How to Open a Chick-fil-A Franchise: Costs, Requirements, and Profits

Ultimate Guide to Opening a Chick-fil-A Franchise

Known for its iconic chicken sandwiches, Chick-fil-A is one of North America’s most popular fast food franchises with over 2,600+ outlets. Its outlets are the most-frequented fast food restaurant business in 38 out of 50 states and Chick-fil-A made over $21 billion in 2023, more than double of its competitors like Popeyes and KFC. If you are looking to get a slice of the fast food industry pie, a Chick-fil-A franchise can be a highly lucrative, and competitive opportunity.

However, Chick-fil-A has a unique set of requirements for its prospective franchisees, differentiating it from the rest of the Quick Service Restaurant (QSR) industry in terms of ownership, profit sharing, and needed commitment.

If you are interested in operating a Chick-fil-A franchise, we are going to break down what it takes to partner with Chick-fil-A. Let’s get started.

At a glance

Liquid capital required: No minimum liquid capital is needed
Investment:  $585,500 to $3,337,000*
Franchise fee: $10,000
Royalty: 15% of sales + 50% of profit before tax
Offers Financing: No
Units in operation: 3000+
Founded: 1946

*Chick-fil-A covers the entirety of the initial investment except for the franchise fee. We’ll cover more information about these costs in more detail further down this page.

History of Chick-Fil-A

Founded by S. Truett Cathy in 1946, Chick-fil-A was originally a small restaurant named The Dwarf Grill in Atlanta, Georgia. As the restaurant prospered, Cathy established the Chick-fil-A, Inc. in Atlanta’s Greenbriar mall in 1964. However, the company only started offering restaurant franchising opportunities to operators in 1987.

Chick-fil-A has since grown to become one of the largest quick-service chicken restaurant chains in the United States, with over 3,000+ outlets across 48 states, Washington D.C., Puerto Rico, and Canada. The Cathy family still maintains complete ownership over Chick-fil-A, Inc. and its franchised outlets due to the company’s unique business model in the QSR franchising industry.

Is Chick-fil-A the right franchise for you?

With Chick-fil-A's low startup fees and strong sales that exceed its competitors, the opportunity to franchise with them can be enticing to many prospective franchisees.

However, due to Chick-fil-A's unique business model, running an outlet provides no equity in the business but requires significant active commitment and dedication from the franchisee. For this reason, it may not be a good fit for investors looking to build passive investment portfolios.

To help you evaluate Chick-fil-A holistically, we’ve done a side-by-side comparison of the pros and cons of becoming a Chick-fil-A franchisee.

Pros and cons of owning a Chick-fil-A franchise

                                    Pros                                                                       Cons

Chick-fil-A franchisee minimum requirements

If you’ve decided that Chick-fil-A’s the right franchise for you, it's time to throw your hat in the ring for a chance to be offered a franchise opportunity. Understanding the type of operator Chick-fil-A looks for can help you maximize your chances of being offered a franchise opportunity.

Here are some of the minimal requirements Chick-fil-A expects from their candidates.

• The legal right to own and operate a franchise in the United States
• An upfront franchise fee of $10,000 - the funds cannot be borrowed or gifted for the upfront fee.
• A good credit report and no bankruptcy filings in your financial history
• 5+ years of professional experience in managing and leading teams and businesses. No prior restaurant experience is necessary.
• Full-time and hands-on commitment to running the Chick-fil-A restaurant and being actively involved in the day-to-day operations of the business.
• No other active business ventures and income streams when pursuing a Chick-fil-A franchise.

Keep in mind that meeting the minimum requirements isn’t a guarantee of being offered a franchise opportunity. The company receives over 40,000 applications yearly and accepts only a handful of candidates.

How hard is it to get a Chick-Fil-A franchise?

Chick-fil-A has an acceptance rate of less than 1%, an acceptance rate lower than those of prestigious universities like Harvard and Stanford. This is because, unlike most fast food franchises which can cost millions to start up, Chick-fil-A only requires you to have $10,000, making it an accessible opportunity to most people who are interested in becoming a franchisee.

Now, you might be wondering why the startup cost is low and the competition is so fierce for the opportunity to run a Chick-fil-A franchise compared to its competitors. The secret to it lies in Chick-fil-A’s business model.

