Can You Own a Chick-Fil-A Franchise for 10k?

Chick-fil-a Franchisee Minimum Requirements to Own Business

Can you own a Chick-Fil-A franchise for 10k? As a prospective franchisee, to be able to start a business for $10k sounds too good to be true. How can a restaurant also be a low-cost business model?

Bottom line, the initial investment for buying a franchise with Chick-fil-A is only the $10,000 upfront fee. The funds must be non-gifted and non-borrowed funds. However, there are several other requirements you must meet to qualify for the business idea.

Short term, you must have the legal right to own a franchise in the United States. You must review and sign the current franchise agreement. Strong finances are crucial for small business owners; you must have no bankruptcy in your financial history.

In terms of business plans, you must be committed full-time to your business entity as the owner-operator. This level of commitment is essential for successful business ownership. Additionally, they require you divest yourself of all non-passive business opportunities to focus entirely on your for profit business.

Experience is also a key factor, with a requirement of 5+ years of professional work experience. Lastly, leadership qualities are essential, as you must have experience leading a team of people.

Strict Franchisee Selection and Requirements for a Successful Business

Meeting these requirements does not mean you will be selected as a franchisee. On average Chick-fil-A receives approx. 40,000-60,000+ applicants per year, of which the company only accepts about 80. That’s less than 0.1% acceptance rate, which means you have a better chance of getting into Harvard, Stanford, or even the US Secret Service!

Franchisees are referred to as operators required to actively work in the location full-time. Each franchisee is granted an exclusive territory to operate their Chick-fil-A location. Every Chick-fil-A location is closed on Sunday.

Chick-Fil-A Initial Franchise Fee and Costs 2024

Note: The subsequent expenses can be paid for using your initial months’ revenue or through borrowed funds. However, be aware that this will reduce your personal take-home profit.

Initial franchise fees

• Franchise Fee: $10,000
• Opening Inventory: $15,050 to $121,210
• First Month’s Rental of Equipment: $750 to $5,000
• First Month’s Rent: $2,605 to $95,180
• First month’s insurance: $240 to $10,700
• Additional funds for other store-opening costs: $415,598 to $2,096,696

Chick-Fil-A does not have any additional net worth or liquid asset requirements.

Ongoing franchise fees

• Base operating service fee: 15% of sales per month
• Equipment rental: $750 to $5,000 per month
• Advertising fee: 0% to 3.25% per month
• Rent: $2,605 to $95,180 per month
• Insurance: $240 to $10,700 per month
• Hardware/software support and high-speed internet: $9,500 to $20,000 per year
• Cash handling system services: $85 to $450 per month

When considering opening a Chick-fil-A franchise, there are significant pros and cons. The brand clearly seeks franchise owners who are deeply committed.

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