Can you own multiple Chick-fil-A's?
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.
A clever business person can certainly own more than one franchise, and there are several ways to go about this. A multi-unit franchise is one in which the franchisee agrees to purchase and run several (or many) franchises of the same type.
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.
Jan 14, 2021. 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.
Can You Own More Than One Franchise? A franchisee can own more than one franchise of the same brand. Being a multi-unit franchisee is different than single-unit franchise ownership, however, which requires hands-on involvement.
Buying a franchise usually starts off as exciting and exhilarating, but franchise veterans will quickly tell you that after the excitement comes stress and more stress. There are so many things to consider when it comes time to buy a franchise (as well as before you buy), and it can be overwhelming.
A very selective process
According to an article from The Washington Post, Chick-fil-A only accepts 100 to 115 franchisees from the 40,000 who apply every year. That means only 0.25 percent of applicants are chosen (your kids' chances of getting into Harvard are better!).
In 2019 its average annual unit volume was $4.7 million, according to Restaurant Business sister company Technomic. That's all units. According to Chick-fil-A's franchise disclosure document, however, its standalone, non-mall locations make a lot more than that, about $6.5 million on average.
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.
Former Intern is Now the Owner of San Diego's Only Black-Owned Chick-fil-A Restaurant. Amber Thomas, who was an intern at Chick-fil-A just five years ago, is now the owner of her very own Chick-Fil-A restaurant franchise in her hometown of Spring Valley, California, a suburb of San Diego.
What are some cons about Chick-fil-A?
They seem a little over-obsessed with the scripting (what you are to say to guests). Lots of teenage coworkers, and high employee turnover rate. The store that I work at is too small for the volume of people that come, so the kitchen is always crowded and chaotic. Working so fast can be very stressful.
At $4.2m per store, Chick-fil-A's average revenue is the highest of any fast-food chain in America, dwarfing both direct competitors (KFC; $1.2m) and bigger brands (McDonald's; $2.8m).
Multi-unit franchising may be more profitable and efficient, but because the investment is greater, it may take longer to break even and turn a profit.
Piggyback (Combination) Franchising- “Piggyback” or “Combination Franchising”, as it is sometimes known, is in essence a business within a business i.e. a combination of two franchises operating under the same roof.
- Single business entity with multiple DBAs. ...
- Form separate LLCs or corporations for each business unit. ...
- Create a holding company with separate LLCs or corporations beneath it. ...
- Each to their own — the importance of considering each client's unique situation.
Buying a franchise means entering into a formal agreement with your franchisor. Franchise agreements dictate how you run the business, so there may be little room for creativity. There are usually restrictions on where you operate, the products you sell and the suppliers you use.
- Fads. Successful and well-known franchisors have usually been in business for several years, but there are certainly some newer franchise brands that are doing very well. ...
- Regionality and Seasonality. ...
- Recession Resistance. ...
- Capital Risk. ...
- Government Regulations.
Buying a franchise might seem like easy money, but those royalties and fees will quickly cut into profit margins. The majority of franchise owners earn less than $50,000 per year.
In 1946, Truett Cathy opened a tiny diner called the Dwarf Grill in Hapeville, Georgia. It was in this diner where Truett developed the signature Original Chick-fil-A® Chicken Sandwich and the quality service for which the family-owned business is known.
The Cathys are the family behind Chick-fil-A, a popular and highly profitable fast-food chain. With a collective net worth of $14.2 billion, they're America's 21st-richest family "dynasty," according to a recent report. In 2019, Chick-fil-A generated $11.3 billion in sales. See more stories on Insider's business page.
Can you invest in Chick-fil-A?
Chick-fil-A is a private, family-owned company and does not offer stock options to the public. If you are interested in investing in Chick-fil-A by applying to become a franchised Owner/Operator, check our franchise page to learn more about opportunities in the U.S., Canada and Puerto Rico. Was this answer helpful?
