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.
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.
Must not be too bad of a deal as an operator. CFA has less than 5% per year operator turnover.
Don’t worry, Cathy Truett himself told my friend who is an operator, that they have 40,000 applicants to select their 100 or so stores each year. Buy in is immaterial, income is unlimited as you split your profits with them. You don’t need to be worth anything it is the long character evaluation you have to pass and have excellent personal financial responsibility. Thousands are begging to get in, stupid article. They prefer people without $3 million in liquid assets like McDonalds so you have an appreciation tonteam with them to build your business. Like I said, stupid article.
The most POSITIVE aspect to this company is the “turnover rate” , for ANY company or store to keep 40% on average of its employees within that industry is unheard of . For that number alone you can see why they want to have the personal who get 200k-300k a year to be on site as opposed to just popping in every once in a while to grab some profit ....think about it . If you want the WHOLE enchilada yourself start a restaurant business and see how tough and time consuming it is laet alone dealing with a general public that will beat and kill for a “chicken sandwich!” (Popeyes of course)
CFA will fail. They just caved in. Their product is not that good.
RE: Top Six Reasons NOT to Get a Chik-Fil-A Franchise.
REASON #1: The name of the franchise is often mis-spelled :)
My first inclination was to respond on the cherry-picked excerpt but after reading the full article, I came away with a different opinion that what I would have said otherwise.
This is a very well-run franchise and yes, it is more accurate to call the franchisees "operators" as opposed to "owners."
However that may be the key to success. By "marrying" the operators to the stores, the stores are going to be much better run. Contrast that to other franchises that allow absentee owners to hire their own operators while they sit on a beach in the Caribbean, allowing the store to go to seed.
The 5-7% of gross sales is a pretty sweet deal for the operator considering the average annual gross at a Chick-Fil-A is $5.3 million. This translates to an average annual income to the operator of around $318,000 a year. Not a bad deal for the operator who only has to pony up $10,000 upfront - with Chick-Fil-A assuming the rest of the up-front costs (well over $2 million).
Chances are however you will never get one. Apparently there are thousands of people in line ahead of you waiting for a franchise.
I'm not a fast food guy - my low-carb keto-style diet pretty much prohibits it. But the few times I've been in a Chick-Fil-A, they were clean, the employees were happy and friendly and I got a real positive vibe. Sort of like how McDonalds used to be when Ray Kroc was still alive.
I looked into franchising many years ago including Dunkin Donuts, Mailboxes Etc (now UPS Store), and Subway. The biggest hangup for me was the massive turnover of the employees and the overall unreliability of the ones you had. That was the biggest complaint that other franchisees had about their businesses. Also, an involved franchisee puts over 100 hours a week into it. It really does become your life unless you have the big bucks to hire people to run it for you.
Glad I never got into it.
Reading comments from the new COO of chick-fil-a, who engineered the new company stance on charitable donations, Chick-fil-a might be the new spokesman for lgbtq causes.
#1 - They are fake “real” Christian business who like all others feel they need to cater to the 1% LGBTQXYZ cult in order to maintain profits! Including the Pope!
Chik-Fil-A is toast.
I have a family member who owns 2 Yum Brands restaurants. Very hands on, preps salads and veg, roasts meats, orders food and supplies, does all paperwork, etc. In the restaurants almost daily and on call 24/7. Hard working, successful, and recognized by Yum Foods for it.