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It costs $10k to ‘own’ a Chick-fil-A franchise

thehustle.co

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Re: It costs $10k to ‘own’ a Chick-fil-A franchise

#41

Post by codegeek »

allovernow wrote: post #30
i_am_proteus wrote: post #22

Earlier quoted context omitted.

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.

Not commenting on franchising, but I'd point out that, for example, loan sharks are "mutually beneficial" and exist across societies, but they can still be quite predatory.

It is a bit unfair to compare loan sharks to business models liek franchises. Loan sharks can lend you money for anything even if you want to go spend it on something useless that doesn't create any value. Starting a Franchise business creates value even if it may not be highly profitable for someone. I wouldn't call Franchise model predatory even though I am personally not a fan of it because I like complete freedom in starting/running a business. Personally, I wouldn't do franchise (I am too much of a free bird to be caged) but calling it predatory is too much.

Re: It costs $10k to ‘own’ a Chick-fil-A franchise

#42

Post by frogpelt »

virtuous_signal wrote: post #32
baron816 wrote: post #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.

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.

Same. I ate at a food court that had a Chick Fil A and the Chick Fil A employee refilled everyone's drinks at our table even though they weren't all bought at Chick Fil A. That's just not normal for fast food workers.

Re: It costs $10k to ‘own’ a Chick-fil-A franchise

#43

Post by dr_dshiv »

allovernow wrote: post #30
i_am_proteus wrote: post #22

Earlier quoted context omitted.

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.

Not commenting on franchising, but I'd point out that, for example, loan sharks are "mutually beneficial" and exist across societies, but they can still be quite predatory.

Loan sharks appeal to the desperate. If you are in a pickle, you NEED a loan, you don't NEED to start a franchise.

Re: It costs $10k to ‘own’ a Chick-fil-A franchise

#44

Post by virtuous_signal »

Forge36 wrote: post #8
Nextgrid wrote: post #2

I 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?

https://www.nytimes.com/2019/06/28/business/subway-franchise...

Apparently too many subways has caused bully by Subway the corporation of franchisees over good locations.

Re: It costs $10k to ‘own’ a Chick-fil-A franchise

#46

Post by ianai »

aryamaan wrote: post #39
giancarlostoro wrote: post #28

Earlier quoted context omitted.

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.

Yes. All it takes is a modestly good marketing strategy and legalese muddying the water enough to not make it completely obvious until it’s too late to back out or too complicated to advise to others.

Re: It costs $10k to ‘own’ a Chick-fil-A franchise

#47

Post by big_chungus »

dudus wrote: post #18
prostheticvamp wrote: post #14

Earlier quoted context omitted.

150-250k a year for a 60hr a week job as the “owner”.

Not sure if you are implying this is not such a great deal but that's what it sounded to me. Maybe from the perspective of a tech person in silicon valley that's not great. But in comparison with pretty much any other job out there this is stellar.

He's also forgetting that a huge number of these are in "normal" America with much lower costs of living and no state income tax. That kind of money goes much farther there.

Re: It costs $10k to ‘own’ a Chick-fil-A franchise

#48

Post by dkarras »

aryamaan wrote: post #39
giancarlostoro wrote: post #28

Earlier quoted context omitted.

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.

I can't really follow your logic there. In my mind for something to be predatory it should be your pretty much only option while promising you the world, an end to your tough situation. If you have a choice and you end up worse off, you just got into a bad deal is all. The deal is fair because both parties thought it was a good deal, no one was forced or desperate. There was no scam involved either (everyone got what they were promised). I can't see how that can be predatory, or even unfair.

Re: It costs $10k to ‘own’ a Chick-fil-A franchise

#49

Post by manigandham »

prostheticvamp wrote: post #14
flatiron wrote: post #12

Earlier 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”.

That's fantastic income for anyone once you get past the highly skewed Silicon Valley bubble.

Most people work far more for less and would love to have their own business with this much potential earnings and low startup cost.

Re: It costs $10k to ‘own’ a Chick-fil-A franchise

#50

Post by dantheman »

xwowsersx wrote: post #45

> At $4.2m per store, Chick-fil-A’s average revenue is the highest of any fast-food chain in America, dwarfing both direct competitors (KFC; $1.2m) and bigger brands (McDonald’s; $2.8m) Wow, I did not know this. Why is that?

You can only own one store. So they're always owner managed.
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