how much does it cost to franchise a chick fil a

how much does it cost to franchise a chick fil a

7 hours ago 5
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Opening a Chick-fil-A franchise requires a relatively low initial franchise fee of $10,000, which is much lower than most other major fast-food brands

. However, Chick-fil-A operates a unique franchise model where the company covers the costs of setting up the restaurant, including construction, equipment, and initial inventory, and retains ownership of the restaurant and equipment

. The total initial investment to open a Chick-fil-A franchise typically ranges from approximately $444,000 to $2.34 million. This includes opening inventory, equipment rental, lease or sublease of premises, insurance, and additional funds needed for startup expenses

. Chick-fil-A franchisees pay a royalty fee of 15% of sales and share 50% of the profits with the company

. Key cost details include:

  • Initial franchise fee: $10,000
  • Opening inventory: $15,000 to $121,000+
  • First month’s rental of equipment: $750 to $5,000
  • First month’s lease/sublease of premises: $2,600 to $95,000+
  • Additional funds (working capital, etc.): $415,000 to over $2 million
  • Total estimated initial investment: $444,000 to $2,338,786

Chick-fil-A’s model focuses on selecting operators who actively manage the restaurant rather than passive investors, and the company controls many aspects of the business, including location and equipment ownership

. In summary, while the upfront franchise fee is only $10,000, the total cost to start operating a Chick-fil-A franchise including all associated expenses ranges from roughly $444,000 to over $2.3 million, with ongoing royalty and profit-sharing fees applied

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