Why it only costs $10k to ‘own’ a Chick-fil-A franchise

The Hustle (01/19/2020)
  • In America, most fast-food restaurants are independent franchises whose owners pay fees to use the brand name.
  • While top franchises (eg McDonald’s, KFC) cost up to $2 million to develop and require a minimum net worth of $1 million, a Chick-fil-A only costs $10K.
  • The difference is that Chick-fil-A finances and develops each franchise and takes a much larger percentage of sales and profits.
  • While most restaurants take 4-8% of each franchises’ total sales, Chick-fil-A takes 15% of sales and 50% of profits.