Why it only costs $10k to ‘own’ a Chick-fil-A franchise

In America, the majority of fast-food restaurants aren’t owned by the corporation itself, but by franchisees —  individuals who pay for th...

In America, the majority of fast-food restaurants aren’t owned by the corporation itself, but by franchisees —  individuals who pay for the right to use a brand name.

Instead of buying and developing new properties with their own money, most national chains (franchisors) will allow a party or individual (franchisee) to front the development bill and take a stab at ownership in exchange for a cut of the sales.

Many people dream of buying a fast-food franchise of their own, but few can afford it.

All told, it might cost a franchisee upwards of $2m to develop, build, and buy the right to open a McDonald’s or a KFC. Many chains won’t even look at your application unless you have a net worth of $1m and $500k in readily spendable cash sitting around.

But there’s an exception to this: A franchise at Chick-fil-A — one of America’s oldest, largest, and most profitable chains — can be yours for just $10k.

.........That is, if you can land the job.

A lower acceptance rate than Stanford


According to Chick-fil-A, 60k people apply to be operators every year — and only ~80 are selected.

With a 0.13% acceptance rate, it’s harder to become a Chick-fil-A franchisee than it is to get into Stanford University (4.8%), get a job at Google (0.23%), or even become a special agent for the Secret Service (1%).

read full story here: https://thehustle.co/why-it-only-costs-10k-to-own-a-chick-fil-a-franchise/