Chick-fil-A is an American Chain of Restaurants started by Mr Truett Cathy in the year 1946 presently operating more than 4000+ restaurants worldwide. The Company has a Breakfast menu, lunch and Dinner menu. At a few locations, it also provides catering services as well. Known for its Original Chicken sandwich comprised of deep-fried boneless chicken breast served on a toasted bun with two slices of dill pickle or with lettuce, tomato, and cheese. The word A indicates that their chicken is of top quality. Apart from the good quality chicken and food it also focuses on Customer service. To know more about Chick-fil-A franchising and Licensing Opportunities in India along with the Investment Cost, Profit Margin, and How to Apply, kindly go through the complete article below.
Why Chick-fil-A Franchise Cost Only $10k?
Many investors want to know why it only costs $ 10k to own a Chick-fil-A franchise, so below check the details.
- No Minimum Threshold Required:- Unlike other fast food brands, the Chick-fil-A franchise has a different Franchise Model criteria where the Franchise Team doesn’t require the Franchise owners to meet a threshold of net worth or liquid Assets.
- Minimum Advertisement:- The Chick-fil-A Team believes in Minimum spend on the Advertisement part since it believes in the customer first they believe it is also word of mouth and quality food which can boost sales.
Chick-fil-A Franchise Investment Cost & Requirements
As we mentioned above the Chick-fil-A Franchise’s Investment amount required is very low. That’s because, unlike other franchises, Chick-fil-A actually purchases the real estate and all of the equipment required to open the business, and then leases them to you via monthly rent payments. Now let’s look at the Investment cost and other requirements;
| Initial Franchise Fees | $10K (₹8 lakhs) |
| Opening Inventory Cost | Rs 25 Lakhs |
| First Month Rent | Rs 1.5 Lakhs |
| First Month Equipment Rental | INR 2 Lakhs |
| First Month Insurance | INR 5 Lakhs |
| Base Operating Fees | 15% Sales Per month |
| Advertising Fees | 2% per month |
| Hardware and Software Support | 2 lakhs per month |
| Cash handling System | Rs 30,000 per month. |
| Additional Support Funds for Opening Store | ₹1.5 crore approx. |
| Total Investment | ₹2 crore Approx |
Chick-fil-A Franchise Profit and Margin 2024
To know How much a Chick-fil-A franchise owner makes, then let us tell you that the Chick-fil-A franchise’s Average Revenue through Sales is around 6 Crore.
| Particulars | Revenue/ Profit (INR) |
| Sales | 6 Crore |
| Cost of Goods Sold | 2.5 crore |
| Gross Profit | 4.5 crore (Approx) |
| Labour Cost | 1 Cr |
| Rent and other cost | 50 lakhs |
| Royalty | 1 Crore |
| Other Operating Cost | 70 lakh. |
| Net Profit | Rs 1 Crore 30 Lakhs |
Procedure to Chick-fil-A Franchise 2024 Online Application
If you wish to Apply for Chick-fil-A Franchise in India please follow the steps below;
- Visit the official website of Chick-fil-A Franchise Events or directly click the link here => https://www.chick-fil-a.com/franchise/franchise-events
- On the main webpage, Click on the Button Icon Attend an Info Session.
- When you scroll down the page you can see the webinar events there.
- As a first step, you have to attend those wherein you can directly meet the franchise representatives.
- Second step fill out the “Chick-fil-A franchise application form” with your proper details.
- If the team is satisfied with your Application they will tell you to attend the Interview.
- Once you successfully clear the Interview next step is Training.
- If you’re selected as a franchisee, you’ll need to attend a blended virtual and in-person training that generally lasts three to four weeks. This training doesn’t cost you anything but you’re not paid for it, either. This training covers topics like food safety, restaurant security, how to use the equipment you’ll be renting from Chick-fil-A and more.
NOTE:- Chick-fil-A will handle all of the real estate- and property-related issues, including purchasing a restaurant and outfitting it with everything you need to step right in and get started, including a billing system to charge you rent for everything. You can also Hire a Team the purchase all of your starting inventory from your assigned vendor and buy insurance.
Steps for Chick-fil-A Franchise Licensing Application
- Click on the web page link; https://www.chick-fil-a.com/franchising/licensing/licensing-application
- On the web page, you need to fill in a Licensing Application form.
- Select Operating Venue, Company Name, Contact Name, Email id and Describe yourself in words, and then click on Submit.
- The Franchise Team if they find your Application useful will contact you directly.
Chick-fil-A Franchising and Licensing Opportunities in India
If you want to Apply for the Franchising and Licensing opportunity, you have to fill out the Application by visiting the @chick-fil-a.com official site. You also have to periodically on the Home web page presently which countries the ongoing Live Webinar is being held. Interested investors can also click on the link here https://www.franchisetimes.com/app/Chick-Fil-A-2022.pdf for all Franchise Agreements and information which is necessary to open a Chick-fil-A Franchise in India.
How Much Money do Chick-fil-A Owners Make?
Chick-fil-A makes around an Annual Profit of Rs 1 Crore 30 Lakhs or Close to 2 crore. Since the franchise fee is $10k only the Franchise has to lease other equipment which increases the Overall Cost.
Let us tell you that Chick-fil-A Franchise being an International Brand you have to go through a lot of stringent processes to become a Franchise partner as with other Franchises like McDonald’s or Pizza Hut the franchise fees are on the higher side. It is still a good option provided you plan and put effort into making the Franchise a profitable one.
Chick-fil-A Franchise Business Pros and Cons
Pros:
- Since it is a low-investment franchise $ 10k investment only is very much affordable for experienced entrepreneurs.
- Annual Sales Crosses 6 Crore on an Average per year depending on the location is still a healthy Sales Figure.
- Equipment purchase is not required since it is on a lease basis.
Cons:
- The Parent Company calls the Franchise partners as Operators. Inventory Purchase, Operation structure, and working, are controlled by the Parent Company so not that easy to get the Franchise either. Selection Parameters are strict.
- Closed on Sunday can lead to potential losses.
- You cannot be a Passive investor you need to work full-time and must be actively involved in the day-to-day operation of the business.
- You cannot transfer or sell the business franchise to someone else.
