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: 1,900
|Name of Fee||Low||High|
|Initial Franchise Fee||$10,000||$10,000|
|First Month's Rental of Equipment||$750||$2,000|
|First Month's Lease/Sublease of Premises||$2,100||$42,000|
|First Month's Insurance Expense||$125||$5,250|
|Additional Funds (1st 3 Months of Operation)||$98,000||$920,000|
|Total Estimate of Initial Investment||$130,975||$1,044,20|
|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.|
|Additional Franchise Fee||$5,000 for each additional Chick-fil-A Restaurant business.|
|Business Services Fee||$300|
|Rent||$2,100 to $42,000 (including where applicable, percentage rent).|
|Insurance||$125 to $5,250|
|Equipment Rental||$750 to $2,000|
|Hardware and Software Support; High-Speed Internet Access||$1,000 to $4,500 annually.|
|Fines – Minimum Standards and Procedures||Will vary under the circumstances.|
|Indemnification||Will vary under the circumstances.|
|Operating Service Charges||Determined by formula.|
|Credit Cards Fees and Related Processing Fees||Will vary.|
|Highway Signage||Will vary under circumstances.|
|Interest on Late Payments||The maximum rate permitted by law, or if none, 1 ¼% per month.|
|Cash Handling System Services||$150 to $450 (monthly)|
|Reimbursement of Cost of Performance||Costs and expenses of performance.|
|Holdover Liquidated Damages||Double the base rent and percentage rent.|
The above information has been compiled from the FDD of Chick-fil-A Year of FDD: 2015
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