Earnings Claims of Top Franchises Revealed

Earnings Claims of Top Franchises Revealed

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FDD Talk Daily: Annual Sales Volume of Domestic Chick-fil-A Restaurants Located in Malls and Non-Mall Environments

by Franchise Chatter on December 17, 2012

in Chicken Franchises, Franchise Earnings, Quick Service Franchise, Sandwich Franchise



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Highlights of Chick-fil-A’s Item 19 Financial Performance Representations (2012 FDD)

  • The franchisee will operate a franchised Chick-fil-A Restaurant business, which is a quick-service restaurant specializing in a boneless breast of chicken sandwich.
  • The total investment necessary to begin operation of a franchised Chick-fil-A Restaurant business is from $227,830 to $1,329,900. This includes $5,000 that must be paid to Chick-fil-A, Inc., as the franchisor, or any affiliate.

Domestic Chick-fil-A Restaurants Included in Sample

  • As of December 31, 2011, there were approximately 1,591 domestic Chick-fil-A Restaurants and Licensed Units, including approximately 1,365 domestic Chick-fil-A Restaurants and 226 Chick-fil-A Licensed Units.
  • The domestic Chick-fil-A Licensed Units, which are operated by Chick-fil-A Licensees, and their annual sales volumes are not the subject of these financial performance representations.
  • Chick-fil-A Sandwich Photo by roboppyAs of December 31, 2011, approximately 1,324 of the 1,365 domestic Chick-fil-A Restaurants were being operated by Operators and 41 of the 1,365 domestic Chick-fil-A Restaurants were being operated by Chick-fil-A or its affiliates.
  • Approximately 1,290 of those 1,365 domestic Chick-fil-A Restaurants had been open for at least one full calendar year as of December 31, 2011.
  • Of these 1,290 domestic Chick-fil-A Restaurants, 9 were “Satellite” locations, and their annual sales volumes are not the subject of these financial performance representations. The remaining 1,281 domestic Chick-fil-A Restaurants that had been open for at least one full calendar year as of December 31, 2011, and their annual sales volumes are the subject of these financial performance representations.
  • Approximately 321 of the 1,290 domestic Chick-fil-A Restaurants that had been open for at least one full calendar year as of December 31, 2011 were located in malls, and approximately 960 of the 1,290 domestic Chick-fil-A Restaurants that had been open for at least one full calendar year as of December 31, 2011 were located in non-mall environments (e.g. Free Standing Units (“FSUs”) and Drive-Thru Only Units (“DTOs”).

Annual Sales Volume of Domestic Chick-fil-A Restaurants

  • For purposes of the financial performance representations set forth below, the term “annual sales volume” includes a Chick-fil-A Restaurant’s entire gross receipts (excluding only sales taxes levied upon retail sales and payable over to the appropriate governmental authority) from sales at, from or related to the Chick-fil-A Restaurant during the applicable calendar year, whether for cash or on a charge, credit, or time basis, including sales and services (i) where orders originate and/or are accepted at, in or away from the Chick-fil-A Restaurant, or (ii) pursuant to telephone or other similar orders received or filled at or in the Chick-fil-A Restaurant.
  • Both Chick-fil-A Restaurants located in malls and Chick-fil-A Restaurants located in non-mall environments are similar with respect to their operations and receive similar services from Chick-fil-A.
  • Additionally, the financial performance representations set forth below have been derived from the financial reporting statements of both independent, franchised Operator and company-operated Chick-fil-A Restaurants. Both are similar with respect to their operations, financial performance from an annual sales volume perspective, and receive similar services from Chick-fil-A.


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