In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a Chick-fil-A franchise, based on Item 7 of the company’s 2023 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a Chick-fil-A franchise, based on Items 5 and 6 of the company’s 2023 FDD
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Section IV – News updates on the Chick-fil-A franchise opportunity
Section V – Presentation and analysis of Chick-fil-A’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:
- 2022 average, median, high, and low sales for the 182 domestic non-satellite franchised Operator Chick-fil-A Restaurants located in malls that had been open and operated by Operators for at least one full calendar year as of December 31, 2022
- percentage of domestic non-satellite franchised Operator Chick-fil-A Restaurants located in malls that had been open and operated by Operators for at least one full calendar year as of December 31, 2022 and generated annual sales of less than $2,300,000; between $2,300,000 and $3,700,000; and over $3,700,000, respectively
- 2022 average, median, high, and low sales for the 1,925 domestic non-satellite franchised Operator Chick-fil-A Restaurants located in non-malls that had been open and operated by Operators for at least one full calendar year as of December 31, 2022
- percentage of domestic non-satellite franchised Operator Chick-fil-A Restaurants located in non-malls that had been open and operated by Operators for at least one full calendar year as of December 31, 2022 and generated annual sales of less than $7,600,000; between $7,600,000 and $9,500,000; and over $9,500,000, respectively
Section VI – Key ratios, comparables, computations, and analyses for the Chick-fil-A franchise opportunity (exclusive content for Platinum subscribers)
Section I – Chick-fil-A Franchise Costs
- Chick-fil-A franchise costs, based on Item 7 of the company’s 2023 FDD:
- Initial Franchise Fee: $10,000
- Opening Inventory: $13,500 to $140,000
- First Month’s Rental of Equipment: $750 to $5,000
- First Month’s Lease/Sublease of Premises: $2,550 to $85,500
- First Month’s Insurance Expense: $240 to $12,000
- Additional Funds: $491,345 to $2,550,935
- Total Estimated Chick-fil-A Franchise Costs: $518,385 to $2,803,435
Section II – Chick-fil-A’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Chick-fil-A’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:
- Initial Franchise Fee: $10,000
- Additional Franchise Fee: $5,000 for each additional Chick-fil-A Restaurant business, whether for a traditional location or a satellite unit
- Advertising: advertising fund contribution may vary (a) between 0% and 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
- “Base Operating Service Fee” for a particular restaurant for each calendar month is the amount by which 15% of the Gross Receipts for the month exceeds the monthly equipment rental payable and business services fee for the calendar month.
- “Additional Operating Service Fee” as to a particular restaurant for each calendar month is, in the case of the Initial Business (i.e., your first restaurant), 50% of the Net Profit for Initial Business for the month.
Section III – Number of Franchised and Company-Owned Chick-fil-A Outlets
Franchised
2020
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
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- Outlets at the End of the Year: 2,160
- Net Change: +74
2021
- Outlets at the Start of the Year: 2,152
- Outlets at the End of the Year: 2,242
- Net Change: +90
2022
- Outlets at the Start of the Year: 2,230
- Outlets at the End of the Year: 2,339
- Net Change: +109
Company-Owned
2020
- Outlets at the Start of the Year: 26
- Outlets at the End of the Year: 49
- Net Change: +23
2021
- Outlets at the Start of the Year: 57
- Outlets at the End of the Year: 69
- Net Change: +12
2022
🎯Find Best-Fit Franchises Still Available in Your Target Area (Free Tool)
When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does. A franchise specialist will be in touch to present what's available.- Outlets at the Start of the Year: 81
- Outlets at the End of the Year: 72
- Net Change: -9
Section IV – News Updates on the Chick-fil-A Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Chick-fil-A Franchise (Item 19, 2023 FDD)
Domestic Chick-fil-A Restaurants Included in Sample
- As of December 31, 2022, there were approximately 2,806 domestic Chick-fil-A Restaurants open and operating, including approximately 2,411 domestic company-operated and franchised Operator Chick-fil-A Restaurants and 395 domestic 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.
