Is It Possible To Become a Chipotle Franchise Owner?

With over 3,300 locations, you may be surprised to hear that Chipotle is not a franchise — at least not in most of the world. The brand has only signed one franchise agreement, which is in the Middle East. 

In July of 2023, the brand announced its first-ever development agreement to bring restaurants to the Middle East in partnership with franchise company Alshaya Group. Alshaya Group plans to open Chipotle locations in Dubai and Kuwait in 2024. 

This was a big move for Chipotle, which currently owns and operates all of its restaurants. So, why has the brand been so reluctant to franchise?

Why Chipotle Doesn’t Franchise

In 2014, Business Insider spoke to Chipotle spokesperson Chris Arnold, who said that the reason the brand does not franchise is “because [it] doesn’t need to.” 

"Companies tend to franchise because they need money to grow and/or operators to run their business,” said Arnold. “We have plenty of money for growth (more than $1 billion in cash on our books) and don’t have trouble attracting great people to run our restaurants." 

Like Starbucks, Chipotle also does not want to relinquish control over to restaurant operators. 

"When you franchise, you give up control over how restaurants are run and that can compromise the experience," continued Arnold. "What’s more, our business model is so strong, we would rather not sell off our revenues to franchisees in exchange for only a small percentage of that."

The company also noted that it wants to maintain tight control over its food sourcing, without facing any pressure from franchisees. 

Could Franchising Be on the Horizon?

When Chipotle announced its deal with Alshaya Group, led by chief business development officer Nate Lawton, the company said it is open to exploring outside partnerships. 

However, the brand plans to continue owning and operating its own restaurants in the United States, Canada and Western Europe, according to a company spokesperson. 

“We are fortunate to have very strong returns and a balance sheet with zero debt, which gives us the ability to fund our own growth,” the company said in a statement. “In some markets, it is apparent that we’re best suited to leverage a partner with local expertise and the Middle East is one of them.”

Chipotle Alternatives

Although Chipotle isn’t currently offering franchises, there are franchise brands that offer a similar concept. Here are three: 

Moe’s

• Investment Range: $659,075–$1,839,390
• Unit Count: 600+

QDOBA

• Investment Range: $489,200–$1,178,000
• Unit Count: 600+

Pollo Campero*

• Investment Range: $1,287,250–$2,491,500
• Unit Count: 360

As Chipotle pushes to reach 7,000 locations across North America, maybe there’s hope the brand will begin franchising at some point in the distant future.