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Description
Investment Icon

Chick-fil-A Franchise Initial Investment Overview

To open a Chick-fil-A franchise, potential franchisees should be prepared for a significant initial investment, ranging from $585,500 to $3,337,000. This includes a franchise fee of $10,000 and ongoing royalty and marketing fees of 10% each. It's essential to have a cash requirement of at least $585,500 and a net worth between $150,000 and $1,000,000 to qualify for ownership. Understanding these financial commitments is crucial for aspiring franchisees to assess their readiness for this investment.

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Chick-fil-A Revenue Potential

Chick-fil-A franchisees can expect impressive revenue figures, with an average annual revenue per unit of $1,327,108. The median annual revenue is $1,110,784, while the lowest recorded revenue stands at $220,113 and the highest at an impressive $10,642,104. These figures highlight the brand's strong market presence and the potential for profitability, making it an attractive option for those looking to enter the franchise industry.

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Chick-fil-A Breakeven and Payback Period

Franchisees can anticipate a breakeven time of just 12 months, which indicates a relatively quick return on investment. Moreover, the investment payback period is around 24 months, allowing franchisees to recoup their initial costs within a reasonable timeframe. This efficiency in financial recovery is a significant factor for potential investors considering the Chick-fil-A franchise model.

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Chick-fil-A Operational Structure

Chick-fil-A has a unique operational structure, with 395 franchised units and no corporate-owned locations as of 2023. This model allows franchisees to operate independently while benefiting from the brand's established reputation and support. The franchise's focus on quality service and product consistency contributes to its success, making it an appealing choice for individuals passionate about food service and customer satisfaction.

Chick-fil-A Franchise Financial Requirements

Below, you’ll find an overview of the initial investment needed to launch the business, along with the ongoing fees required by the franchisor to maintain operations over time.

Net Worth Required icon The minimum total assets (minus liabilities) you must possess.

i Net Worth Required:

$150,000 - $1,000,000
Investment Payback icon The estimated period to recoup your total investment.

i Investment Payback:

24 Months
Franchise Fee icon The initial fee paid to join the franchise system.

i Franchise Fee:

$10,000
Royalty Fee icon Ongoing percentage of revenue paid to the franchisor.

i Royalty Fee:

10%
Marketing Fee icon Regular contribution toward the franchise’s advertising fund.

i Marketing Fee:

10%
Breakeven Time icon The estimated timeframe to recover your initial costs.

i Breakeven Time:

12 Months
Initial Investment icon The total amount required to launch the franchise.

i Initial Investment:

$585,500 - $3,337,000
Cash Required icon The minimum liquid capital you must have on hand.

i Cash Required:

$585,500 - $3,337,000
Average Revenue icon The typical yearly revenue generated per franchise location.

i Average Revenue:

$1,327,108
Median Revenue icon The middle value of yearly revenue among franchise locations.

i Median Revenue:

$1,110,784
Highest Revenue icon The largest reported annual revenue among franchisees.

i Highest Revenue:

$10,642,104
Lowest Revenue icon The smallest reported annual revenue among franchisees.

i Lowest Revenue:

$220,113
Industry icon A broad sector defining similar types of franchise businesses.

i Industry:

Restaurant Franchises
Category icon A more specific division within the broader industry.

i Category:

Quick-Service Restaurants
Leadership icon The key individuals guiding the franchise’s strategy and growth.

i Leadership:

Andrew T. Cathy
Corporate Address icon The official business address of the franchisor’s headquarters.

i Corporate Address:

5200 Buffington Road, Atlanta, Georgia 30349
Funding Year icon Available financing options to help start the franchise.

i Funding Year:

1964
Parent Company icon The main organization that owns the franchise brand.

i Parent Company:

Chick-fil-A, Inc.

Chick-fil-A Franchise Unit Growth Summary

A breakdown of corporate, franchised, and total units, with yearly net changes.

The overall number of operating franchise locations.

Total Units i

412
The number of locations owned by independent franchisees.

Franchised Units i

412
The number of locations owned and run by the franchisor.

Corporate Units i

0
Units 2021 2022 2023
Total Units 390 393 395
Net Change YoY 3 2
Franchised Units 390 393 395
Net Change YoY 3 2
Corporate Units 0 0 0
Net Change YoY 0 0
Investment About

Initial Investment

The initial investment for a Chick-fil-A franchise ranges from $585,500 to $3,337,000. This includes a franchise fee of $10,000, which is relatively low compared to many other franchises. The total cash required varies significantly based on location and other factors, making it essential for potential franchisees to conduct thorough financial planning.

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Royalty and Marketing Fees

Chick-fil-A charges a royalty fee of 10% on gross sales, along with a marketing fee of 10%. These fees are standard in the franchise industry and contribute to the brand's national marketing efforts, helping franchisees benefit from a strong brand presence and customer loyalty.

Metrics About

Financial Performance

On average, a Chick-fil-A unit generates annual revenue of approximately $1,327,108. The median annual revenue is around $1,110,784, with revenue ranging from as low as $220,113 to as high as $10,642,104. This wide range indicates varying performance levels based on location, management, and market conditions.

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Breakeven and Payback Period

Franchisees can expect to break even within 12 months of operation, which is relatively quick for the restaurant industry. The investment payback period is approximately 24 months, allowing franchise owners to recoup their initial investment in a reasonable timeframe.

Breakeven About

Franchise Growth

Chick-fil-A has shown consistent growth in the number of franchised units, increasing from 390 in 2021 to 395 in 2023. This steady growth reflects the brand's strong market presence and the ongoing interest from aspiring franchisees looking to join a successful and established franchise system.

Units About

Corporate Structure

Chick-fil-A operates as a privately held company with a unique franchise model. Unlike many franchises, it does not operate corporate-owned units, focusing solely on franchised locations. This structure allows for a more streamlined approach to franchisee support and brand consistency across all units.

Frequently Asked Questions

The initial investment for a Chick-fil-A franchise ranges from $585,500 to $3,337,000, which includes the franchise fee and other startup costs.