It costs $10k to ‘own’ a Chick-fil-A franchise
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It costs $10k to ‘own’ a Chick-fil-A franchise
1–10 of 233 posts
Re: It costs $10k to ‘own’ a Chick-fil-A franchise
#2I always found franchise initial startup costs to be predatory, as they get paid either way regardless of whether the franchisee actually succeeds. In my opinion they should be abolished and franchisors should only rely on royalties, so that they have an incentive to help the franchisee succeed if they want to make money.
Re: It costs $10k to ‘own’ a Chick-fil-A franchise
#3I always found franchise initial startup costs to be predatory, as they get paid either way regardless of whether the franchisee actually succeeds. In my opinion they should be abolished and franchisors should only rely on royalties, so that they have an incentive to help the franchisee succeed if they want to make money.
Who should abolish them?
Re: It costs $10k to ‘own’ a Chick-fil-A franchise
#4I always found franchise initial startup costs to be predatory, as they get paid either way regardless of whether the franchisee actually succeeds. In my opinion they should be abolished and franchisors should only rely on royalties, so that they have an incentive to help the franchisee succeed if they want to make money.
Given how much it costs to open the restaurant itself, it seems like the franchise fee (for most franchises) is an odd thing to focus on. If I'm going to be spending $1.6M-$2.3M just to build a Taco Bell location, I'm honestly not going to be too concerned about the $30k franchise fee I need to pay corporate up-front. It's a drop in the bucket.
Regardless, corporate is always incentivized to help their franchisees succeed; they wouldn't really have a business without them, and of course they want their cut of sales/profits to be a higher absolute value.
Re: It costs $10k to ‘own’ a Chick-fil-A franchise
#5I always found franchise initial startup costs to be predatory, as they get paid either way regardless of whether the franchisee actually succeeds. In my opinion they should be abolished and franchisors should only rely on royalties, so that they have an incentive to help the franchisee succeed if they want to make money.
Who should abolish them?
Are you being facetious?
Re: It costs $10k to ‘own’ a Chick-fil-A franchise
#6I always found franchise initial startup costs to be predatory, as they get paid either way regardless of whether the franchisee actually succeeds. In my opinion they should be abolished and franchisors should only rely on royalties, so that they have an incentive to help the franchisee succeed if they want to make money.
I actually don’t see it that way. Often a franchise will vet the owner, provide setup assistance, provide location recommendations, train employees, etc. That doesn’t occur in all cases, but arguably most franchises do this and it’s part of the initial fees.
Re: It costs $10k to ‘own’ a Chick-fil-A franchise
#7I always found franchise initial startup costs to be predatory, as they get paid either way regardless of whether the franchisee actually succeeds. In my opinion they should be abolished and franchisors should only rely on royalties, so that they have an incentive to help the franchisee succeed if they want to make money.
If you dont want to pay you join a different franchise or start your own restaurant. I fail to see the issue. Nobodys putting a gun to your head to open up a CFA restaurant.
Re: It costs $10k to ‘own’ a Chick-fil-A franchise
#8I always found franchise initial startup costs to be predatory, as they get paid either way regardless of whether the franchisee actually succeeds. In my opinion they should be abolished and franchisors should only rely on royalties, so that they have an incentive to help the franchisee succeed if they want to make money.
I recall subway had "low" startup costs and it resulted in too many locations.
What incentivizes the new location to do due-diligence in picking a good location? If this is placed into the chain owner: What's the difference between a franchise vs single owner?
Re: It costs $10k to ‘own’ a Chick-fil-A franchise
#9> With a 0.13% acceptance rate, it’s harder to become a Chick-fil-A franchisee than it is to...get a job at Google (0.23%)
I think I'd rather just get a job at Google.
Re: It costs $10k to ‘own’ a Chick-fil-A franchise
#10Misleading headline? It costs $10k only compared to hundreds of thousands with other franchises. CFA covers all initial costs and simply takes much more in profit sharing than others.