How Much Does a Chick-fil-A Franchise Owner Make?

If you can make it through the brand’s competitive selection process, which is said to be harder than getting into Harvard, you’re in for a pretty successful venture.

By Victoria CampisiStaff Writer

12:12PM • 01/15/24

Chick-fil-A has a pretty unusual franchise model, but it appears to be paying off. Despite being closed on Sundays, the franchise has earned more per store than any other fast-food chain.

In addition to being famous for its “my pleasure” culture and delicious chicken sandwiches, the brand is also famous in the franchise world for charging its operators just a $10,000 franchise fee. But a small franchise fee certainly isn’t equating to small profits.

On average, a Chick-Fil-A franchise makes $8.1 million in sales per year, according to data from finance platform SharpSheets. Of course, this number will vary by location. For example, if the franchise is located in a mall, the data found that the number dropped to $2.7 million.

When looking at the average annual sales of $8.6 million for non-mall units, the average Chick-Fil-A makes $1.3 million in earnings before interest, taxes, depreciation and amortization (EBITDA) — a 15% margin.

This operating profit only includes cost of goods sold, labor, rent, and royalty and marketing fees paid to the franchisor. To reach this number, SharpSheets used the royalty fees and the rent expense provided in the brand’s Franchise Disclosure Document.

It’s clear that the chicken franchise pays pretty well, but getting into the system is another story.

The Highly Competitive Application Process

Chick-fil-A employs a highly competitive franchisee selection process, with only 1% of the approximately 60K annual applicants being approved. The company prioritizes individuals who align with its values, contribute positively to the community, demonstrate financial stewardship and reside in the targeted market.

Full-time availability and active involvement in day-to-day operations are also essential requirements for potential franchisees. This rigorous selection process reflects Chick-fil-A's commitment to maintaining fidelity to its core values and upholding a hands-on approach to business ownership.

What It Costs To Open a Chick-fil-A

Opening a Chick-fil-A franchise costs between $186,495 and $2,7 million. However, franchisees are only responsible for that $10,000 franchise fee. This makes Chick-fil-A one of the least expensive major fast-food chains to buy into. In comparison, the franchise fee alone is $45,000 per McDonald’s location. Chick-fil-A has no requirements for minimum net worth or liquid assets, while McDonald’s requires a $500,000 net worth.

Notably, because Chick-fil-A covers hundreds of thousands of dollars to get the restaurant up and running, it charges a much steeper royalty than other fast-food chains at 15%. It also takes 50% of all franchisee profits.

Despite the hefty fees, it’s clear that if you’re one of the lucky few to get selected for a Chick-fil-A franchise, there’s a path to success ahead of you.