How does the Chick-fil-A franchise model work?

Chick-fil-A's unique franchising model, unlike other big QSR franchises, helps the parent company to maintain complete ownership over the entire franchise chain in exchange for fronting outlet start-up costs. Let’s take a closer look at how the Chick-fil-A’s business model works.

With most QSR franchises, like KFC and McDonald’s, the franchisee owns the business while paying royalties and a fee to use the franchisor’s brand and business format. Usually, there’s a huge initial investment needed from the franchisee’s end to open a restaurant franchise outlet.

However, with a Chick-fil-A franchise, Chick-fil-A Inc. covers almost the entire cost of opening a restaurant which can run anywhere from $585,500 to $3,337,000. This means Chick-fil-A’s franchisees are more operators than owners as Chick-fil-A owns the restaurant while franchisees run the day-to-day business.

The franchisee would handle daily operations like hiring, inventory management, and service while Chick-fil-A retains ownership of the property and collects rent and royalties from the franchisee. This means Chick-fil-A does not need to have high financial barriers for its operators.

Here are some defining characteristics of Chick-fil-A’s business model:

Chick-fil-A franchise operator vs owner

Chick-fil-A calls its franchisees “operators” as they are active operators of the restaurant who do not own it. They don’t look for passive investors but individuals willing to commit to the franchise by taking it on as their sole active business.

Franchisor support

One of the defining features of Chick-fil-A is the comprehensive training and support it provides its operators. In addition to providing all the property and equipment needed to open the restaurant, Chick-fil-A requires its operators to take part in a multi-week training on operations and management to prepare to run the business.

Now that you understand how Chick-fil-A works, it's time to take a look at the various opportunities offered by the company.

What are the franchise opportunities offered by Chick-fil-A?

Once you’ve decided to open a Chick-fil-A outlet, there are a few different ways you can go about it. Let’s take a look at the different options Chick-fil-A offers its operators

After a rigorous selection process, Chick-fil-A will offer the selected candidates the opportunity to run a single restaurant. The company chooses the location and the restaurant unit could be situated in malls, drive-throughs, or freestanding units.

Freestanding units

These are full-service restaurants established in freestanding locations, often offering eat-in and drive-through services.

Mall units

As the name implies, mall units and inline units are usually located near or inside locations such as shopping malls and centers.

Captive venue units

Captive venue units are located in non-traditional locations such as office buildings, airports, big-box stores, downtown areas, schools, universities, sports stadiums, and theme parks, where there is a captive audience. The Franchise Disclosure Document (FDD) offered for prospective operators in these units is different from the standard one.

Drive-through-only units

These units provide drive-through order pickups and don’t offer eat-in services.

Chick-fil-A Food Trucks

Food trucks are another option Chick-fil-A offers prospective operators. These only serve selected products and the business practices can vary by location.

International expansion plans

As of 2024, Chick-fil-A operates in Puerto Rico and Canada in addition to its US outlets. Chick-fil-A is also looking at expanding to Asia and Europe in 2025 with plans to launch in other international markets by 2030. Chick-fil-A is coming to the UK in 2025 with the CEO, Andrew Cathy, announcing that the franchise is planning on opening 5 locally operated locations in the country.

Once you’ve expressed interest in your ideal type of franchise opportunity for you, it’s time to take a look at funding. The type of franchise you are offered as well as the location of the franchise will determine the total investment needed to run the restaurant. While the initial cost of starting a Chick-fil-A restaurant from the franchisee’s side can be low, there are other ongoing costs that come into play once the business is up and running.

How much does a Chick-fil-A franchise cost?

While the total costs of starting a Chick-fil-A franchise can go up to $3.5 million, franchisees only need to pay the $10,000 initial fee. Unlike most other franchisors, Chick-fil-A covers most opening expenses and has no requirements for minimum net worth or liquid assets.

Why does it only cost $10,000 to own a Chick-fil-A franchise?

The initial franchising fee for Chick-fil-A, at $10,000, is considerably low compared to the industry average (initial franchise fees for franchises like McDonalds and Taco Bell can go upward of $40,000), but there is a catch.

