Ever wonder how much a Chick-fil-A franchise costs? How do you even go about starting your own Chick-fil-A franchise? This quick guide will help answer most of your franchising questions and set you on the path to franchise-ownership.
No matter the time of day, day of the week, or month of the year, it’s a safe bet your local Chick-fil-A franchise has a LONG line (both at the drive-through and in-store). Chick-fil-A has cooked up a recipe for success, quickly emerging as the fifth-largest food chain in the U.S. by sales. The restaurant’s success makes it an enticing prospect for entrepreneurs interested in starting a franchise. But how do you get in on the long lines, obsessive customers, and proprietary recipes for classics like the Spicy Chicken Deluxe, Waffle Fries, and Chick-fil-A Sauce? And how much does it actually cost?
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How Much Does A Chick-fil-A Franchise Cost?
Let’s take the easier question first–how much does it cost? In the restaurant franchise world, a Chick-fil-A franchise is comparatively cheap. Chick-fil-A does not charge an initial franchise fee and has no capital requirements, distinguishing itself from quick-service restaurant (“QSR”) competitors like McDonalds (initial franchise fee $45,000, liquid capital requirement $750,000), Burger King (initial franchise fee $50,000, liquid capital requirement $500,000, net worth requirement $1,500,000), and Taco Bell (initial franchise fee $25,000-$45,000, liquid capital requirement $750,000, net worth requirement $1,500,000).
Cost Breakdown
Nonetheless, opening a Chick-fil-A franchise still requires significant capital. The amount necessary to begin the operation of a Chick-fil-A franchise ranges from $252,000 to $2,689,000. The initial investment consists of:
Opening Inventory/Paper Supplies
$8,500 – $70,000
Utensils and Other Small wares
$5,000 – $18,000
Equipment/Signage
$50,000 – $300,000
Build-out
$25,000 – $1,250,000
Architectural, Mechanical, and other Drawings
$15,000 – $100,000
Additional Funds
$149,000 – $951,000
In addition to startup costs, a Chick-fil-A franchisee is required to pay a monthly licensing fee ranging from 7% to 10% of gross revenues. A Chick-fil-A franchisee may also have to pay additional, ancillary costs when necessary, such as a training fee ($250 per employee), a handling fee for equipment/signage purchases (7.25% of the purchase price), and an additional manual fee ($500). Most of which, however, are standard across the board for big QSR franchises. Again differentiating itself from its peers, Chick-fil-A does not require franchisee contributions for local or national advertising.
How Do I Start a Chick-fil-A Franchise?
No initial franchise fee and comparatively low startup costs and ongoing fees, what’s the catch? The catch is Chick-fil-A is extremely picky.
Chick-fil-A receives more than 20,000 inquiries from potential franchisees every year. Of those, Chick-fil-A selects between 75 to 80 new franchisees annually.
Chick-fil-A representative, Amanda Hannah, stated in a recent interview “[t]he barrier to entry for being a franchisee is never going to be money[ . . .] [w]e seek to find the very best business partners who find great joy in making other people’s days. They do so with a combination of great business acumen, an entrepreneurial spirit, and a passion for serving others.”
Potential franchisees can apply by completing and submitting a form on Chick-fil-A’s website.
Chick-fil-A then contacts candidates for interviews. The company may also interview candidates’ friends, family members, and business partners. Good luck and enjoy your waffle fries.
