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Chick-fil-A Franchise Cost & Fees

Date Incorporation: 1967

Franchising Since: 1987

Headquarters: Atlanta, Georgia

 

Business Description: Chick-fil-A's principal business is the development of a chain of retail quick-service restaurants specializing in a boneless breast of chicken sandwich. Most of these restaurants are operated by franchised operators who are independent contractors. Chick-fil-A also operates various Chick-fil-A and other restaurants itself from time to time and may do so in the future through its affiliates and subsidiaries. Chick-fil-A also licenses and continues to offer licenses to prospective Chick-fil-A Licensees from time to time who have access to locations such as schools, workplaces, universities, airports, hospitals and other similar locations (the "Licensed Sites") to sell Chick-fil-A brand products at such locations.

 

Franchise Offer: The franchisee (Operator) will operate a franchised Chick-fil-A Restaurant business which is a quick-service restaurant specializing in a boneless breast of chicken sandwich.

 

Financial Assistance: Chick-fil-A leases and subleases restaurant premises to its Operators. The terms for these leases and subleases vary depending in the location of the Chick-fil-A restaurant.

 

Training and Assistance: Operators must participate in an initial training program. The program generally commences at Chick-fil-A’s corporate headquarters in Atlanta, Georgia, and lasts approximately four to five weeks, but the actual location and length of program varies from time to time. Chick-fil-A intends, though it is not obligated, to prepare and offer various seminars and conferences to Operators from time to time in addition to its initial training program.

 

Territory: The Operator will be granted the right to operate one Chick-fil-A Licensed Unit at one specific Licensed Site location designated by Chick-fil-A. The rights granted to Operators under the Operator Agreement are limited to the franchised Chick-fil-A business location only. The Operator will not receive an exclusive or protected territory, express or implied. The Operator may face competition from other licensees or franchisees, from outlets that Chick-fil-A or affiliates own and/or operate, or from other channels of distribution or competitive brands that Chick-fil-A or affiliates control.

 

Term of Agreement and Renewal: The term terminates on the earlier on the earlier of December 31 of year that Agreement is signed or when the Lease expires if earlier. The term is automatically extended for one-year periods unless written notice given at least 30 days prior to end of existing term by either party.

 

Obligations and Restrictions: The Operator Agreement requires the Operator to devote full time and personal best efforts to operate the franchised Chick-fil-A Restaurant business to obtain the highest sales and profits possible and diligently develop and promote the reputation of the franchised Chick-fil-A Restaurant business, Chick-fil-A, and CFA Properties’ marks. Chick-fil-A requires the Operators to offer and sell only the Chick-fil-A brand products and other items that Chick-fil-A has approved.

 

Estimated Number of Units: Over 1,700 locations

 

Investment Tables:

Initial Investment:

Name of Fee Low High
Initial Fee $5,000 $5,000
Opening Inventory $21,000 $58,000
First Month's Rental of Equipment $750 $750
First Month's Lease/Sublease of Premises $2,000 $38,100
First Month's Insurance Expense $45 $4,400
Additional Funds (1st 3 Months of Operation) $174,000 $1,171,000
Total Estimate of Initial Investment $202,795 $1,277,250

 

Other Fees

Type of Fee Amount
Advertising May vary (a) between 0% to 3.25%, to be determined by Chick-fil-A, as a percentage of “Gross Receipts” or (b) by vote of Operators in local or regional areas.
Accounting Services $60
Rent $2,000 to $38,100 (including where applicable, percentage rent)
Insurance $45 to $4,400
Monthly Equipment Rental $750
Hardware and Software Support; High-Speed Internet Access $1,000 to $4,500 annually.
Penalty $50
Indemnification Will vary under the factual circumstances
Operating Service Charges Determined by formula.
Credit Cards Fees and Related Processing Fees Will vary.
Highway Signage Will vary under circumstances.
Cash Handling System Services $150 to $450 montly.

 The above information has been compiled from the FDD of Chick-fil-A. Year of FDD: 2014


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