Join Our Franchise Buyers Beta Course for
Aspiring Franchise Owners

Quick Summary

With over 3,000 of outlets across North America, the chain remains under the stewardship of the Cathy family and is notable for its pronounced religious ethos and “original” chicken sandwich.

Chick-fil-A distinguishes itself from other franchises by retaining tight control over its operations. 

All property, including equipment and store renovations, is owned by Chick-fil-A, with franchisees handling the operational expenses.

This chain stands out in the fast-food industry for its remarkable sales achievements and relatively modest $10,000 franchise fee. In 2022, Chick-fil-A saw a significant 12.8% sales increase, totaling $18.8 billion.

Key Takeaways

• Chick-fil-A franchises offer unique management rights without traditional ownership, with corporate control over location and assets.
• Chick-fil-A selectively expands with over 3,000 U.S. locations, focusing on strategic market growth and corporate-directed site selection.
• Operators receive comprehensive training, ensuring consistency in service and quality, reflecting Chick-fil-A’s dedication to customer experience.
• Initial franchise costs are low at $10,000, with Chick-fil-A covering major expenses, but operators don’t own physical assets.
• Operators earn 5% to 7% of gross sales, potentially $200,000 to $240,000 annually, without equity in business or real estate.

Here are 5 Low Cost Franchises that make
$1,000,000 (Backed by Data)

Most People Waste Countless Hours Of Time Stuck In Confusion, Scoping The Internet, Trying To Find Winning Franchises.

This Will Save You So Much Time.

We’ve Done The Heavy Lifting For You And Narrowed It Down To 5 Low-Cost Franchises That Make $1,000,000 So You Can Save Yourself So Much time.

Yes, Chick-fil-A operates as a franchise, but it’s unique in how it structures its franchisee relationships. 

Unlike typical franchises where the franchise owner runs their restaurant, Chick-fil-A refers to them as “operators.” These operators oversee the restaurant’s day-to-day operations, and opening a Chick-fil-A franchise is not considered a passive investment like other franchise opportunities.

Still, you don’t own the business in the traditional sense. You essentially own the rights to operate a location and share in the store’s profits. 

Unlike other restaurant franchise opportunities, Chick-fil-A maintains considerable control over its franchises. The company decides the store location, purchases and refurbishes the premises, installs all necessary equipment, and retains ownership of the physical assets. 

As an operator, your role involves managing the store and paying monthly fees to Chick-fil-A, including rent and other operational costs.

Chick-fil-A, renowned for its strategic and selective expansion approach, opens only a limited number of new restaurants annually. There are currently more than 3,000 Chick-fil-A restaurants in the U.S.

Chick-fil-A has a strong presence in the Southern U.S., with 256 restaurants in Texas, 132 restaurants in Florida, and 104 restaurants in Georgia. 

Despite receiving numerous customer suggestions for potential locations, the decision for new restaurant sites lies with the real estate team at Chick-fil-A, Inc. 

This team meticulously chooses locations per the company’s expansion objectives, focusing on specific markets and key business considerations.

Chick-fil-A, known for its exceptional customer service and consistent quality across locations, attributes much of its success to its comprehensive training programs. 

These programs ensure that every franchise operator can replicate the renowned Chick-fil-A experience—delivering high-quality food and outstanding service.

For potential franchise operators, it’s essential to understand that Chick-fil-A’s training is intensive and thorough; often, a multi-week training program includes online and in-person training. This commitment requires both time and financial resources. However, this investment in training is crucial for developing the skills and business acumen necessary to run a Chick-fil-A restaurant successfully.

Becoming a Chick-fil-A operator is akin to taking on a full-time role. The dedication required in time, energy, and capital is significant. But, it’s an investment that pays off by equipping franchisees with invaluable business knowledge and skills, not just for operating a Chick-fil-A restaurant but also for any future entrepreneurial ventures.