The Chick-fil-A franchise fee is so low because the company wants to maintain complete ownership of the franchise. In other words, the franchisee will not have equity in the business, only the right to operate it.

Chick-fil-A’s fees fall into three categories: restaurant startup costs, ongoing costs, and various charges for miscellaneous items.

Chick-fil-A franchise fee - $10,000

Here's a breakdown of the startup cost. Keep in mind that you only need to cover the initial fee yourself. After that, you can use your first few months' revenue or borrowed funds to pay for everything else.

• Initial fee: $10,000
• Opening inventory: $11,500 - $65,000
• First month’s equipment rental: Dependent on equipment
• First month’s rent: Dependent on premises
• First month’s insurance: Dependent on premises
• Additional funds for other store-opening costs: $149,000 - $951,000

Ongoing franchise fees

Once you’ve opened your outlet, Chick-fil-A will start charging you ongoing fees, which are famously the highest in the QSR industry. Although Chick-fil-A costs less upfront, franchisees end up paying significantly more to the company over time to run the business.

Here are some of the ongoing costs associated with running a Chick-fil-A franchise:

• Base operating service fee: 15% of sales per month
• Equipment rental: Dependent on equipment cost
• Indemnification: Dependent on circumstances
• Rent: Dependent on property cost
• Late Payment Charge: 12% per annum interest on all amounts 30 days overdue

Additional fees

Lastly, Chick-fil-A might charge you extra fees depending on your specific situation, as detailed in the Franchise Agreement. These fees could include:

• Occupancy charge: 8% to 50% of sales, for businesses operating as concessions
• Advertising training support and services fee: $250 - 400 per employee
• Additional franchise fee: $5,000 dependent on Chick-fil-A offering you another location
• Food truck usage fee: $2,200 to $2,750 per month if you’re operating a Chick-fil-A food truck, plus other costs
• Audit: Total amount of any underpayment plus 12% per annum interest
• Indemnification: You’ll be personally required to reimburse for any lawsuits if someone sues Chick-fil-A due to your negligence
• Handling fee: 8% of the purchase price for your equipment and/or signage
• Interest on late payments: 12% per annum interest on all amounts 30 days overdue
• Liquidated damages holdover: At the end of your contract, if you don’t vacate Chick-fil-A’s location in time, you’ll be charged double the base rent plus an additional charge

Chick-fil-A’s initial low investment makes the franchise very attractive for several prospective franchise buyers and understandably so, considering that most QSR franchises have much higher financial barriers to entry. However, it comes with higher ongoing costs and a very active commitment to the business, so having a comprehensive understanding of the total costs can help you make the right decision.

How much does a Chick-fil-A franchise owner make?

One of the biggest benefits of Chick-fil-A is its earning potential for operators. While the company does charge hefty royalties, it has some of the highest earning potential in the QSR industry. Chick-fil-A’s latest FDD shows impressive numbers, with a remarkable 14.8% growth in sales. The average Chick-fil-A restaurant location has around $9.374 million in gross annual sales, and nearly half of the 2,049 domestic franchised restaurants exceeded the baseline or met the average sales value. The top store earned $19.094 million, more than the combined average sales of several of its competitors including Cheesecake Factory, and Cracker Barrel.

That said, the average sale and net profits are two very different figures, especially in the QSR industry where the margins are razor-thin. An operator’s income would be calculated after deducting the store expenses and the royalties charged by the parent company. While Chick-fil-A’s sales numbers are tempting, it's important to remember that overheads, employee costs, and other expenses come out of the operator’s pocket. Let’s take a look at how much an operator can make when running a Chick-fil-A restaurant.

Chick-fil-A franchise profit share

The operator needs to pay 15% of sales and 50% of profit before tax to Chick-fil-A as ongoing royalties. It is the highest royalty rate in the QSR industry, as brands like Mcdonald's and KFC only charge 4-5% as their royalty rate.

As Chick-fil-A covers most of the initial investment in setting up the restaurant, the higher royalty rates are to be expected.

Chick-fil-A franchise owner income/salary

Chick-fil-A does not reveal how much the owners take home at the end of a year, but the general consensus is that it can range from 5%-7% of revenue. The average Chick-fil-A makes around $4.1 million in sales, resulting in around $200,000 a year for the operator after overhead and royalties, which is slightly higher than average in the QSR franchise industry.

