Are you considering owning a Chick-fil-A franchise? If that’s the case, you probably have questions about the ownership process and what it entails.
In this blog post, we’ll answer some of the most commonly asked questions about Chick-fil-A franchising. We’ll also provide a few tips to help you determine if owning a Chick-fil-A is the right choice for you.
So, whether you’re just starting to explore franchise opportunities or you’re ready to take the next step, keep reading for helpful information about Chick-fil-A ownership.
What is a Chick-fil-A Franchise?
A Chick-fil-A franchise is a restaurant chain specializing in chicken sandwiches and other related menu items. Their logo is a Chick-fil-A cow standing in front of the restaurant with the words “Eat Mor Chikin” written on it.
Their headquarters is located in College Park, Georgia. The first Chick-fil-A restaurant opened in 1967 in Atlanta, Georgia, and it now has over 2,800 restaurants, mostly in the US. Chick-fil-A stands out among fast-food franchises due to its unique operating model and financial structure, which includes minimal initial investment for franchisees and high revenue per store.
Chick-fil-A Franchise History
The company was founded in 1946 by S. Truett Cathy. The franchise model is based on a simple formula: produce a quality product at a reasonable price and provide excellent customer service.
This has helped Chick-fil-A to become one of the most successful restaurant chains in the country. In addition to its menu items, the company is also known for its Christian values and conservative stance on social issues. This has occasionally led to controversy, but it has also endeared the company to a loyal customer base.
Is a Chick-fil-A Franchise Right for You?
Now that you have gained some insight into Chick-fil-A and the services they provide, it’s time to determine whether owning a Chick-fil-A franchise is the right choice for you. Here are several factors to take into account:
Pros:
- Chick-fil-A pays for nearly all startup costs, including real estate, construction, and equipment, making the initial investment significantly lower compared to other fast-food franchises.
- Strong brand recognition and customer loyalty.
- Comprehensive training and support for franchisees.
- High average sales per unit.
Pros:
- Chick-fil-A is a well-established brand with a loyal customer base.
- They have a proven business model that is successful in both good and bad economic times.
- Their restaurants are generally located in high-traffic areas.
- Chick-fil-A offers comprehensive training and support for franchisees.
- They offer a unique product that is not easily replicated by their competitors.
Cons:
- You don’t actually own or receive any equity when you own a restaurant. 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 requires that franchise owners actively manage their fast food restaurants full-time, overseeing daily operations. This approach differs from many other franchises, where ownership can be more of a passive investment.
- A franchise owner cannot open multiple locations, which can limit your profits.
How Much Do Chick-fil-A Franchises Cost?
To get started with your own Chick-fil-A franchise, you’ll need to pay an initial investment of only $10,000. While the restaurant can cost anywhere between $342,990 and $1,982,225 to start, a franchisee is only responsible for the initial franchise fee. Chick-fil-A covers the rest.
How to Become a Chick-fil-A Franchisee
If you’re interested in becoming a franchisee, here are the steps:
Attend an informational session
You’ll first need to attend an informational session to learn more about the franchising process. During this session, you’ll have the opportunity to ask any questions you may have about owning a Chick-fil-A franchise.
Submit an application
After participating in an informational session, you will have the opportunity to submit an online application. Once your application is evaluated, you will be contacted to arrange an interview. To get ready for your interview, it is advisable to familiarize yourself with the company’s history and values.
Interview with Chick-fil-A
During your interview, you will meet with a franchising representative from the Chick-fil-A corporation. They will inquire about your background, experience, and your motivations for wanting to own a Chick-fil-A franchise. Additionally, they will evaluate whether you are a suitable match for the company. This is also an excellent opportunity for you to ask any questions you may have regarding the franchising process.
Be approved by the Franchise Board
If you’re approved by the Franchise Board, you’ll be able to sign a franchise agreement and begin the process of opening your own restaurant. If you’ve gotten this far, congratulations! Not many people are given the opportunity to become a franchisee of a Chick-fil-A fast food restaurant.
Complete training
After signing your franchise agreement, you will be required to undergo a multi-week training program at Chick-fil-A’s Restaurant Support Center located in Atlanta, Georgia. This program is designed to provide you with all the essential knowledge needed to effectively operate a Chick-fil-A restaurant.
Open your restaurant
Once you’ve completed training, you’ll be ready to open your own restaurant. You’ll be supported throughout the process by Chick-fil-A’s experienced team of franchise consultants. They’ll help you with everything from site selection to grand opening.
How Profitable Is a Chick-fil-A Franchise?
Chick-fil-A is one of the most profitable fast-food chains in the United States, bringing in over $11 billion in annual sales.
That’s second only to McDonald’s, which generates over $40 billion in annual sales. On average, franchise owners earn $220,000 each year. Additionally, Chick-fil-A restaurants typically achieve $5.3 million in annual sales.
Important Information for Prospective Chick-fil-A Franchisees
If you’re considering opening a Chick-fil-A franchise, there are several additional details you should be aware of, including:
- The chain is closed on Sundays, as well as on Thanksgiving and Christmas. This is due to the company’s religious roots. The founder, S. Truett Cathy, was a devout Southern Baptist.
- The Chick-fil-A franchise operates in 47 states throughout the United States, as well as in Washington D.C., Puerto Rico, Canada, South Africa, and the UK.
- In addition to the initial franchise fee of $10,000, Chick-fil-A operators pay a 15% royalty fee plus an additional 50% of pretax profit.
- What’s more, is that they require that their franchisees not have any other active business ventures. So if you’re a serial entrepreneur, being a Chick-Fil-A operator isn’t for you.
- There are over 20,000 applications yearly, but only 75 to 80 get accepted to open new franchises each year (about 0.4% on the high end). So it’s clear that competition for these spots is fierce.
- The selection process can take anywhere from 12 to 24 months. So if you’re thinking about opening a Chick-fil-A franchise, be prepared for a long and difficult process.
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