Chick-fil-A Franchise Cost, Profit, Fee, Owner Salary, Rules

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.

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 Fee	Low	High
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 circumstances 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

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

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.

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.