Chick-fil-A, founded by S. Truett Cathy, began as The Dwarf Grill in 1946 in Atlanta, Georgia. In 1967, Cathy opened the first Chick-fil-A restaurant in Atlanta’s Greenbriar Shopping Center.
Now, Chick-fil-A is one of the largest quick-service chicken chains in the U.S., with over 2,000 locations across 48 states, Washington D.C., Puerto Rico, and Canada. The headquarters remains in Atlanta.
Franchising started in 1986, with Chick-fil-A using a unique single-unit model. This approach requires Operators to be fully committed to their restaurant, ensuring deep community involvement and responsibility.
The brand is famous for its signature chicken sandwich, served on a buttered bun with dill pickle chips. Chick-fil-A also offers waffle fries, salads, and dipping sauces. It stands out for its quality ingredients, top-tier customer service, and strong community ties.
Key Franchise Stats
Chick-Fil-ANumber of units: 2,339 franchises
Initial investment: $518,000 -$2,803,000
Average revenue (AUV): $8,072,000
Initial Investment
It costs on average between $518,000 – $2,803,000 to start a Chick-Fil-A franchised restaurant.
This includes costs for construction, equipment, inventory, and initial operating expenses. The exact amount depends on various factors, including the type of restaurant you choose, the location and whether the franchisee chooses to lease or purchase the property.
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $10,000 |
| Opening Inventory | $13,500 to $140,000 |
| First Month’s Rental of Equipment | $750 to $5,000 |
| First Month’s Lease/Sublease of Premises | $2,550 to $85,500 |
| First Month’s Insurance Expense | $240 to $12,000 |
| Additional Funds | $491,345 to $2,550,935 |
| Total Estimate of Initial Investment | $518,385 to $2,803,435 |
Average Revenue (AUV)
A Chick-fil-A franchised restaurant makes on average $8,072,000 in revenue (AUV) per year.
Here is the extract from the Franchise Disclosure Document:
This compares to $1,662,000 yearly revenue for similar restaurant chicken franchises. Below are 10 Chick-Fil-A competitors as a comparison:
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Chick-Fil-A Franchise Disclosure Document
Frequently Asked Questions
How many Chick-fil-A locations are there?
As of the latest data, Chick-fil-A operates over 2,900 locations across the United States and internationally. This includes primarily franchise-operated restaurants, with only a few being company-owned.
Chick-fil-A’s extensive network of restaurants, coupled with its strong brand recognition and loyal customer base, makes it one of the most successful fast-food chains in the country.
What is the total investment required to open a Chick-fil-A franchise?
The total investment required to open a Chick-fil-A franchise ranges from $518,000 – $2,803,000 for a franchised Chick-fil-A Restaurant business.
What are the ongoing fees for a Chick-fil-A franchise?
Chick-fil-A franchisees (referred to as operators) are required to pay a 15% royalty fee on gross sales. Additionally, there is an ongoing service fee of 50% of the restaurant’s pre-tax profit, which covers various operational costs, including marketing and advertising efforts.
However, there is some information suggesting that operators may contribute around 3.25% of gross sales toward local and national marketing efforts, although the exact structure can vary.
What are the financial requirements to become a Chick-fil-A franchisee?
To become a Chick-fil-A franchisee, the financial requirements are quite different from most other franchises:
- Net worth: Chick-fil-A does not have a formal net worth requirement for its franchisees.
- Liquid Capital: There is no specific liquid capital requirement either.
Instead of emphasizing personal financial metrics like net worth and liquid capital, Chick-fil-A focuses more on selecting operators who align with their values and leadership qualities.
How much can a Chick-fil-A franchise owner expect to earn?
The average gross sales for a Chick-fil-A franchise are approximately $8.1 million per location. Assuming a 15% operating profit margin, $8.1 million yearly revenue can result in $1,215,000 EBITDA annually.
Whilst EBITDA does not necessarily represent the owner’s pay, it can serve as a proxy for how much the owner can pay herself/himself as dividends.
Who owns Chick-fil-A?
Chick-fil-A is a privately owned family business. It was founded by S. Truett Cathy in 1967, and it remains under the ownership and control of the Cathy family. Currently, Dan Cathy, the son of Truett Cathy, serves as the Chairman of the company, and Andrew Cathy, Dan Cathy’s son, took over as the CEO in 2021.
The family has maintained full ownership of Chick-fil-A, which allows them to uphold their business values and operating principles, including their famous decision to close all Chick-fil-A locations on Sundays.
Disclaimer
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