Starting a Chick-fil-A franchise comes with comparatively low upfront franchise costs, primarily because Chick-fil-A shoulders the major expenses like buying real estate and equipment, which are then leased to you. Here’s a quick look at the startup costs you’ll need to cover:

• The initial franchise fee is just $10,000.
• Opening inventory costs range from $18,028 to $94,560.
• Your first month’s equipment rental will be between $750 and $5,000.
• Rent for the first month can vary widely, from $1,475 to $85,800.
• The first month’s insurance fees are estimated between $282 and $11,165.
• You’ll also need additional funds ranging from $264,877 to $2,225,083 for various opening costs.

This model makes it easier for more people to start a Chick-fil-A franchise, aligning with the company’s aim to attract a broad range of franchisees. However, it’s important to note that you won’t own the business’s physical assets, just the rights to operate the franchise.

Chick-fil-A’s fee structure is divided into initial investments, ongoing operational costs, and miscellaneous expenses.

While the entry barrier is lower, Chick-fil-A recoups costs through ongoing fees, including a 15% cut of your sales and regular equipment leasing fees. Remember, since you don’t own the real estate, you won’t build equity in the property, and you can’t sell or bequeath the restaurant.

As mentioned above, the initial franchise fee for Chick-fil-A is a $10,000 upfront investment, along with the other initial costs associated with opening a new restaurant. 

However, as you consider becoming an operator at Chick-fil-A, you should also be aware that there are ongoing costs associated with the opportunity, such as: 

• A 15% service fee on your monthly sales.
• Equipment rental charges each month, which can range from $750 to $5,000.
• Advertising expenses could range from 0% to 3.25% of your monthly sales.
• Rent varies significantly from $1,475 to as much as $85,800 per month. This is based on the location where you want to operate a restaurant, and you will need to work with the Chick-fil-A team to finalize the best options for you. 
• Monthly insurance costs, which might be between $282 and $11,165.
• Yearly expenses for hardware/software support and high-speed internet range from $9,500 to $20,000.
• Monthly fees for cash-handling system services which can range from $85 to $450.

Chick-fil-A, like many fast food companies, doesn’t readily publish data about the earnings potential of their restaurant operators. 

However, it’s generally understood that operators receive about 5% to 7% of gross sales. To put this in perspective:

• At a 5% share, an operator of a store making $1 million annually would earn $50,000; this scales up to $200,000 for a store with $4 million in sales. 
• This means an average Chick-fil-A operator could earn around $200,000 to $240,000 yearly. While this is a substantial income, it’s relatively low for franchise ownership since operators only receive a fraction of the gross sales.
• Please note that this salary will require you to work in the restaurant full-time, and you will not earn equity in the business or the real estate since you own neither. 
• It’s crucial to note that being a Chick-fil-A operator requires full-time commitment. The franchise isn’t suitable for managing multiple units or being passive investors. 
• Unlike typical franchises where you can sell your business or pass it on, Chick-fil-A operators don’t own any equity in their business. In fact, Chick-fil-A’s terminology refers to franchisees as “operators,” not owners. 
• This distinction has even led to debates in some states about whether operators should be classified as employees, entitled to employee benefits, rather than franchise owners.
• Contact our team today for comprehensive support and insights if you’re ready to expedite your journey with a Chick-fil-A franchise and want expert guidance to optimize your initial investment.

Look, Chick Fil A is like the Lamborghini of fast food. They have the highest average unit sales for any similar business, they have a cult-like following, and are known for their incredible service.

The reality is you don’t actually own anything as a Chick Fil A Operator. We chatted with a guy who was an Operator with Chick Fil A and wanted to diversify into a new business, because if something happened to him the “ownership” would NOT pass onto his wife.

You are essentially buying yourself a job here. Granted one that could create a high multiple six figure income, but that’s about all you’ll have to show for it. 

We love the food, we love the service, and the way they’ve innovated with their technology…but as far as owning one to build your empire? It’s probably not the best option.

Subscribe to the Franchise Empire Newsletter for the latest Franchise news & updates