- As of December 31, 2022, approximately 2,338 of the 2,411 domestic Chick-fil-A Restaurants were being operated by Operators and 73 of the 2,411 domestic Chick-fil-A Restaurants were being operated by Chick-fil-A or its affiliates.
- The domestic Chick-fil-A Restaurants that are operated or were operated at any time during calendar year 2022 by Chick-fil-A or its affiliates, and their annual sales volumes, are not the subject of these financial performance representations.
- Approximately 2,122 of those 2,338 domestic Chick-fil-A Restaurants being operated by Operators had been open and operated by Operators for at least one full calendar year as of December 31, 2022 and had been operated by Operators during the entire year.
- Of these 2,122 domestic Chick-fil-A Restaurants operated by Operators, 15 were “satellite” units. Those 15 satellite units and their annual sales volumes are not the subject of these financial performance representations.
- The remaining 2,107 non-satellite domestic Chick-fil-A Restaurants that had been open and operated by Operators for at least one full calendar year as of December 31, 2022, and their annual sales volumes, are the subject of these financial performance representations and discussed below.
- Approximately 182 of the 2,107 domestic non-satellite franchised Operator Chick-fil-A Restaurants that had been open and operated by Operators for at least one full calendar year as of December 31, 2022 were located in malls, and approximately 1,925 of the 2,107 domestic non-satellite franchised Operator Chick-fil-A Restaurants that had been open and operated by Operators for at least one full calendar year as of December 31, 2022 were located in non-mall environments (e.g., freestanding or drive-thru only units).
- During the calendar year ending December 31, 2022, 4 domestic non-satellite franchised Operator Chick-fil-A Restaurants located in mall units permanently closed, of which 0 had been open for less than 12 months, and 13 domestic non-satellite franchised Operator Chick-fil-A Restaurants located in non-mall environments permanently closed, of which 0 had been open less than 12 months.
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 franchised Operator 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 franchised Operator 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 franchised Operator Chick-fil-A Restaurant, or (ii) pursuant to telephone or other similar orders received or filled at or in the franchised Operator Chick-fil-A Restaurant.
- Both non-satellite franchised Operator Chick-fil-A Restaurants located in malls and non-satellite franchised Operator Chick-fil-A Restaurants located in non-mall environments are similar with respect to their operations and receive similar services from Chick-fil-A.
- Because franchised non-satellite Operator Chick-fil-A Restaurants located in malls and franchised non-satellite Operator Chick-fil-A Restaurants located in non-mall environments achieve generally different levels of financial performance, financial performance representations have been included for each type of Restaurant in order to provide information relevant to prospective Operators.
- Some franchised Operator Chick-fil-A Restaurants have sold this amount. Your individual results may differ. There is no assurance that you’ll sell as much.
Annual Sales Volume of Domestic Non-Satellite Franchised Operator Chick-fil-A Restaurants Located in Malls That Had Been Open and Operated by Operators for at Least One Full Calendar Year as of December 31, 2022 (182 Units)
- Less than $2,300,000: approximately 32%
- Between $2,300,000 and $3,700,000: approximately 34%
- Over $3,700,000: approximately 34%
- Average: $3,732,694 (62 of the 182 (or 34%) did as well or better than the average)
- Median: $2,694,009
- Highest: $16,220,064
- Lowest: $1,038,739
Annual Sales Volume of Domestic Non-Satellite Franchised Operator Chick-fil-A Restaurants Located in Non-Malls That Had Been Open and Operated by Operators for at Least One Full Calendar Year as of December 31, 2022 (1,925 Units)
- Less than $7,600,000: approximately 34%
- Between $7,600,000 and $9,500,000: approximately 33%
- Over $9,500,000: approximately 33%
- Average: $8,675,749 (919 of the 1,925 (or 48%) did as well or better than the average)
- Median: $8,580,978
- Highest: $16,985,395
- Lowest: $2,151,516
Section VI – Chick-fil-A Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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