Believe it or not, Chick-fil-A restaurants are more profitable and less expensive to open than big-name competitors. And by the 40,000 applications to own a franchise filed each year, it’s a tempting idea. But before you quit your day job for the chicken biz, here’s everything you need to know…
A Chick-fil-A Cost Up to 2X Less to Start than Its Largest Rival
According to recent numbers, Chick-fil-A is frying the rest of its competitors. The chain reported $22 billion in 2023 sales to Restaurant Business Online.
THAT MEANS THE CHICK-FIL-A FRANCHISE’s AVERAGE earnings are $9.4 MILLION A YEAR.
In contrast, McDonald’s revenue has dropped to $3.8 million per location…
On top of all that, CFA’s startup fee is $10,000 vs. the $45,000 fee of McD’s or Taco Bell!
A Chick-fil-A spokesperson made this comment to Business Insider on the inexpensive startup fees.
“THE CHALLENGE TO BECOMING A FRANCHISEE IS NEVER GOING TO BE MONEY. WE SEEK TO FIND BUSINESS-MINDED RESTAURANT OPERATORS WHO FIND GREAT JOY IN MAKING OTHER PEOPLE’S DAYS.”
Additionally, the brand does not have “thresholds” for the net worth of potential franchisees. It sounds like a deal you can’t refuse, but let’s look at the fine print…
But Can You Handle All the Red Tape and OTHER Fees?
While a McDonald’s franchise takes more capital to get off the ground, its monthly service cost is 5% of gross sales.
That’s it.
However, Chick-fil-A’s “Base Operating Fee” is 15% of sales plus 50% of net profits! All of that is if you can get through the rigorous application process, by the way…
Out of the 40,000 applications to open a restaurant, the chain selects roughly 75-80 annually.
Upon selection, there are many other restrictions such as:
- Cannot own other franchises
- Not allowed to transfer ownership
- The company can terminate your ownership for any reason in 30 days
When it comes to opening Chick-fil-A there are big pros and cons. The brand clearly only wants seriously committed franchise owners.
That’s something to consider if you’re thinking about opening one of your own.
Be Great,
GCTV Staff
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