Skip to comments.Top Six Reasons NOT to Get a Chik-Fil-A Franchise.
Posted on 11/20/2019 10:17:28 AM PST by BDParrish
There is a lot that Chick-fil-A has done right. Earnings per store or AUV's (average unit volumes) are at the top of the QSR50 at 4.4 million. To put that into perspective the average unit volume of a Subway store is a paltry $422,000...
...3. You own nothing and build no equity. This one is huge. In a typical franchise arrangement after you have spent years working hard and building up a business when it's time to retire or move on you can typically sell that business or pass it on to your family. Successful franchises can be worth millions. In the case of Chick-fil-A however you own nothing and because you have no equity in the business you have nothing to sell. Ownership is always retained by corporate - not you. So are you really an owner? Its interesting that on Chick-fil-A's own website they they don't refer to franchisees as owners but as "operators" - and many states have tried to have Chick-fil-A re-classify operators as employees not franchise owners and therefore entitled to employee benefits.
...5. Low earnings. Now Chick-fil-A is quite secretive regarding their facts and figures so information is difficult to come by, but it appears that the general consensus is that owners receive between 5%-7% of the gross. So let's put that in perspective at 5% if your store does 1 million you would recieve $50,000, 2 million you receive $100,000, at 3 million $150,000 and at 4 million you would receive $200,000. So that would put the average store owner Chick-fil-A earnings at $200,000 per year at 5% and $240,000 per year at 6%. Now a quarter million a year is a pretty good salary, but from a franchise ownership perspective only receiving 6% of the gross is quite low.
(Excerpt) Read more at franchise.city ...
This is just silly...
A kid who starts as a fry-guy can save up buy into a franchise as an operator for as little as $5K from what I understand... and the average compensation according to the article is between $200,000-$300,000 a year. (That’s roughly 5-7% of $4.2M)
If they have no investment in the franchise then, they are operators.
Grocery Outlet does the same thing...
We are low carb and a bunless double chicken sandwich is not very tasty.
Doesn’t help that they have apparently caved in to the powerful pervert lobby.
This is fake news. I looked into Chik-Fil-A franchise a while back. There is long list of people that want in on this franchise. Because the buy in is around $10,000 total and you act as the owner of that store. you can make a six figure income on a $10,000 investment is a freaking great deal
IIRC,CFA is very selective as to whom they do business with. For every CFA franchise granted there were something like a bazillion applicants.
The low franchise fee is mentioned. $10,000. This sets it apart from many franchises. This must be considered in evaluating the other numbers that are presented.
Good article.It looks like Chick-Fil-A is almost like buying a stock you can’t sell, but has REALLY high dividends. That’s good for some, not for others. No shortage of folks willing to participate on Chick-Fil-A’s terms.
I knew all along that Chik-fil-a was an instrument of the devil.
The grilled nuggets are a good low carb choice.
Have you tried the grilled chicken products?
That’s one of the few fast food things I’ll eat.
In the “Dirty Keto” phase, I ate a lot of In N Out Protein Style burgers.
But I pretty much stick now to Grass-Finished Beef, which you will never get at any Fast Food place.
I don’t like their product either. It way over salted.
6 reasons not too. Probably 100 reasons TOO get one. Just like the media to only tell half the story.......the bad half of course.
If what is said here is accurate, it sounds more like you are an operator, a manager of the store, rather than a franchise owner.
As with any investment, have eyes wide open going in, ask lots of questions, And gather information to make an informed decision of what you are getting into.
Yes. The chicken was grilled and had a thin sliced tomato and nothing else. Maybe a little mayo but it was difficult to tell Some additional condiments would help.
Fast food places are pretty bad places to go low carb.
Must not be too bad of a deal as an operator. CFA has less than 5% per year operator turnover.
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