-A is not your solution. The company clearly states on their website that they require you to make a full-time commitment to manage this hands-on operation. In other words, you need to be prepared to be active in the day-to-day operations of the business.

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While some may want to delegate tasks to management and other leaders, Chick-fil-A values a proactive franchise owner and will not accept those that are not ready or committed to this role.

How much does chick fil a franchise owner make?

Owners make $200,000 to $240,000 per year on average after considering annual fees.

Is the Chick-fil-A Profitable Franchise for You?

Based on the estimated annual salary of $200,000 to $240,000 for a Chick-fil-A franchisee, you can be confident you’ll live comfortably if you join the company and stick to the operations plan. However, the company is going to have a tight grip on your lifestyle if you decide to join them. There’s no guarantee you’ll make it through the companies franchisee vetting process either.

Chick-fil-A requires you to be hands-on and work in the store as a franchise owner. They are not going to allow you to have this restaurant as a side gig or passive investment. The restaurant must be your main focus. This requirement helps maintain the high customer service reputation by choosing owners that are truly invested in running the business. The company works hard to weed out people who are not in the same mindset as them or share the same core values as them during the interview process.

You’re considered lucky if you’re able to open a Chick-fil-A restaurant and be accepted into the company. However, be ready to dive in full throttle because they are not going to let in people who only want this business as a part of a broader investment portfolio.

Why Chick-fil-A Restaurant closed on Sundays and Holidays?

This brand has a core emphasis on Christian values and beliefs, so make sure your belief system aligns with the corporate culture. For instance, Chick-fil-A is closed every Sunday and major holidays like Thanksgiving and Christmas. You can learn more about this opportunity and view emerging markets for the company at the companies official franchise website.

Can you apply for a Chick-fil-A franchise in the U.S., Puerto Rico and Canada simultaneously?

No, you cannot apply for a franchise opportunity in the U.S, Puerto Rico and Canada simultaneously. You can apply for only one place.

Is it easy to get Chick-fil-A’s franchise?

Chick-fil-A gets to know candidates before partnering for a franchise. So, the selection process is intensive and lengthy.

According to Chick-fil-A, success is directly tied to passion and Franchisees bring to their local businesses. They take great care in selecting the person to whom they are doing the business.

Franchisees spend their time and resources to build the Chick-fil-A brand and continue the incredible legacy.

Who can apply for Chick-fil-A Eligibility

Chick-fil-A licensing opportunities are available to licensed food service providers and self-operated food service providers in university and college campuses, airports, healthcare facilities, or business and industry venues. Licensing opportunities are not available to individuals.

How to get selected for Chick-fil-A Franchise?

It’s not so easy to get a Chick-fil-A franchise. The company only accepts about 75 to 80 new franchises each year, despite the fact that it receives around 20,000 applications on an annual basis. That means about 0.4 percent of applicants get approved. By contrast, Harvard Business School accepted 11 percent of its applicants for the Class of 2019.

But you know, here is a glitch. The company has its focus on expanding its business. So, while applying for Chick-fil-A Franchise keep the super location in your mind. It will increase the chances for your application to get accepted.

Conclusion

With their intense beliefs and values, Chick-fil-A does have a rigorous application and interview process. You’ll go through approximately 12 interviews or more and at any time, and will be dropped if you don’t meet their criteria. Even if you have the base financial requirements, Chick-fil-A looks for much more than that. Every year they will only take in 75-80 franchises, from a pool of more than 20,000 applications. From an odds standpoint, Chick-fil-A is tougher to get into than Harvard.

Chick-fil-A Franchise Cost, Profit, Fee, Owner Salary, Rules | SkillsAndTech - SkillsAndTech (2024)

FAQs

How much income does a Chick-fil-A franchise owner make? ›

We know that the average investment to open a Chick-Fil-A franchise is $1,363,510. Yet in comparison you earn around 15% net profit per year (industry average) ie. $634,000 per year.

