I Applied for a Chick-fil-A Franchise, and You Should Too!

In keeping with the theme of our platform “to elevate the wealth-being of every independent consultants,” I would like to share an opportunity I took it upon myself to take action. As an entrepreneur and opportunity seeker, I always keep an eye open for low risk / high reward opportunity in everything I read and do. Richdad said something has high reward does not necessarily means it has high risk. I totally believe that to be a statement of fact!

Yesterday, I came across an article about Chick-fil-A franchise opportunity that sounded too good to be truth. For $10,000 franchise fee, you can own and run your very own fast food restaurant. Chick-fil-A is not a little hotdog stand. In fact, it has the highest revenue grossing per store in the fast food restaurant industry. Best part, no restaurant experience is needed, and your chances of landing a Chick-fil-A franchise is infinitely higher than winning the $1.5 billion powerball lottery. Training is included as well! What a sweet deal.

Each year more than 20,000 applicants apply for a Chick-fil-A franchise, and only 75 to 80 new franchised operators are selected. Why Chick-fil-A franchise is so cheap to start when it could cost as much as $2.5 million in fee alone to open a McDonald or Taco Bell? I have to conclude, they must unquestionably believed in their brand, their system, and you to offer such a sweet deal. Before you think that this is all free. It is not. You don’t get something for nothing as Napoleon Hill had pointed out in his book, “Think and Grow Rich” . Unlike most other franchises which required you to invest hundreds of thousands or millions of dollars to open a store, Chick-fil-A will paid for the initial investment and have you pay them back by leasing its store and everything else that goes with it. Chick-fil-A takes 15% of gross sales as franchise loyalty fee, plus 50% of earnings after expenses.

Lets do some quick math/projections:

According to QSR magazine, Chick-fil-A’s 2014 average per store sales was $3 million / year.

1, Loyalty fee: $3,000,000 x 15% = $450,000 [15% of gross sales]
2. Net Profit: $3,000,000 x 10% = $300,000 [10% of gross sales? too high? too low?]
3. 50/50 Split: $300,000 / 2 = $150,000
4. Total Franchisee Earnings: $150,000 net profit + $100,000 salary = $250,000 / year

I wish someone from the inside can verify my numbers. As I put these numbers together, I can see that increasing the minimum wages, which would in turn push up wages for everyone in the fast food restaurant industry to retain the same caliber of employees would greatly impact a franchisee’s bottom line…and there is not much margin there at $250,000 / year.

 

Update

I got an invitation from Chick-fil-A to Complete Franchise Application. I am excited! Here is the email.

Philip, 

We appreciate your interest in Chick-fil-A’s Operator opportunity.  After reviewing your Expression of Interest, we would like to offer you access to a secure site where you will be able to complete the Operator Application.  We recommend that you copy and paste your essay responses from a separate document to avoid losing your information.  Due to the secure site having a timeout function of 90 minutes you should periodically save and return so that your information will not be lost.  You may return as often as needed until you submit the application.  You will need to access the application through a new URL link that is emailed to you after each time you save your application.  

In order to ensure delivery of any future communication regarding this opportunity, please add @agents.icims.com to your trusted senders.

In addition, you may want to have the following information available prior to starting your application:
       – Personal Financial Information
       – High School GPA
       – College and/or Graduate School GPA
       – Employment History Information (Salary and Employment Dates)
       – Military Service Information (if applicable)

Please be advised that the URL link you are provided will only be accessible for 60 days from receipt of this email.    
At the end of this email you will find a link to the online application, as well as your Login Name you established at the time of expressing interest.  Please be advised that completion of the application does not guarantee your selection as an Operator. In our selection process, we look for individuals with a strong entrepreneurial spirit, a proven track record in business leadership, a strong sales and marketing drive, and a geographical fit with an available location.  First priority is given to internal candidates, such as current Chick-fil-A Operators who desire an additional location or the opportunity to operate a different Chick-fil-A restaurant.  We then consider external candidates.

Please allow approximately eight to ten weeks for review of your application, after which we will advise you of our decision regarding your candidacy.  Again, thank you for your interest in Chick-fil-A.

