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This $10,000 Chick-fil-A Franchise is Making Millions and You Can Too
Being awarded a franchise with this brand is like winning the lottery — chances are slim, but the reward is worth it.
Chick-fil-A is one of the most popular choices for franchising; each year, the brand receives more than 60,000 inquiries from entrepreneurs who are interested in owning a location of the beloved chicken sandwich concept. However, only a lucky few (less than 1% of inquiries) are actually accepted and get to sign an agreement with the company.
Why is this fast food brand such a coveted option in the franchise world? The reason is that the investment cost is very low — only $10,000 — and the opportunity for annual profits is in the six-figure range.
Invest Only $10,000 to Open
Most franchises, especially those in the food industry and with a retail aspect, cost in the high hundred thousand dollar range and can go up to multiple millions. That’s because, on top of an initial franchise fee, companies require owners to pay for all the buildout, the equipment and any costs associated with the logistics of opening.
However, Chick-fil-A does things differently. The brand charges a nominal franchise fee of $10,000, and that’s the extent of the initial investment. The company covers paying for all the other factors, up to $2 million – a very rare model in franchising.
Not Technically an Owner
The flipside to having the franchisor cover all startup costs is that franchisees are considered operators rather than owners, Business Insider reports. Because they didn’t pay for the building, equipment or inventory, they do not “own” the franchise and, therefore, can’t sell it. They operate as a full-time partner of Chick-fil-A, running the location for the brand, and therefore, part of the profits are owed to the franchisor as rent.
Split Profits with the Brand
The other “catch” to becoming a Chick-fil-A operator with a mere $10,000 investment means that profits must be split 50% with the brand. While that is a hefty chunk of change to part with, the potential for profit is still large, especially when taking into consideration the money that is saved with such a low investment cost.
Patrick Findaro, the co-founder of VettedBiz, made a video exploring franchise ownership with Chick-fil-A. His research found that the company reported $600 million in income for 2019 and that the average location brings in about $6 million per year. With a profit margin of 10% and the operator pocketing half of that, there is still the possibility of making $300,000 per year.
“For just $10,000, you can open up Chick-fil-A and divide the profits with corporate,” Finado said. “You have a business that has very strong financials, as well as very strong ethics. To me, it sounds like a good business partner to have.”
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