Quick Summary
Raising Cane’s Chicken Fingers is a fast-food chain founded in Baton Rouge, Louisiana, in 1996.
From its humble beginnings – Todd Graves received a C- from his professor for the business plan – Raising Cane’s has expanded to more than 500 U.S. cities and began international expansion in 2015.
Despite its vision for global expansion, the franchise isn’t currently open for franchising, instead focusing on the development of corporate-owned restaurants.
Raising Cane’s is renowned for its quality chicken finger meals and community engagement. However, potential investors should note the limited menu offering, with chicken fingers as its only entree offering.
Key Takeaways
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Raising Cane’s offers franchise opportunities but is currently focused on expanding company-owned locations and supporting existing franchisees.
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With 749 locations in 42 U.S. states and five countries, Raising Cane’s aims to double its presence in the global fast-food market.
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Prospective franchisees must demonstrate business management experience and must meet financial requirements, including a net worth of $1.5 million.
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Initial franchise fees are $45,000, with total investment ranging from $768,100 to $1,937,500, depending on various factors.
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Raising Cane’s boasts strong financial performance, with an average unit volume of $4.6 million, attracting potential investors.
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Is Raising Cane’s a Franchise?
Yes, Wingstop operates primarily as a franchise, with most of its locations owned by franchisees. This model has facilitated Wingstop’s expansion, allowing it to maintain quality across its network.
Franchisees are subject to an initial fee and ongoing royalties and must adhere to Wingstop’s supply chain requirements, ensuring consistency and quality in every meal served.
How Many Raising Cane’s Are There?
Raising Cane’s has quickly become a leading brand in the fast-food industry, accompanied by rapid expansion throughout the United States and beyond.
As of March 2024, Raising Cane’s boasts 749 locations across 42 U.S. states and 5 other nations (all of which, at this time, are located in the middle east).
With aspirations to double its reach, Raising Cane’s seeks to earn a spot among the top 10 U.S. restaurant brands.
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What Training Is Required To Open A Raising Cane’s Franchise?
Upon application, the Raising Cane’s franchise team reviews submissions and provides contact details for franchise owners.
Business management background, preferably in the hospitality or restaurant industry, is required.
Assuming you are able to clear those first two hurdles – and franchise opportunities have once again been made available – Raising Cane’s training system, anchored by the Restaurant Support Office (RSO) will guide you through site selection, construction, and marketing.
Mandatory training programs cover operations, management, and customer service.
Emphasis on core values ensures quality and customer satisfaction.
As a franchise owner, you will also receive ongoing support from the RSO to uphold brand standards and succeed in the industry.
Franchise terms typically last 20 years, with opportunities for renewal. Dedication and hard work are expected from franchisees to maintain the brand’s standards and achieve success.
How Much Does It Cost To Open A Raising Cane’s?
In 2021, Raising Cane’s sets the initial franchise fee at $45,000. However, beyond the initial investment, total investment for opening a franchise ranges from $768,100 to $1,937,500.
These costs vary based on factors like restaurant size, location, equipment, supplies, and training expenses. A breakdown of potential costs includes:
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Franchise Fee: $45,000
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Real Estate and Construction: $571,300 to $1,285,800
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Equipment and Supplies: $206,700 to $336,200
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Inventory: $11,500 to $22,000
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Training and Opening Expenses: $18,500 to $44,000
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Additional Funds: $50,000 to $104,300.
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Franchise owners must pay ongoing royalty fees of 5% and a marketing fee of 4%.
Additionally, franchisees must have a minimum net worth of $1.5 million and $750,000 in liquid assets.
How much Does A Raising Cane’s Franchise Make in a Year?
Raising Cane’s is renowned for its strong financial performance, with an average unit volume (AUV) of $4.6 million and total revenue in 2023 of $3.3 billion.
Raising Cane’s current AUV represents a 74% increase for the company over the past five years.
Motivated franchisees may consider opening more than a single Raising Cane’s location as ownership of multiple franchises can enhance earning potential, attracting private equity interest.
Pros and Cons of Raising Cane’s Franchise Ownership
Exploring the prospect of investing in a Raising Cane’s franchise requires a balanced understanding of its benefits and drawbacks.
This section dives into the key advantages and potential challenges of becoming a Raising Cane’s franchisee. Let’s take a look at what you should keep in mind as you explore the opportunity of opening your own franchise.
Pros
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The Raising Cane’s brand is strong and boasts a high Average Unit Volume (AUV) of $4.6 million, ranking among top fast-food chains.
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Raising Cane’s demonstrates an aggressive posture toward growth, as evidenced by its expansion onto the international market beginning in 2015.
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The company offers franchisees extensive training and support through its Restaurant Support Office (RSO) and various training programs.
Cons
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Despite advantages, franchisees face drawbacks such as limited menu appeal (chicken fingers as only entree) and higher-than-average startup costs.
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Intense competition from established chains like Chick-fil-A and KFC poses challenges for Raising Cane’s franchisees.
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Despite it’s a robust growth story, Raising Cane’s is not without risks, evidenced by the fact that it has borrowed $500 million to pay debts.
Investing in a Raising Cane’s franchise presents an opportunity for lucrative returns due to its robust financial performance and expansion plans.
However, potential franchisees should consider challenges like limited menu appeal, high startup costs, and aggressive competition.
If (or when) Raising Cane’s once agains opens the opportunity for new franchise owners, you must carefully assess these factors to determine if a Raising Cane’s restaurant franchise also aligns with your goals and resources.