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Church's Texas Chicken Franchise ProfileRestaurant Franchises > Quick-Service Restaurants |
What is the Initial Investment for a Church's Texas Chicken Franchise?
To open a Church's Texas Chicken franchise, you will need to prepare for a significant initial investment, which ranges from $648,866 to $1,896,300. This includes a franchise fee of $15,000. Additionally, you should have cash reserves between $50,000 and $150,000 and a net worth of $500,000 to $1,000,000. Understanding these financial requirements is crucial for assessing your readiness to invest in this franchise opportunity.
What Are the Ongoing Fees Associated with a Church's Texas Chicken Franchise?
As a franchisee, you will be responsible for ongoing fees, which include a royalty fee of 5% on gross sales and a marketing fee of 5%. These fees are essential for maintaining brand standards and promoting the Church's Texas Chicken name in the marketplace. It's important to factor these costs into your business plan to ensure you can sustain profitability over time.
What Kind of Revenue Can You Expect from a Church's Texas Chicken Franchise?
The average annual revenue for a Church's Texas Chicken unit is approximately $1,007,914, with a median revenue of $951,694. However, revenues can vary significantly, with the lowest recorded at $284,415 and the highest reaching $2,763,563. This variability highlights the importance of location, management, and market demand in determining your franchise's financial success.
How Long Does It Take to Break Even with a Church's Texas Chicken Franchise?
Franchisees can expect to reach the breakeven point within about 18 months of operation. The investment payback period is relatively quick, estimated at around 16 months. This timeline can be influenced by factors such as initial sales performance, operational efficiency, and market conditions, making it essential to have a robust business strategy in place.
Church's Texas Chicken 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.
The minimum total assets (minus liabilities) you must possess.
Net Worth Required:
The estimated period to recoup your total investment.
Investment Payback:
The initial fee paid to join the franchise system.
Franchise Fee:
Ongoing percentage of revenue paid to the franchisor.
Royalty Fee:
Regular contribution toward the franchise’s advertising fund.
Marketing Fee:
The estimated timeframe to recover your initial costs.
Breakeven Time:
The total amount required to launch the franchise.
Initial Investment:
The minimum liquid capital you must have on hand.
Cash Required:
The typical yearly revenue generated per franchise location.
Average Revenue:
The middle value of yearly revenue among franchise locations.
Median Revenue:
The largest reported annual revenue among franchisees.
Highest Revenue:
The smallest reported annual revenue among franchisees.
Lowest Revenue:
A broad sector defining similar types of franchise businesses.
Industry:
A more specific division within the broader industry.
Category:
The key individuals guiding the franchise’s strategy and growth.
Leadership:
The official business address of the franchisor’s headquarters.
Corporate Address:
Available financing options to help start the franchise.
Funding Year:
The main organization that owns the franchise brand.
Parent Company:
Church's Texas Chicken Franchise Unit Growth Summary
A breakdown of corporate, franchised, and total units, with yearly net changes.
Total Units
Franchised Units
Corporate Units
| Units | 2021 | 2022 | 2023 |
|---|---|---|---|
| Total Units | 1000 | 924 | 901 |
| Net Change YoY | -76 | -23 | |
| Franchised Units | 839 | 766 | 745 |
| Net Change YoY | -73 | -21 | |
| Corporate Units | 161 | 158 | 156 |
| Net Change YoY | -3 | -2 |
Investment Overview
The Church's Texas Chicken franchise requires a significant initial investment, ranging from $648,866 to $1,896,300. The initial franchise fee is set at $15,000, with ongoing royalty and marketing fees both at 5% of gross sales. Potential franchisees should have a cash reserve of $50,000 to $150,000 and a net worth between $500,000 and $1,000,000 to qualify for ownership.
Financial Performance
Franchisees can expect an average annual revenue of approximately $1,007,914 per unit, with a median revenue of $951,694. The revenue can vary significantly, with the lowest reported at $284,415 and the highest at $2,763,563. The breakeven period is estimated at 18 months, while investment payback is projected at 16 months, indicating a potentially lucrative opportunity for dedicated operators.
Operating Costs
The average operating expenses for a Church's Texas Chicken franchise total around $172,927 annually. Key expenses include payroll and benefits at $40,009, and other operating costs at $37,204. General administrative expenses add another $22,378, while depreciation and amortization account for $18,600. These figures highlight the importance of effective cost management to maintain profitability.
Franchise Growth
The number of franchised units has seen a decline from 839 in 2021 to 745 in 2023. This trend reflects broader industry challenges and competitive pressures. Despite the decrease, Church's Texas Chicken maintains a robust presence, with a total of 901 units in 2023, combining both franchised and corporate locations.
Support and Training
Franchisees benefit from comprehensive training and ongoing support from Church's Texas Chicken. The franchisor provides initial training programs that cover operations, marketing, and customer service, ensuring that new owners are well-equipped to manage their business effectively. Continuous support helps franchisees adapt to market changes and operational challenges.
Brand Legacy
Church's Texas Chicken has a rich history, rooted in delivering high-quality fried chicken with a unique flavor profile. Founded in 1952, the brand has grown to become a staple in the fast-food industry, known for its commitment to quality and customer satisfaction. With a strong brand identity and loyal customer base, Church's Texas Chicken continues to expand its reach while staying true to its culinary heritage.
Frequently Asked Questions
The initial investment for a Church's Texas Chicken franchise ranges from $648,866 to $1,896,300, which includes the franchise fee, equipment, and other startup costs.