What's avg annual revenue for A chick fil a?
$4.2 million.
It costs $10k to ‘own’ a Chick-fil-A franchise
31–40 of 233 posts
Re: It costs $10k to ‘own’ a Chick-fil-A franchise
#32> 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.
I think either of these acceptance rates are computed by casting the widest net possible. Nevertheless I have to believe Chick-Fil-A has a very rigorous process for hiring managers, who in turn know how to hire good workers; I have never once encountered the typical surly fast food worker at any of their restaurants.
Re: It costs $10k to ‘own’ a Chick-fil-A franchise
#33I 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?
The other costs are plenty of incentive to choose a location carefully.
Even for a Subway. Earning back $350,000 takes a lot of sandwiches.
Re: It costs $10k to ‘own’ a Chick-fil-A franchise
#34Earlier quoted context omitted.
They said $150-$250k a year for the owner so you would get paid better too.
150-250k a year for a 60hr a week job as the “owner”.
Yes but at some point, if you have the right brains and vision, you can slowly replace yourself in the business, even if not completely. In a job no matter where, you stop working, your income goes to 0. Period.
Re: It costs $10k to ‘own’ a Chick-fil-A franchise
#35I 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.
And yet people choose to buy franchises rather than start their own independent shops. Proliferation of franchises indicates that this is mutually beneficial. Also, bear in mind that the franchise's corporate brand reputationsuffers when a franchise fails, so there's inherently some risk sharing.
>people choose to buy franchises rather than start their own independent shops //
[Agreeing] There are massive costs (relatively speaking) for an independent involved in just learning/optimising the supply chain. With a franchise you, presumably, can skip this which gives a huge head start.
Also if it's a brand chain then you have the benefit of brand level advertising (which works at a different psychological level to shop/activity/product advertising) which should be more efficient per "lead".
Re: It costs $10k to ‘own’ a Chick-fil-A franchise
#36I 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.
You are paying for the brand, strategy, training and lot of risk factors that are mitigated due to the franchise setup. Yes, it is still risky but starting an entire business from scratch is a lot riskier. That's why you pay.
Re: It costs $10k to ‘own’ a Chick-fil-A franchise
#37I was in Vegas a few months ago and saw construction signs for a new Chick fil A at Planet Hollywood on the Strip. Can only imagine how profitable that location would be.
Re: It costs $10k to ‘own’ a Chick-fil-A franchise
#38My biggest takeaway from this is that Wendy's standards are surprisingly high. Why do they require a net worth of $5 million when most seem to top out at $1 million? Is it a way of ensuring a lower closure rate as people with $5 million net worth are less likely to go bankrupt and shut down the restaurant?
Re: It costs $10k to ‘own’ a Chick-fil-A franchise
#39Earlier quoted context omitted.
It's possible to be predatory without holding people at gunpoint.
Again, nobody is telling you to join them if you dont want to though. You can make a competing restaurant yourself.
A predatory option can be present with a choice to join it. People can choose to not take such a deal but those who did, they got the worse of the deal by large margins.
Even if they did choose that option, doesn't mean that deal was fair to them.
Re: It costs $10k to ‘own’ a Chick-fil-A franchise
#40Are there any viable franchises that are hands off? Like you put in the investment, hire manager(s) and earn revenue as the owner without having to invest a lot of time on the day to day operation?