Sincerely, 

Franchisee Selection | Chick-fil-A, Inc.
5200 Buffington Road | Atlanta, GA 30349

13 Comments

  • Ashlee

    Reply Reply August 22, 2016

    I am curious. How has it gone since you completed your application?

    • Philip

      Reply Reply November 1, 2016

      HI Ashlee,
      Sorry took me so long to reply. 🙂
      I decided not to pursue Chick-file-A, and instead, I am growing my revenue through my IT consulting and recruiting business, and use the revenue to invest in real estate for cashflow. It is a long process, but I have started my journey and I hope you had too.

      Good luck, my friend.

      • Jo

        Reply Reply March 14, 2018

        Hi Philip, thank you for writing this article. It has helped me a lot.

        I am very interested in opening their franchise but have so little information.

        Could you let me know why you chose not to continue with CFA? Is it because you get a lot less income than expected or something else?

        If you prefer speaking in private, please email me.

        Once again thank you so much.

        Hope everything goes well for you!

      • Mr. T

        Reply Reply October 29, 2019

        Hey Philip. When I first learned about the Chick fil A “operator” opportunity decided to Google for more info. Thank you for sharing your experience of what is required in taking the first steps. The info was most helpful. I desire to return to my entrepreneur roots after being an employee for 20 years. So how is your business and real estate venture going? October 2019

        • Philip

          Reply Reply October 29, 2019

          Hi Mr. T – I am glad you found my article useful. Most of my income are earn income, meaning that I trade my time for money. So I don’t have much of a business yet. I love investing in real estate though. I have learned so much. I tried to invest my money with various “professionals” but the result is mixed.

          I love investing on my own because I learn so much. I am not a real estate pro by any mean. But it seems real estate investing is a long term game. I tend to attracted to newer properties with the goal of holding on to it as long term rentals. Hoping the cash flow will cover for all the expenses. And, long term…the tenants will help me payoff my mortgage. I have very modest goals. First to protect my initial investment, and second get my loan paid off. It is icing on the cake if the property appreciate, and it has. But it could drop and go back to my purchase price or even lower on the next economy cycle. It’s a 15-20 years endeavor on each property. Hopefully, one day my kids can reap the rewards. That’s the great thing about America. There is always hopes and dreams as long as you don’t give up.

  • Yun

    Reply Reply April 10, 2017

    Hi Philip
    I have submitted my expression of Interest to Chick fil a website. How likely will i get to the next step? Thank you

    • Philip

      Reply Reply October 29, 2019

      Hi Yun – very unlikely. Sorry.

  • Webster Sam

    Reply Reply September 20, 2017

    Hello I came across this looking to start a business. I am also in the IT field. Please view my LinkedIn profile. Webster Sam Fl

    • Philip

      Reply Reply October 29, 2019

      Hi Sam, congratulation on taking the first step to become an entrepreneur!!

  • Sarah

    Reply Reply September 12, 2018

    Hi Phillip! I am wondering how the it consulting is going?

  • Davan

    Reply Reply June 13, 2019

    Hey Phillip,
    Some insider info in regards to your numbers since you asked. I worked at CFA for over 12 years. As a Marketing Director and also Operations Director. I handled all the financial information for our stores. So here goes it:

    The original franchise fee was $5k until after 2012. They raised that fee after. Also on the number P&L side. CFA reports everything in terms of NET (without tax or after tax) so CFA takes 15% of net sales straight from the top. They also get 6% of sales to pay for rent/lease in perpetuity. In addition they get 50% of net profit.

    The operator gets a base pay of $1,500 per month and 50% of the profit minus the $1,500.

    CFA owns all the equipment, building, and physical assets of the location. The operator is a 1099 contracted licensed to operate the business under the CFA name. in fact the legal business name for each location is “Operator’s Name d/b/a Chick-fil-A [location]”

    Oh also, CFA gets to choose your location so you have to be willing to relocate, you can’t just buy or inherit/will “your” store. CFA maintains full control. Smart for them but wasn’t my cup of tea. Hope that helps!

    • Philip

      Reply Reply October 29, 2019

      Davan, thank you so much for sharing. Much appreciated!!

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