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