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Chick-fil-A Franchise Information and Costs

Guest post by: Global BX

Article Overview: Truett Cathy opened his first ever restaurant establishment in rural Georgia 60 years ago. In the year 1964, his restaurant came out with its first boneless chicken breast sandwich, which was named Chick-fil-A, which was eventually adopted by the entire restaurant chain. The Chick-fil-A franchise is also the first chain of restaurants that offered chicken nuggets to its patron diners.

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Chick-fil-A Franchise Information and Costs

The Chick-fil-A Franchise

Truett Cathy opened his first ever restaurant establishment in rural Georgia 60 years ago. In the year 1964, his restaurant came out with its first boneless chicken breast sandwich, which was named Chick-fil-A, which was eventually adopted by the entire restaurant chain. The Chick-fil-A franchise is also the first chain of restaurants that offered chicken nuggets to its patron diners. Another groundbreaking move by the franchise was the decision to put up its restaurants inside shopping malls. The first franchise opened in 1967 in Atlanta, and almost all of the succeeding franchises are already located in big shopping malls. The company is still owned and managed privately by the Cathy family. With this strategy, the company never faltered over the years since it was established.

Learn More with this Chick-fil-A Franchise Review

As of today, there are about 1,430 Chick-fil-A branches across 38 US states, including Washington, D.C. The Chick-fil-A franchise continuously grows each year, and it has become the second biggest fast food chicken restaurant in the country, generating over $2.9 billion annual sales. It has benefit tremendously from 41 consecutive years of impressive sales growth, making it ahead of other food franchises operating in the industry today. The ongoing innovation at headquarters is specifically designed to continue on with its number one streak. A J.D. Power & Associates' 2008 survey hailed Chick-fil-A franchise as "Customer Service Champs" in conjunction with the Business Week. The company also earned dozens of awards from different industry publications and consumer groups over the years of its operations.

Chick-fil-A Franchise Cost

Compared to other companies within the same industry, a Chick-fil-A business is not actually considered a franchise. Entrepreneurs who are interested need to be a part of the network before they can officially operate a location. The company set the entry barrier to a very low initial investment of $5,000. Though, take note that there are strict rules along with this opportunity. All locations should be closed on Sundays. This rule gives operators time to attend church service and spend time with their loved ones. All locations are chosen by the parent company with no input at all from the operator. The entire 50 percent of net sales of each location goes directly to the corporation. The equipment needed for operations are also leased by the company for an additional 15 percent of the net income. You have to be very competitive to become a franchisee. From thousands of applicants for this franchise, the company chooses only a few hundred. Management prefers individuals with food service experience, high moral standing, as well as average to excellent credit history. The company's training program for a franchisee is one of the most comprehensive in the industry, lasting more than 2 weeks and should be passed successfully in order for you to open and manage a location.

Proven Advertising Strategy

Once you become part of a franchise operation, you can take advantage of the company's wide and innovative advertising methods. Over the past years, the Chick-fil-A billboards and trademarked advertising concepts won numerous ad awards and recognitions. All franchisees benefit from the campaigns' strategies to raise consumer awareness of the company's services and products. One of the most popular aspects of this campaign is the one that used cows in such anthropomorphic manner, wherein the cow responds in ways humans act. The cow humorously suggests viewers to "Eat More Chiken", with Chiken misspelled intentionally. Among the hit billboards of the company are two 3D fiberglass cows, where one stands on the other's back to write a message in big block letters. The whole idea of this campaign is to make the message huge and catchy enough for people not to forget.

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Re: Enticing Franchises - Top 9 List Re: Enticing Franchises - Top 9 List - All Franchise listed above are in millions of dollars. Do you have the list of Franchise in thousands
Re: Info for would be franchisers... Re: Info for would be franchisers... - [quote="Sebastien":1d29sdv1]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to. I just want to mention that all these magazines are NOT franchisee oriented. I mean these magazines are for franchise professionals. If you're looking to buy a franchise, you won't find much information in there. To answer your question, getting published in Franchise Times was fairly easy. I don't want to brag too much but I think I am known in the franchise industry. I was the marketing guy at Franchise.com for a few years before joining my new company, the World Franchising Network. So people know me and I have a very good relationship with Nancy Weingartner, the Managing Editor at Franchise Times. I was talking with her at the last Franchise Expo South in Miami and she mentioned she'd like me to be profiled. I was like "ok, sure!". I like this franchise executive profile thing in Franchise Times as it is rarely BS. People are usually really natural in there.[/quote:1d29sdv1] Thanks for the follow up Sebastien! And I can't say that I'm surprised that networking with the right people and managing your relationships with them properly are the keys to being published. I guess the old adage holds true of "it's not who you know, but who knows you" that's important.
how much for a franchise fee? how much for a franchise fee? - Dear Colleague There is no easy answer to this question. Things to consider: [list=] The sizeof the Franchise Clent base Expected Turnover Intellectual Property costs (recoup) Number of Franchises Number of employees Original Set up costs Franchise admin costs An example: A franchise that I was involved in setting was to a simple "lawn mowing/home repair" franchise. The Franchise included national/local advertising - preparation of client lists - general admin - central accounting etc The Franchise involved 300-500 clients - and an annual turnover of about $300,000 . The annual franchise fee was $30,000. Hope that this gives you some idea Take care Ian[/list]
Re: Franchise Surveys Re: Franchise Surveys - Another good tool to researching a franchise is to speak with their existing franchisees. This contact information is included in most Franchise Disclosure Documents. In order to get a Franchise Disclosure Document or FDD as it is often referred to, you will have to complete a basic franchise application. The franchisor will then usually provide you with the FDD at that time. Included in that book of information is a list of the existing franchisees, the contract, the investment information etc... This information is required by Federal Law to be disclosed to your prior to making a purchase. So be sure to do your research and start with the Franchise Documents to get the initial information.
Re: Info for would be franchisers... Re: Info for would be franchisers... - [quote="Sebastien":2gam0klq][quote="BuzzAroundBooks":2gam0klq]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to.[/quote:2gam0klq][/quote:2gam0klq] That is really what I look for in any industry publication. We lead busy lives and when people fill their magazines with fluff, not only does it benefit no one, but it makes us truly appreciate those that don't. Thanks!


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