About Chick-fil-A
Chick-fil-A is America's most popular fast-food chain by customer satisfaction, with over 3,000 locations generating more than $21 billion in annual sales. The brand's unique franchise model is unlike any other in the industry — the company retains ownership of all restaurant buildings and equipment, and franchisees (called 'Operators') pay just a $10,000 entry fee.
While the entry fee is surprisingly low, Chick-fil-A's model is far more restrictive than traditional franchises. Operators cannot own multiple locations and must work full-time in their restaurant. The company takes 50% of net profits plus 15% royalty, making it one of the highest-cost models on an ongoing basis. That said, acceptance rates are under 1%, making it the most competitive franchise application in the US.
Frequently Asked Questions
How much does a Chick-fil-A franchise cost?
The initial franchise fee is only $10,000, making it one of the most affordable to enter. However, Chick-fil-A owns all the real estate and equipment, and the total system investment (which they fund) ranges from $582,000 to $2.1 million.
What are the ongoing fees for Chick-fil-A?
Chick-fil-A charges a 15% royalty on gross sales plus takes 50% of net profits, making it among the highest ongoing cost structures in franchising.
How hard is it to get a Chick-fil-A franchise?
Extremely difficult. Chick-fil-A receives over 60,000 applications per year and approves fewer than 100 new operators, a less than 1% acceptance rate.
Can I own multiple Chick-fil-A locations?
No. Chick-fil-A's model requires operators to work full-time in a single location. Multi-unit ownership is not permitted.
Why is Chick-fil-A's royalty so high?
Because Chick-fil-A invests heavily in the real estate, construction, and equipment — costs that other franchisees must fund themselves. The higher ongoing fees reflect this upfront capital the company puts in.