How much profit does Chick-fil-A take from franchise? ›

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, by far the steepest structure of any quick-service brand.

Does it cost $10000 to own a Chick-fil-A franchise? ›

While operating a Chick-fil-A restaurant requires a relatively modest $10,000 initial financial commitment ($15,000 CAD in Canada), it requires a holistic commitment to own and operate the business in a hands-on manner. We are in the restaurant industry - the quick-service restaurant industry, at that.

Do franchise owners set salary? ›

Unlike most career opportunities, franchise owners don't have standard, flat-rate salaries. Instead, both a franchise owner and a franchisor make money through the business' success. A franchisor makes money from royalties and fees paid by the franchise owners.

What are the cons of owning a Chick-fil-A franchise? ›

Chick-fil-A cons
  • Franchisor selects all restaurant sites (you cannot choose or suggest your own location)
  • No multi-unit opportunities available.
  • Chick-fil-A owns all property and real estate (you cannot sell your restaurant or pass down to the next generation)
  • History of negative press related to their charitable giving.
Oct 22, 2020

What are the odds of becoming a Chick-fil-A franchise owner? ›

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.

What percent is Chick-fil-A franchise fee? ›

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.

How much profit does Chick-fil-A make per day? ›

Chick-fil-A makes millions of dollars a day.

A single Chik-fil-A location earns approximately $19,442 per day, meaning an average Chik-fil-A location's annual profits are slightly over $7 million. The franchise has thousands of locations across the country, meaning that it is pulling in millions of dollars daily.

What food has the highest profit margin? ›

Profitable Food Business Ideas
  • Honey production – 30% average profit margin.
  • Coffee shop – 25% average profit margin.
  • Popcorn business – 22% average profit margin.
  • Custom cakes – 19% average profit margin.
  • Chicken poultry -17% average profit margin.
  • Pizza – 15% average profit margin.
  • Fruit juice – 14% average profit margin.

What does the average Chick-fil-A owner make? ›

How much does a Business Owner make at Chick-fil-A in the United States? The estimated average pay for Business Owner at this company in the United States is $22.51 per hour, which is 43% above the national average.

How often are Chick-fil-A royalty fees paid? ›

Chick-Fil-A Franchise Fee and Costs (Ongoing):

The corporation pays for the land, construction, and equipment of the restaurant. Therefore, it rents or subleases the property to the franchisee for 15% of sales plus 50% of pretax profit remaining (Paid Monthly).

How many Chick-fil-A franchises can one person own? ›

Chick-fil-A, Inc. offers qualified individuals the opportunity to operate a single Chick-fil-A® franchised restaurant. The restaurant can be located in a mall, or it could be a free-standing, Drive-thru only, or an in-line location. We do not offer multi-unit franchise opportunities to initial applicants.

Do franchise owners keep all profits? ›

As a franchisee, you earn money from the franchise's profits. This means that after your overhead costs are covered, you can draw a salary from the remaining profits. Most franchises have a series of expenses to consider.

What percentage do franchise owners take? ›

Franchise royalties range from 4% of your revenue all the way up to 12% or more. The amount has to do with the type of franchise business. For example, a food franchise is a high-volume business. A lot of individual items are purchased by a high-volume of customers.

Can you make a living owning a franchise? ›

The bottom line is that while a franchise can make you independently wealthy, it isn't a guarantee. Choosing the right business in the right industry, and going in with preexisting entrepreneurial experience and/or existing wealth can help, but your income-generating potential may still be somewhat limited.

What are 3 disadvantages of owning a franchise? ›

Disadvantages of Franchising
  • Limited creative opportunities. ...
  • Financial information is shared with the franchisor. ...
  • Varied levels of support. ...
  • Initial investments and start-up costs can be expensive. ...
  • Contracts aren't permanent. ...
  • You're your own boss, but you have less individual control.
Aug 30, 2021

What are some weaknesses of Chick-fil-A? ›

Chick-fil-A's strengths include its strong brand recognition, loyal customer base, and high-quality menu items. Its weaknesses include its limited menu options and lack of international presence. The chain has numerous opportunities for growth, such as expanding its menu and increasing its online presence.