However, you cannot count on the average earnings as a definite figure as earnings can vary significantly based on the restaurant's performance. If the restaurant is highly profitable, you can earn a substantial income. However, if profits are low or non-existent, your earnings will reflect that.

Remember that average figures are not guaranteed figures and the only way to really know how much a franchisee makes is to reach out to existing operators. Always make sure you’ve talked to plenty of current and former operators of Chick-fil-A before making your decision.

Once you have a handle on the finances of running a Chick-fil-A outlet and are sure it’s right for you, it's time to get started with your Chick-fil-A franchise application.

How does the Chick-fil-A franchise process work?

If you think Chick-fil-A is the right business for you, here’s how you go about becoming a franchisee.

1. Fill out the Expression of Interest (EOI)

The first step is to show your interest in Chick-fil-A by submitting an online Expression of Interest (EOI). Chick-fil-A has over 40,000 applicants annually, so ideally, you’ll need to be someone who meets their minimum requirements of:

• Having a legal right to do business in the US
• Hands-on commitment to the business
• No bankruptcy in financial history
• Divest from other businesses
• 5+ years of professional experience

The EOI will also require your geographic information, as Chick-fil-A usually chooses the applicants for already planned store expansions. If Chick-fil-A decides you meet their preliminary criteria, they will invite you to fill out their Operator Application.

2. Submit the Operator Application

Your follow-up operator application may ask for detailed information about your personal finances, education, professional experience and community involvement. Chick-fil-A prefers its applicants to be active in the communities they serve, so highlighting your community involvement can help you stand out among applicants.

3. Go through the selection and interview process

If Chick-fil-A shortlists you as a prospective operator for one of their planned locations, they might invite you to the next stage: interviews.

The interviews can be virtual or physical, and they’ll assess your fit for running a full-time restaurant under their name. Chick-fil-A looks for passionate individuals deeply involved with their community, are hands-on with their work, and have experience running teams, so it is important to make sure your passion and entrepreneurial experience shine in the interviews.

Chick-fil-A also reaches out to your family, friends, and the broader community to verify your character as well as understand your skills in community building and running a business.

4. Review the Chick-fil-A franchise agreement

Once you get through the interviews, Chick-fil-A may offer you an opportunity to run a Chick-fil-A restaurant in a single location.

They will share their franchise agreement and the Franchise Disclosure Document (FDD) with you and it is highly recommended to review the documents closely with the help of a franchise lawyer. The agreement would form the basis of your relationship with Chick-fil-A, and the FDD will outline your rights and responsibilities as well as the terms and conditions of joining the franchise.

Here are some of the key elements to keep in mind when you look through Chick-fil-A’s documents:

• Personal Guarantee: A guarantee is a pledge used as security to fulfill a debt. Chick-fil-A requires you to be personally liable for any damages if you want to run your outlet as an LLC. Otherwise, their franchise agreement doesn’t ask for a personal guarantee.
• The timing of opening: Since Chick-fil-A will be deciding your outlet’s opening, it is good to negotiate for maximum flexibility to account for unforeseen circumstances.

However, the FDD shouldn’t be the only document you consult before making the decision. Reaching out to current and former operators can help you understand the realities of running a Chick-fil-A outlet.

If you are fully satisfied, you can sign the agreement and enter into a contractual relationship with Chick-fil-A.

A note on the Franchise Disclosure Document (FDD)

An FDD is a legal document with key information about the specific franchise, giving you a starting point for in-depth research. It has 23 items in it and with any franchise, this should be your starting point of research. You can access Chick-fil-A’s FDD here. Check out our Ultimate Franchising Guide to learn more about FDDs.

5. Attend a multi-week training

Chick-fil-A expects its operators to attend the blended virtual and in-person training program, lasting 3-4 weeks, before starting their restaurant. At the end of the training, you’ll get to shadow a successful operator on how they run their business. The training comprehensively covers several aspects of running a Chick-fil-A restaurant including:

• Food safety and preparation of Chick-fil-A menu items
• Hiring and managing a team of employees to support your outlet
• Accounting and reporting to ensure smooth operations
• Business development, customer service, and marketing
• Legalities of running a Chick-fil-A

6. Prepare for your grand opening

While Chick-fil-A will handle all of the site preparation for your restaurant, you’ll still need to set up your operational activities. You’ll be responsible for hiring a team, purchasing inventory as well as buying insurance in anticipation of your grand opening.

