According to the franchise information group, Franchise City, a Chick-fil-A operator today can expect to earn an average of around $200,000 a year. This calculation is based on the average restaurant’s earnings and the percent gross that operators take (via Washington Post).
Despite its success, Chick-fil-A charges a franchise fee of just $10,000 to open a new restaurant, and the company told Business Insider it doesn’t require candidates to meet a threshold for net worth or liquid assets. That’s cheaper than every major fast-food chain in the US.
Startup costs range from $955,708 to $2.3 million, including a $45,000 franchise fee. Conversely, it only costs $10,00 to open a new Chick – fil -A, with no threshold for net worth or liquid assets. Chick – fil -A pays for all startup costs, including real estate, restaurant construction, and equipment.
Why Chick – fil-A franchises are so cheap It has no minimum net worth requirement. It has (by far) the lowest total investment cost for a franchisee ($ 10k ). It charges (by far) the highest royalty fee .
Low-Cost/Cheap Franchises Cruise Planners . Franchise fee : $10,995. Initial investment: $2,095 to $22,867. SuperGlass Windshield Repair. JAN-PRO . Jazzercise . Franchise fee : $1,250. Initial investment: $2,500 to $38,000. Dream Vacations. Franchise fee : $495 to $9,800. Initial investment: $3,245 to $21,850.
Chick – fil-A isn’t an investment. Chick – fil-A is very clear on this front: If you’re thinking of getting a Chick – fil-A restaurant solely because it’s a good investment, or because it could help you transition to something else down the road, then the company isn’t interested in letting you run one of its restaurants.
Most Chick – fil -A franchisees are limited to owning only one restaurant. ( You can even quibble with the word “owning,” because franchisees don’t get any equity in their restaurants.) They can ‘t sell them or pass them down to their family. If they decide they no longer want the franchise, Chick – fil -A just takes it back.
And Libava said that with its reputation for high-quality food and strong customer service, Chick – fil -A in many ways earned its standing. “They are considered a highly profitable fast-food franchise operation, even though they’re not a franchise ,” Libava said. “They are considered a good, profitable , well-run company.”
Up 17 percent for the year, Chick – fil -A stands behind only McDonald’s ($38.52 billion in American sales) and Starbucks ($20.49 billion). Average sales for a Chick – fil -A location brought in $4.6 million in 2018, up from $4.2 million in 2017 — more than three times that of major chicken competitor KFC.
It currently costs $10,000 dollars to open a Chick – Fil -A franchise in the US, and $15,000 CAD if you were looking to open one in Canada. There are no startup costs , costs for purchasing a building, for constructing a building or for buying equipment – Chick – Fil -A covers it all.
KFC made an average of $960,000 at each of its U.S. stores last year, for example, while Chick-fil-A made about $3.1 million per store. And they’re only open six days of the week.
Chick – fil-A worth $4.5 billion, report says.
The average Chick-fil-A executive compensation is $233,015 a year. The median estimated compensation for executives at Chick-fil-A including base salary and bonus is $226,554, or $108 per hour. At Chick-fil-A, the most compensated executive makes $700,000 , annually, and the lowest compensated makes $57,000 .
Many of the company’s values are influenced by the religious beliefs of its late founder, S. Truett Cathy, a devout Southern Baptist . All Chick-fil-A restaurants are closed for business on Sundays, as well as on Thanksgiving and Christmas.
The typical Chick – fil -A Manager salary is $15. Manager salaries at Chick – fil -A can range from $10 – $33. This estimate is based upon 146 Chick – fil -A Manager salary report(s) provided by employees or estimated based upon statistical methods.