How to Open a Chick-fil-A Franchise

chick fil a franchise

Are you interested in owning your own Chick-fil-A franchise? If so, you’re likely wondering about the ownership process and what’s involved.

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 they now have 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 know a little bit more about Chick-fil-A and what they offer, it’s time to decide if owning one of their franchises is right for you. Here are a few things to consider:

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 insists that the Franchise owners of their fast food restaurants work at their location full-time running the day-to-day operations. This is not a passive investment, unlike many other franchises.
  • 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:

1. 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.

2. Submit an application

After attending an informational session, you’ll be able to submit an online application. Once your application is reviewed, you’ll be contacted to schedule an interview. To prepare for your interview, it’s a good idea to review the company’s history and values.

3. Interview with Chick-fil-A

During your interview, you’ll meet with a franchising representative from the Chick-Fil-A corporation who will ask you questions about your background, experience, and why you want to own a Chick-fil-A franchise. They will also assess whether you’re a good fit for the company. This is also a good time for you to ask any questions you may have about the franchising process.

4. 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.

5. Complete training

After you’ve signed your franchise agreement, you’ll need to complete a multi-week training program at Chick-fil-A’s Restaurant Support Center in Atlanta, Georgia. This program will teach you everything you need to know about running a Chick-fil-A restaurant.

 

 

6. 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 behind only McDonald’s which has over $40 billion in annual sales. On average, owners make $220,000 per year. Chick-fil-A restaurants also average $5.3 million in annual sales.

Important Information for Prospective Chick-fil-A Franchisees

If you’re looking to open a Chick-fil-A franchise, there are a few more things you should know, such as:

  • 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.
  • Chick-fil-A not only has locations in 47 states across the United States and Washington D.C., but also in 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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This article, "How to Open a Chick-fil-A Franchise" was first published on Small Business Trends



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