The Chick-fil-A franchise requires a total investment of $427K – $2.34M and operates 2,629 units in the QSR category. This report analyzes the full Franchise Disclosure Document including unit economics, fee structure, growth trends, and risk indicators to help you evaluate the cost of investing in Chick-fil-A.
Critical issues identified from FDD analysis that warrant serious consideration before investing.
Composite quality score based on growth, stability, efficiency, fees, transparency, and system size.
Estimated initial investment range as disclosed in the most recent FDD.
| Line Item | Low Estimate | High Estimate |
|---|---|---|
| Franchise Fee | $10,000 | $10,000 |
| Inventory | $22,000 | $84,000 |
| Equipment | $750 | $5,000 |
| Real Estate | $2,725 | $96,285 |
| Insurance | $260 | $10,240 |
| Working Capital | $391,000 | $2,134,000 |
| Total | $426,735 | $2,339,525 |
Ongoing fees as disclosed in the FDD.
| Fee Type | Rate | Type | Basis | Frequency |
|---|---|---|---|---|
| Advertising contribution | N/A | PCT | Gross Receipts | monthly |
| Advertising Support and Services Fee | $100 | VARIABLE | Per hour of service; current in-house blended hourly rate | as_incurred |
| Additional Franchise Fee | $5,000 | FIXED | Per additional Chick-fil-A Restaurant business | one_time |
| Business Services Fee | $300 | FIXED | Monthly | monthly |
| Rent (Traditional Unit) | N/A | VARIABLE | Monthly rent including percentage rent where applicable | monthly |
| Occupancy Charge (Captive Venue Unit) | N/A | VARIABLE | Percentage of Gross Receipts | monthly |
| Use/Occupancy Charge (Delivery Kitchen Unit) | N/A | VARIABLE | Percentage of Gross Receipts | monthly |
| Food Truck Usage Fee (Food Truck Subleased from Chick-fil-A) | N/A | VARIABLE | Monthly | monthly |
| Food Truck Fee (Food Truck Leased from Vendor) | N/A | VARIABLE | One-time or monthly depending on agreement structure | one_time |
| Food Truck Insurance Fee | N/A | VARIABLE | Monthly | monthly |
| Insurance | N/A | VARIABLE | Monthly premiums | monthly |
| Equipment Rental | N/A | VARIABLE | Monthly, based on fair market rental value and location type | monthly |
| Hardware and Software Support; High-Speed Internet Access | N/A | VARIABLE | Annually | annually |
| Fines – Minimum Standards and Procedures | N/A | VARIABLE | As incurred | as_incurred |
| Indemnification | N/A | VARIABLE | As incurred | as_incurred |
| Operating Service Fees | N/A | VARIABLE | Complex formula based on Operating Profit and Gross Receipts | monthly |
| Credit Card, Gift Card and related fees | N/A | VARIABLE | Per transaction, varies by vendor and card type | as_incurred |
| Highway Signage | N/A | VARIABLE | Actual cost plus annual expense | as_incurred |
| Interest on Late Payments | 1.25% | PCT | Per month on overdue amounts | monthly |
| Cash Handling System Services | N/A | VARIABLE | Monthly | monthly |
| Reimbursement of Cost of Performance | N/A | VARIABLE | Actual costs and expenses | as_incurred |
| Holdover Liquidated Damages | N/A | VARIABLE | Double the base rent and percentage rent | as_incurred |
Financial performance data as disclosed in FDD Item 19.
