- Chick-fil-A pays for all startup costs — including real estate, restaurant construction, and equipment — and leases everything to its franchisees for an ongoing fee equal to 15% of sales plus 50% of pretax profit remaining.
- The company prohibits most of its franchisees from opening multiple restaurants, which can limit franchisees' potential profits.
- Chick-fil-A gets more than 20,000 inquiries from franchisee candidates every year. From those candidates, Chick-fil-A selects between 75 to 80 new franchisees annually.
It costs nearly nothing to open a Chick-fil-A — but there's a catch
Chick-fil-A is among the most successful fast-food chains in the US, and it's also one of the cheapest to open. Franchisees pay just $10,000 to open a new restaurant, and Chick-fil-A covers the cost of everything else. But there are ongoing fees that can eat into franchisees' profits.
Chick-fil-A is among the most successful fast-food chains in the US, and it's also one of the cheapest to open.
The company's sales grew by $1 billion to $9 billion in 2017, making it larger than Chipotle and KFC combined.
Chick-fil-A is now the eighth-largest fast-food chain in the US by sales, and it generates more revenue per restaurant than any other chain nationally, according to QSR magazine.
Despite its success, Chick-fil-A charges franchisees only $10,000 to open a new restaurant, and it doesn't require candidates to meet a threshold for net worth or liquid assets, the company told Business Insider.
That's cheaper than every major fast-food chain in the US.
Chick-fil-A, on the other hand, pays for all startup costs — including real estate, restaurant construction, and equipment.
In turn, the company leases everything to its franchisees for an
The company also puts a big emphasis on community service and encourages franchisees to be actively involved in the communities where they live and work.
"Oftentimes, several operators in a market will combine resources to market events through advertising and promotion," Hannah said. "Our daddy-daughter date nights are an example of this."
The application process
Chick-fil-A gets more than 20,000 inquiries from franchisee candidates every year. From those candidates, Chick-fil-A selects between 75 to 80 new franchisees annually, Hannah said.
To apply, candidates have to submit a form through the company's website expressing their interest.
Chick-fil-A will then contact the candidates for interviews. The company may also interview candidates' friends, family members, and business partners.
Once they are selected and hired, franchisees have to undergo a multi-week training program before they can open and operate their own restaurant.