Why does it only cost $10,000 to open a Chick fil A? ›

The reason for this? Unlike other franchise models, Chick-fil-A — not the franchisee — covers nearly the entire cost of opening each new restaurant (which, according to its financial disclosures, runs from $343k to $2m). The franchisee only pays the $10k franchise fee.

What does it mean to be a Chick-fil-A franchise owner? ›

Chick-Fil-A owns it and you're considered an “Operator.” This means you can't sell your Chick-Fil-A location or pass it on to anyone. Chick-Fil-A insists that the Franchise owners of their fast food restaurants work at their location full-time running the day-to-day operations.

How likely is it to open a Chick-fil-A? ›

Less than 1% of people who apply to become a Chick-fil-A franchisee actually succeed. So, if you want a chance at being one of the few selected, you need to be prepared.

What is the average franchise fee percentage? ›

Franchise royalties range from 4% of your revenue all the way up to 12% or more. The amount has to do with the type of franchise business.

How many franchises does Chick-fil-A have in total? ›

Currently, Chick-fil-A serves freshly prepared food in more than 2,600 restaurants across 47 states, Washington, D.C., Canada and Puerto Rico.

Why does Chick-fil-A make so much money? ›

How Chick-fil-A makes money. Chick-fil-A makes money majorly from two sources: 15% of the total sales from the franchisees and also 50% from all their franchisees. The returns are one of the highest in the food chain industry, and there is a reason why it is so.

Who makes more money McDonald's or Chick-fil-A? ›

chick fil A makes more per restaurant than McDonald's, Starbucks, and Subway combined.

Where is the busiest Chick-fil-A? ›

  • The Chick-Fil-A store located in Midtown Manhattan at 1000 6th Avenue, New York, New York, is the busiest in the United States.
  • This store processes up to 3,500 transactions per day, which is 1 purchase every 16 seconds maintained over 15.5 hours of business every day!

What is the most profitable item in fast food? ›

Here are a few recommendations for profitable fast-food items for your restaurant.
  • Specifying Meals. Provide customers with the specific meals for the time of their order. ...
  • Hot and Cold Beverages. ...
  • Soups and Stews. ...
  • Pizzas. ...
  • Special Kids Menu. ...
  • Nose-to-Tail Items. ...
  • Providing Add-ons and Side Options. ...
  • Using Deals and Offers.
Feb 16, 2021

What company has the best profit margins? ›

Apple was the most profitable company in 2022, yielding just under $100 billion of net income.

What is the most profitable business? ›

Most Profitable Business Ideas
  • Business Consulting. If you're an expert in your industry and have been working at it for years, you should consider consulting. ...
  • IT Support, Technology Consulting, and Repair. ...
  • Cleaning Services. ...
  • Accounting and Tax Preparation. ...
  • Auto Repair. ...
  • Real Estate. ...
  • Online courses. ...
  • Marketing and PR Services.

Who is the youngest Chick-fil-A owner? ›

When Ashley Lamothe first started her job at Chic-Fil-A at age 15, she had no idea the journey would lead to her becoming the company's youngest owner at age 26 when opening in 2011, according to Black Business.

Does Chick-fil-A make the most money? ›

To be in the fast-food chain making the most money per store, you'll have to eat mor chikin. That's right: Chick-fil-A stores are the highest earners in the industry. With only about 2,225 stores around the country making a $9 billion total, each one rakes in $4.1 million in a year. That's a lot of chicken!

Why is Chick-fil-A so efficient? ›

Chick-fil-A has no fewer than three “Innovation Centers” where the chain tests restaurant layouts to maximize efficiency for various operations. So many people marvel at Chick-fil-A's drive-thru mastery that it came as a shock to many to learn the chain's drive-thru times are actually longer than its competitors.