| Metric | Value | Unit | Cohort | Period |
|---|---|---|---|---|
| Median Annual Sales Volume | $3,386,837 | USD | Non-Captive Venue Mall Restaurants - Units Open >1yr | 2024 |
| Average Sales Volume | $4,516,855 | USD | Non-Captive Venue Mall Restaurants - Units Open >1yr | 2024 |
| Lowest Annual Sales Volume | $1,219,834 | USD | Non-Captive Venue Mall Restaurants - Units Open >1yr | 2024 |
| Highest Annual Sales Volume | $18,918,134 | USD | Non-Captive Venue Mall Restaurants - Units Open >1yr | 2024 |
| Median Annual Sales Volume | $9,226,669 | USD | Non-Captive Venue Non-Mall Restaurants - Units Open >1yr | 2024 |
| Average Sales Volume | $9,317,007 | USD | Non-Captive Venue Non-Mall Restaurants - Units Open >1yr | 2024 |
| Lowest Annual Sales Volume | $1,878,888 | USD | Non-Captive Venue Non-Mall Restaurants - Units Open >1yr | 2024 |
| Highest Annual Sales Volume | $19,318,796 | USD | Non-Captive Venue Non-Mall Restaurants - Units Open >1yr | 2024 |
| Median Annual Sales Volume | $3,048,803 | USD | Delivery Kitchens - Units Open >1yr | 2024 |
| Average Sales Volume | $3,526,342 | USD | Delivery Kitchens - Units Open >1yr | 2024 |
| Lowest Annual Sales Volume | $2,786,286 | USD | Delivery Kitchens - Units Open >1yr | 2024 |
| Highest Annual Sales Volume | $5,221,575 | USD | Delivery Kitchens - Units Open >1yr | 2024 |
Estimated using industry benchmarks for the QSR category. Actual costs vary significantly by location, operator, and market.
| Line Item | Amount | % of Revenue |
|---|---|---|
| Gross Revenue | $3,048,803 | 100% |
| COGS | $-914,641 | 30% |
| Labor | $-853,665 | 28% |
| Occupancy | $-304,880 | 10% |
| Marketing | $-121,952 | 4% |
| Other Costs | $-243,904 | 8% |
| Royalty Fee (franchisor) | $-0 | 0% |
| Ad Fund Fee (franchisor) | $-0 | 0% |
| Owner's Profit | $609,761 | 20.0% |
Model your personal financial scenario by adjusting the assumptions below.
Automated risk indicators based on FDD data analysis.
Franchise unit trajectory based on FDD Item 20 data.
| Year | Start | Opened | Closed | Transferred | End | Closure Rate | Net Growth |
|---|---|---|---|---|---|---|---|
| 2022 | 2230 | +213 | -91 | 0 | 2338 | 4.1% | +108 |
| 2023 | 2331 | +255 | -84 | 0 | 2494 | 3.6% | +163 |
| 2024 | 2494 | +243 | -102 | 0 | 2629 | 4.1% | +135 |
How Chick-fil-A compares to peer brands in the QSR category.
Ratio = Investment midpoint ÷ median annual revenue. Lower is better. A 0.5x ratio means the initial investment equals half of one year's gross revenue. Does not account for operating costs, margins, or time value of money.
| Brand | Total Units | Investment Range | Median Revenue | Royalty | Inv/Rev Ratio |
|---|---|---|---|---|---|
| Subway | 19502 | $3K – $630K | No Item 19 | -- | -- |
| McDonald's | 12772 | $1.47M – $2.64M | No Item 19 | 5.0% | -- |
| Dunkin' | 8499 | $527K – $1.83M | $1.43M | -- | 0.8x |
| Domino's Pizza | 7043 | -- | $24K | 5.5% | -- |
| Burger King | 6701 | -- | No Item 19 | -- | -- |
| Wendy's | 5552 | $393K – $2.99M | $2.23M | 4.0% | 0.8x |
| Little Caesars | 3705 | $446K – $1.82M | No Item 19 | 6.0% | -- |
| KFC | 3558 | $135K – $3.77M | $1.27M | 5.0% | 1.5x |
| Papa John's | 3291 | $261K – $853K | No Item 19 | 5.0% | -- |
| Popeyes Louisiana Kitchen | 3177 | $505K – $3.92M | No Item 19 | 5.0% | -- |
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