Explore the financial prospects of owning a Chick-fil-A franchise, from the owner’s percentage earnings to first-year profits, startup costs, failure rates and royalty fees.
What percentage do Chick-fil-A owners make?
In return for 60-hour work-weeks, an operator might take home 5-7% of revenue (around $150-$250k per year). But from an investment perspective, certain things about being a Chick-fil-A franchisee aren’t so enticing: They don’t own the restaurant or equipment (everything belongs to corporate).
How much does a Chick-fil-A owner make the first year?
With a Chick Fil A franchise owner’s salary range typically falling between $150,000 and $250,000 annually, the investment in this popular fast-food chain can prove to be highly profitable.
What are the benefits of owning a Chick-fil-A franchise?
Chick-fil-A pros Their initial franchise fee is significantly lower than their competitors. Franchisor covers the majority of startup costs, including real estate, construction, and equipment. Franchisor rents you all necessary equipment. No prior restaurant experience necessary.
Why is it only cost $10 K to own a Chick-fil-A franchise?
Startup costs for Chick-fil-A franchises are relatively low. That’s because, unlike other franchises, Chick-fil-A actually purchases the real estate and all of the equipment required to open the business, and then leases them to you via monthly rent payments.
What is the failure rate of a Chick-fil-A franchise?
Very low. According to industry estimates, the failure rate for Chick-fil-A franchises is less than 5%, and over 96% of Chick-fil-A restaurants have been in business for more than 50 years.
What is Chick-fil-A franchise royalty fee?
However, Chick-fil-A charges a 15% royalty and takes 50% of all profits for franchisees, by far the steepest structure of any quick-service brand.