Opening a Chick-fil-A franchise costs just $10,000 — here's how to do it (2024)

But the odds of becoming a Chick-fil-A franchise operator are stacked against you.

About 60,000 people apply for a franchise each year, and only about 80 are selected, according to a company spokesperson, giving applicants about a 0.13% chance of success — only slightly better than the odds of a high-school basketball player getting drafted into the NBA (about 0.03%).

If you're eager to take the helm of one of the 120 Chick-fil-A stores that open each year, you can expect an arduous vetting process.

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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.

From there, you'll receive an application and take part in a series of interviews — adozen or more, according to Forbes. Some of the interviews are conducted via phone, but franchisees have reported being interviewed by video chat and in person as well. You can be dropped from the candidate program at any time, even after undergoing multiple rounds of interviews.

Read more: What it costs to open 12 of the biggest fast-food chains in the US, including McDonald's, Chick-fil-A, and Taco Bell

The Chick-fil-A team's interview process is lengthy — franchisees told Forbes that the process takes many months, and sometimes as long as a year. It's designed to review you holistically, considering factors that measure not just your professional competency but also factors like character and chemistry.

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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.

"Being a franchised Chick-fil-A Operator is anything but a passive investment," Chick-fil-A says on its website.

And the company wants franchisees to consider it their primary business — not an investment or one of several locations in a fast-food empire. Though there are exceptions, franchise operators generally get to run only one store at a time.

Read more: It costs nearly nothing to open a Chick-fil-A — but there's a catch

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At the same time, Chick-fil-A famously tries to hire operators who represent the core values of the company, so it looks for signals that you are active in the community where the store will be, and it evaluates your personal character.

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.

The good news is that if you are selected for a franchise, your personal financial stake in the franchise is low. You're asked to invest only $10,000, and the company pays all startup costs associated with building the store and getting it off the ground. In exchange, you are an "operator," not an "owner." You don't actually own the store — you can't sell it when you want to retire or make it part of an inheritance. Chick-fil-A owns the local business, the physical property, and the intellectual property.

If you're lucky enough to be one of the 0.13% of candidates who get selected and offered a store, the last phase of your franchise prep is an extensive multiweek training program. This training, which lasts about six weeks, is designed to teach the mechanics of running a fast-food restaurant — food preparation, accounting, customer relations, communications, maintenance, purchasing, planning, management skills, marketing, and more.

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And when you emerge from the training, you are the newest operator — not owner — of a Chick-fil-A location.

Opening a Chick-fil-A franchise costs just $10,000 — here's how to do it (2024)

FAQs

Is it true that it cost 10k to open Chick-fil-A? ›

While operating a Chick-fil-A restaurant franchise costs a modest $10,000 initial financial commitment, it requires a holistic commitment to own and operate the business in a hands-on manner.

How much money do you need to start a Chick-fil-A franchise? ›

Chick Fil A Franchise Cost Breakdown
Initial Franchise Fee$10,000
Opening Inventory$19,000 – $93,050
First Month's Rent of Equipment$750 – $5,000
First Month's Lease / Sublease of Premises$2,500 – $85,800
First Month's Insurance Expense$310 – $11,510
1 more row
Jul 22, 2022

Does it really cost 15k to start a Chick-fil-A business? ›

Chick-fil-A franchise operators pay just $10,000 to open a new restaurant in the US. About 60,000 people apply for a franchise each year, and less than 1% of them are eventually chosen. Here's what the process of opening a Chick-fil-A is like from start to finish. Visit Business Insider's homepage for more stories.

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

No minimum net worth: The franchisor does not have a requirement for minimum net worth or liquid assets like most of its competitors, such as Wendy's and Burger King. Potential business model: Chick-fil-A has been voted the second-largest quick-service chicken restaurant chain in the United States.

