December 19, 2022

This $10,000 Chick-fil-A Franchise Is REALLY Making Millions?



In this video, we will know what is the real cost of Chick-Fil-A Franchise.
If you want to own and operate this Franchise, this video is for you!

Chick-fil-A’s principal business is the development of a system of retail quick-service restaurants specializing in a boneless breast of chicken sandwich. Most of these restaurants are operated by franchised operators who are independent contractors.

You can learn more here: https://www.vettedbiz.com/chick-fil-a-franchise-cost/

00:00 Introduction
00:41 Bussiness model
01:08 Franchise fee
01:40 Split Earnings
02:20 Average sales
02:47 Franchisee location growth
03:21 Conclusion
04:14 Subscribe!

#ChickFilA #VettedBiz #FranchiseCost

Chick-fil-A’s principal business is the development of a system of retail quick-service restaurants specializing in a boneless breast of chicken sandwich. Most of these restaurants are operated by franchised operators who are independent contractors.

Chick-Fil-A is a Georgia corporation formed on March 23, 1964 and uses the trade name Chick-fil-A. S. Truett Cathy, the Founder of Chick-fil-A, opened his first restaurant, the Dwarf Grill, in Hapeville, Georgia, in April 1946. Dan Cathy now is the Chief Executive Officer since November 2013 and was the Assistant Secretary of Chick-fil-A since June 2001.

This article provides insight about Chick-fil-A’s franchised units. There are currently 2,493 domestic Chick-fil-A restaurants, of these 2,085 are franchised operated. While the remainder is 382 licensed units and 26 operated by the company.

Chick-fil-A charges $10,000 for the initial fee and $5,000 for any additional franchise unit. Of the initial fee of $10,000, $5,000 is considered working capital and can be received back at the end of the term under the franchisor’s discretion.

The total investment necessary to begin operation of a franchised Chick-fil-A Restaurant business is from $582,360 to $2,025,400.

Additional Cost Breakdown:

Initial Franchise Fee: $10,000
Opening Inventory: $17,830 – $57,860
First Month’s Rent of Equipment: $750 – $5,000
First Month’s Lease / Sublease of Premises: $1,900 – $67,200
First Month’s Insurance Expense: $255 – $8,950
Additional Funds: $552,125 – $1,876,390
Disclaimer: These costs, besides the initial franchise fee, are paid by being deducted from Gross receipts after restaurant opens. The costs have variability depending on location and existing status of retail space. Chick-fil-A’s estimate is based on its own experience in establishing similar operations.

Since Chick-Fil-A corporation pays for the land, construction and equipment of the restaurant, it rents or subleases the property to the franchisee for 15% sales plus 50% of pretax profit remaining (Paid Monthly).

Chick-fil-A leases all software which is $9,500 – $20,000 per year for high-speed internet access.

You can learn more here: https://www.vettedbiz.com/chick-fil-a-franchise-cost/

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