Fast food is one of the most competitive industries in the world and partnering with the right franchisor can increase your return on investment significantly. Chick-fil-A’s booming sales make it one of the most profitable and beloved franchises in the USA. Chick-fil-A provides you with a loyal customer base, strong support, and low investment, setting you up for success but it is a very demanding franchise without the benefit of true ownership. For individuals looking for franchises with low investment costs and high involvement, Chick-fil-A can be an attractive proposition. However, if you find Chick-fil-A’s requirements too demanding and hands-on, there are some other alternatives you can look into.

What are some alternatives to Chick-fil-A?

While Chick-fil-A is the cheapest fast food franchise, it also is one of the most demanding and hardest to buy into. If you are set on a fast food franchise and have a larger budget, some of the following options could appeal to you.

McDonald’s

McDonald’s is one of the most iconic franchises in the world, and if you have the cash to spare, it can be a great investment. A global leader in fast food with over 38,000 locations worldwide, McDonald’s consistently ranks high in franchise opportunities due to its iconic brand, extensive marketing, and reliable support system.

Pizza Hut

Pizza Hut, founded in 1958, is a top contender for individuals seeking pizza franchises. With nearly 15,000 locations worldwide, it dwarfs Papa John's 5,000, showcasing its global reach. You'll benefit from Pizza Hut's strong brand loyalty, innovative menu, and comprehensive franchise support, making it a smart and profitable investment.

Dunkin’

Dunkin’, established in 1950, has become a household name for coffee and doughnuts. With over 8,500 locations across 41 states, it offers a robust and recognizable brand. Dunkin’s strong marketing, loyal customer base, and efficient franchise support make it a prime opportunity for aspiring business owners.

While Chick-fil-A offers a compelling option for franchising, there are many other types of franchises you can consider based on your interests and goals. Taking the time to research and evaluate your options carefully can help set you up for success with your franchise, and our quiz can help you narrow down your options in no time.

FAQ

1. Is Chick-fil-A a franchise or corporation or chain?

It is a combination of all three models. Due to Chick-fil-A’s unique franchising model in which it retains ownership and a significant amount of control in all its stores, it can be considered to be a restaurant chain. However, by definition, it is a franchise as it provides a license to operators to run a business under the brand name.

2. Does Chick-fil-A offer a reduced initial franchise fee for veterans?

Unfortunately, Chick-fil-A doesn’t offer any special waivers or discounts for veteran applicants.

3. What are the types of franchise opportunities that Chick-fil-A offers?

Chick-fil-A offers operators an opportunity to run a restaurant, as freestanding units, mall units, captive venue units, and food trucks.

4. What are the benefits of franchising with Chick-fil-A?

Chick-fil-A offers an opportunity to be a part of one of the world’s largest brands with low startup costs, high sales, and extensive franchise support.

5. Should you have worked at a Chick-fil-A to be offered a franchise opportunity?

No. A significant portion of operators have never worked for Chick-fil-A outlets before applying to become a franchisee.

6. Do you need restaurant management experience to run a Chick-fil-A outlet?

No. While some operators have a background in the restaurant industry, most operators of Chick-fil-A come from widely different fields. Chick-fil-A operators have previously been law enforcement officers, manufacturing experts, educators, healthcare professionals, and more.

7. Is Chick-fil-A a good investment?

If you are someone who is looking for passive opportunities to add to your investment portfolio or are looking to build equity via franchising, then Chick-fil-A would not be a good investment for you. With Chick-fil-A, you don’t own the business even as you operate it and there is no route to ownership, making it a bad fit for most investors.

8. Can operators own more than 1 location?

A common misunderstanding among first-time franchisors is that Chick-fil-A only offers one location to a franchisor. While there’s some truth to this as initial candidates are only offered single units, high-performing franchise operators can be chosen by the company to run multiple locations.