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

Chick Fil A Franchise Owner Salary
Annual SalaryMonthly Pay
Top Earners$242,000$20,166
75th Percentile$125,000$10,416
Average$86,197$7,183
25th Percentile$26,500$2,208

Is owning a Chick-fil-A easy? ›

Being a Chick-fil-A® Franchisee is a life investment

While it is an exceedingly rewarding opportunity, it does require long hours and leading a team of mostly young, hourly-paid employees. It's not for those seeking passive financial investment, working from the sidelines, or adding to a portfolio of business ventures.

What is Chick-fil-A royalty fee? ›

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.

What is the best franchise to buy? ›

The Best and How They Were Selected
RankFranchiseInitial Investment Needed
#1Taco Bell$576K - $3.4M
#2Popeyes Louisiana Kitchen$384K - $3.5M
#3Jersey Mike's Subs$194K - $955K
#4The UPS Store$122K - $508K
16 more rows
Sep 18, 2023

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

Cons of owning a Chick-fil-A franchise include significant financial investment requirements, encompassing both the initial investment and ongoing franchise fees and royalty payments. Additionally, strict operating procedures mandated by Chick-fil-A can constrain owners' creativity and flexibility.

Can I sell my Chick-fil-A franchise? ›

On top of that, the franchise agreement is specific to the individual who passed the application process — the business can't be sold or passed on to other family members. So, if you intend to buy a franchise you can later sell, Chick-fil-A isn't for you.

Do Chick-fil-A franchisees pay rent? ›

Startup costs for Chick-fil-A franchises are relatively low. That's because, unlike other franchises, Chick-fil-A actually purchases the real estate and all of the equipment required to open the business, and then leases them to you via monthly rent payments. That's good and bad.

What is the most profitable franchise to own? ›

What are the most profitable franchises to own?
  • Express Employment Professionals.
  • RE/MAX.
  • Wendy's.
  • Chick-Fil-A.
  • Ace Hardware.
  • UPS Store.
  • Matco Tools.
  • McDonald's.
Jan 3, 2024

How much does a McDonald's owner make? ›

The estimated total pay range for a Owner at McDonald's is $63K–$118K per year, which includes base salary and additional pay. The average Owner base salary at McDonald's is $84K per year. The average additional pay is $0 per year, which could include cash bonus, stock, commission, profit sharing or tips.

Why is it so cheap to own a Chick-fil-A? ›

Chick-fil-A franchise fees are low because it wants dedicated operators to adhere to its brand guidelines. They offer franchise opportunities for individuals interested in joining their successful fast-food chain known for its chicken-focused menu, exceptional customer service, and significant revenue per year.

Why is it only $10000 to open a Chick-fil-A? ›

The franchisee only pays the $10k franchise fee. Chick-fil-A pays for (and retains ownership of) everything — real estate, equipment, inventory — and in return, it takes a MUCH bigger piece of the pie. While a franchise like KFC takes 5% of sales, Chick-fil-A commands 15% of sales + 50% of any profit.

How much does it cost to run a Chick-fil-A? ›

Ongoing franchise fees

Once you're up and running, Chick-fil-A will charge you other ongoing fees: Base operating service fee: 15% of sales per month. Equipment rental: $750 to $5,000 per month. Advertising fee: 0% to 3.25% per month.

Why is Chick-fil-A franchise fee so low? ›

Chick-fil-A franchise fees are low because it wants dedicated operators to adhere to its brand guidelines. They offer franchise opportunities for individuals interested in joining their successful fast-food chain known for its chicken-focused menu, exceptional customer service, and significant revenue per year.

How much financial investment is required from someone wishing to start a Chick-fil-A restaurant? ›

Chick-fil-A Initial cost Breakdown:
BrandMin. Net Worth Requirementroyalty
McDonald's$ 500,0004%
Dunkin' Donuts$ 250,0005.9%
Subway$ 80,0008%
Chick-fil-A$ 10,00015% plus 50%
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Dec 6, 2021

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