It costs nearly nothing to open a Chick-fil-A — but there’s a catch

chick fil aMelia Robinson/Business Insider


Chick-fil-A franchisees pay just $10,000 to open a new restaurant. Chick-fil-A pays for all startup costs — including real estate, restaurant construction, and equipment — and leases everything to its franchisees for an ongoing fee equal to 15% of sales plus 50% of pretax profit remaining. The company prohibits most of its franchisees from opening multiple restaurants, which can limit franchisees’ potential profits. Chick-fil-A gets more than 20,000 inquiries from franchisee candidates every year. From those candidates, Chick-fil-A selects between 75 to 80 new franchisees annually.

Chick-fil-A is among the most successful fast-food chains in the US, and it’s also one of the cheapest to open.

The company’s sales grew by $1 billion to $9 billion in 2017, making it larger than Chipotle and KFC combined.See the rest of the story at Business Insider

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