How much money does it take to get signature at Chick-fil-A? ›

Chick-fil-A One Signature Status (achieved upon earning 10,000 or more points in a year)

Do franchisees pay royalty fees? ›

In addition to charging an upfront franchise fee, franchises also charge ongoing royalties. If you're looking at investing in a franchise, it's time to start getting comfortable with the idea of paying both. A royalty fee is an ongoing fee that a franchisee pays to the franchisor.

How long is Chick-fil-A franchise agreement? ›

Term of Agreement and Renewal: The initial franchise term terminates on the earlier of December 31 of year the agreement is signed or when the lease expires, if earlier. The term is automatically extended for one-year periods unless written notice given at least 30 days prior to end of existing term by either party.

What is the highest Chick-fil-A member you can be? ›

Chick-fil-A One® has four membership tiers: Chick-fil-A One Member, Chick-fil-A One Silver Member, Chick-fil-A One Red Member, and Chick-fil-A One Signature Member. To learn more about the benefits of each tier, visit our Chick-fil-A One page.

What does Chick-fil-A ask when they interview potential franchise owners? ›

The most striking thing I learned: the single, key question that Chick-fil-A asks applicants over and over, in interview after interview. That deceptively simple question is: "Why do you want to own a Chick-fil-A franchise restaurant?"

How much is Chick-fil-A owners worth? ›

Daniel Truett Cathy (born March 1, 1953) is an American businessman. He is the chairman of fast-food chain Chick-fil-A, which was founded and expanded by his father, S. Truett Cathy. He has a net worth of $7.1 billion as of November 2020.

What are 5 disadvantages of owning a franchise? ›

There are 5 main disadvantages to buying a franchise:
  • 1 - Costs and Fees. ...
  • 2 – Lack of Independence. ...
  • 3 – Guilt by Association. ...
  • 4 – Limited Growth Potential. ...
  • 5 – Restrictive franchise agreements.
Feb 23, 2021

Can franchise owners get in trouble? ›

Your franchise agreement can also be terminated if you fail to pay royalty fees. If you don't pay these fees on time or at all, the franchisor has the right to terminate the franchise agreement. You increase your chances of being terminated if you fail to pay multiple times.

Do franchise owners control prices? ›

The ability to control a franchisee's pricing is often set forth in the franchise agreement signed by the franchisor and franchisee. Sometimes, the franchisor reserves the right to determine a franchisee's resale prices. Other times, the franchisee will have ultimate authority over its pricing.

Why does it only cost $10,000 to open a Chick-fil-A? ›

The reason for this? Unlike other franchise models, Chick-fil-A — not the franchisee — covers nearly the entire cost of opening each new restaurant (which, according to its financial disclosures, runs from $343k to $2m). The franchisee only pays the $10k franchise fee.

How wealthy is Chick-fil-A owner? ›

Daniel Truett Cathy (born March 1, 1953) is an American businessman. He is the chairman of fast-food chain Chick-fil-A, which was founded and expanded by his father, S. Truett Cathy. He has a net worth of $7.1 billion as of November 2020.
...
Dan Cathy
Children2
RelativesS. Truett Cathy (father) Bubba Cathy (brother)
3 more rows

How much net worth do you need to own a Chick-fil-A? ›

To open a Chick-fil-A you need $10,000 in liquid capital and a net worth of $10,000. Liquid capital is the amount you need on hand to be eligible for the agreement. Net worth is the amount of your assets combined, which include the amount you have in investments, savings, retirement accounts, property or other assets.

How much does a franchise owner make? ›

On average, typical franchisees make about 80,000 dollars a year, not considering tax and expenses. Only a small part of franchise owners make over $200,000 annually, more than fifty percent of franchisees make about $50,000. The industry you're operating in impacts the amount of profit as well.

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