How Much Does It Cost to Buy a Chick-fil-A Franchise?

Want to open a Chick-fil-A? If you make it through the highly selective franchise process, all it takes is a $10K franchise fee. 

In total, opening a Chick-fil-A franchise costs between $186,495 and $2,707,337. But unlike most other franchisors, Chick-fil-A covers all opening expenses, meaning franchisees are only responsible for that $10K. That makes Chick-fil-A one of the least expensive major fast-food chains to buy into by far. To put it into perspective, the franchise fee alone is $45,000 for McDonald’s, and $50,000 for both Burger King and Wendy’s. 

With that said, here are a few other factors to note. 

Costs to Consider

Chick-fil-A has no requirements for minimum net worth or liquid assets. In comparison, McDonald’s requires a $500,000 net worth. 

However, Chick-fil-A charges a 15% royalty and takes 50% of all profits for franchisees, a much steeper structure than other quick-service brands. Wendy’s, for example, charges franchisees just a 4%-6% royalty, while McDonald’s charges 5%. 

Additionally, because Chick-fil-A covers all expenses involved in building and opening a restaurant, the franchisor also owns the real estate, building, equipment and virtually everything else in the restaurant. The franchisee simply operates the business. 

And while the franchising opportunity doesn’t cost much, Chick-fil-A “requires a holistic commitment to own and operate the business in a hands-on manner” from owners. This means that the franchise wants operators who are ready to be hands-on and involved in the day-to-day activities of the business. This doesn’t make it an ideal opportunity for franchisees with other brands in their portfolio. 

The Profits

Chick-fil-A’s unusual business model appears to be paying off. Despite being closed on Sundays, the franchise has earned more per store than any other fast food chain. In 2017, for example, the average unit with the brand made $4,090,900 compared to McDonald’s, for example, with the average unit making $2,670,320. 

For reference, in the same year, the average Starbucks unit made $945,270 and the average Subway unit made $416,860. Even if you add McDonald’s average earnings per unit with those of Starbucks and Subway in 2017, it falls short of Chick-fil-A’s average per unit at $4,032,450.

It is notoriously difficult to buy a Chick-fil-A, leaving many prospective franchise buyers to invest in other brands in the segment. So, if Chick-fil-A isn’t for you, here are three other restaurant franchise brands to look into: 

• MOOYAH Burgers, Fries & Shakes* | Investment Range: $495,918–$1,168,251
• Southern Classic Chicken | Investment Range: $777,500–$1,235,500
• Layne’s Chicken Fingers* | Investment Range: $737,000–$1,217,000