When husband and wife entrepreneurs seek time flexibility and freedom, they frequently consider franchising as an option. As with any business venture, there are a wide range of factors to consider before investing in a franchise. Investing in a Chick-fil-a franchise comes with its own unique set of questions, opportunities, and considerations. The following FAQ takes a look at this popular franchise opportunity, from the perspective of husband and wife entrepreneurs.
What Is Chick-fil-A?
Chick-fil-A is a fast-food restaurant chain, primarily in the United States. Its main focus is a menu of chicken entrees served as sandwiches, wraps, and salads. Chick-fil-A is one of the largest US quick-service restaurant chains, exceeding US$10 billion in sales in 2018.
What Are the Benefits of Investing in a Chick-fil-A Franchise?
Investing in a Chick-fil-A franchise offers many benefits to entrepreneurs. These include:
- High name recognition – Chick-fil-A is one of the most recognizable names in the quick-service restaurants industry, providing an established customer base and reputation. This alone can provide a major boost to a business, especially for husband and wife entrepreneurs seeking greater name recognition.
- Excellent training programs – Chick-fil-A provides an extensive training program in order to equip operators with the necessary skills to run a successful restaurant. This includes courses on food safety, equipment and facilities management, customer service, and more.
- Low cost of entry – The franchise fee for a Chick-fil-A restaurant is lower than what’s charged by many of its competitors. This makes it a more feasible option for husband and wife entrepreneurs who are working with limited resources.
- High potential for expansion – At present, Chick-fil-A operates over 2,400 locations throughout the United States. However, the company is rapidly growing, and plans to open hundreds of new locations in the US and abroad in the near future. This gives entrepreneurs the potential to expand their business quickly and easily.
- Opportunity for creative marketing-Chick-fil-A encourages franchisees to develop creative marketing and promotional strategies. Their well-known Cow Campaigns are one example of how Chick-fil-A engages its customers. As a franchisee, you’ll have the opportunity to come up with innovative ideas to attract new customers and retain existing ones.
What Types of Fees Are Involved in Opening a Chick-fil-A Franchise?
Before investing in a Chick-fil-A franchise, it’s important to understand the various fees that are associated with this opportunity. These include:
- A franchise fee – The franchise fee is a one-time fee that must be paid upfront before the franchisor can sign the franchise agreement. The franchise fee for a Chick-fil-A restaurant can range from $10,000 to $40,000.
- Startup and operating costs – In addition to the franchise fee, entrepreneurs will need to pay for startup and operating costs. These can include the cost of equipment, supplies, and personnel.
- Ongoing royalties – All franchisors charge royalties for use of their brand. Chick-fil-A charges a royalty fee of 4 percent of the total sales. This fee is paid to the franchisor quarterly.
- Advertising fees – Chick-fil-A operates a marketing fund that requires all franchisees to contribute 1 percent of their gross sales to the fund. This is used to pay for advertising and promotional materials.
What Are the Requirements for Becoming a Chick-fil-A Franchisee?
In order to become a Chick-fil-A franchisee, entrepreneurs must meet the following requirements:
- Must have a minimum of $250,000 net worth / liquid assets
- Must have a minimum of three years of restaurant or other relevant business experience
- Must have the ability to build a team of employees and demonstrate leadership qualities
- Must have the ability to build good relationships with customers and other businesses
- Must have the ability to create a business plan that is successful and long-term
- Must have a proven track record of success in customer service, employee management, and financial responsibility
What Other Considerations Should Be Made Before Investing in a Chick-fil-A Franchise?
In addition to understanding the financial requirements and fees associated with investing in a Chick-fil-A franchise, entrepreneurs should also take the following into consideration:
- The restaurant is closed on sundays – One of the major quirks of Chick-fil-A is that it is closed on Sundays. This means that business owners must be prepared to manage their businesses in a way that takes into account the lack of Sunday business.
- Competition – As Chick-fil-A continues to grow, competition increases. Entrepreneurs must be able to develop strategies to remain competitive, both in terms of marketing and pricing.
- Compliance – As a franchisor, Chick-fil-A has certain policies and procedures that must be followed. Entrepreneurs must work hard to ensure that their business is in compliance with all of the franchisor’s requirements.
Investing in a Chick-fil-A franchise can provide husband and wife entrepreneurs with time flexibility, freedom, and excellent rewards. With proper planning and due diligence, this opportunity can be a very lucrative one.
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