The Chick-fil-A Franchise – A Unique Business Opportunity
This chicken franchise is a very consistent and successful franchise system. This privately-held food retail chain makes billions in countrywide sales every year over more than a thousand franchised stores in the US. The founder of the Company, Truett Cathy, attributes the success of the company to the more than 1000 franchisees and hundreds of employees who are unusually dedicated in the industry which has over the years earned a reputation for grumpy operators and high turnovers among the workers who are hired on an hourly basis. As a matter of fact, Chick fil A has a very low turnover rate of 5% per year for the operators and 60% for the workers. This is extremely low compared with that of the industry which is 107%. The food franchise focuses on acquiring and bringing in franchisees who seek lifetime commitments to the company.
The company also has a company mandate and corporate mission to glorify God with a culture of closing on Sundays in order to allow the franchise operators to go to church and have some quality time with their families. They have an approach where they seek to balance work with life and this has been proven to work well so far.
What Makes Chick fil A So Interesting and Unique As a Business?
Well, of all the franchises that you have ever heard of or even considered investing in, this is most probably the cheapest in terms of the initial investment and upfront fee. The upfront franchise fee is only $5,000 meaning that it is affordable for most people regardless of their financial status. This provides a low-barrier franchising option for people who seek to start running a business with little initial cost. This is yet another benefit of buying into a franchise. All the groundwork has been done so you do not have to spend your time and money starting a business from scratch.
From a business model point of view, this fast food chicken franchise is also unique. The company pays for the land, equipment and construction needed to get the business up and running. They will then rent all this to the franchisee for 15% of the restaurants sales and half of the pre-tax profit remaining. Operators typically bring home about $100,000 annually from a single outlet and are discouraged from running more than a handful of restaurants.
The selection process for franchisees is also another thing that makes this franchise very interesting. The founder is very selective in terms of who to pick as an operator. Most of the time, he selects married workers with a Christian background. He encourages the operators to take relation-building retreats with their families and even conducts interviews on the family members of prospective operators who are looking to join the franchise.
This fast food franchise also runs a number of sponsored events such as the Chick-Fil-A classic basketball tournament, Chick-Fil-A bowl, the Chick-Fil-A kickoff game and the Chick-Fil-A Kyle Petty charity ride across America.
How to Buy a Chick-Fil-A Franchise
As you may have realized, being a part of a fast-food restaurant franchise can provide you with an opportunity to expand not only your business skills, but management skills as well. You also get to work with a brand that has been already established and a proven business model that is guaranteed to bring you a steady income as long as you are willing to do the hard work. The Chick-Fil-A franchise is one such franchise with their signature product which is a boneless chicken breast sandwich. The initial cost is also very low as compared to most other typical franchises. Competition for their franchisees is also very rigorous given the stringent requirement needed in order to qualify. In case you are looking to buy into this chicken franchise, you need to follow a number of steps which are clearly outlined in the next few paragraphs.
For a start, you need to do a little bit of research about the company so that you are completely familiar about its operations and philosophy. It is important that from the very beginning you evaluate your reasons for joining the franchise and ensure that these reasons are in accordance with the company’s requirements of its operators. You should also be mentally prepared to be a full-time hands-on operator. Throughout the application process, you are required to be free of any other forms of business ventures and it is always wise to have the $5,000 handy just in case you get selected.
Next, make sure that you have visited the company’s website and read all the FAQ’s for prospective applicants. Once you are through with these, you can fill out the expression of interest form online and submit it. Within 3 to 4 weeks, you should be hearing from the company and once selected as a candidate, you get to be sent a formal application.
Having successfully gone through the previous steps, you need to fill out the official operator application and submit it to the company with an initial application fee of $5,000. One interesting fact to keep in mind at this stage is that more than 20,000 franchise ownership applications are received each year. Of all these, only 65 to 70 are selected. New operators are then notified and are needed to specify which type of store they will be running at the location specified by the company. In short, the operator gets the rights to operate a Chick fil A enterprise at only a fee of $5,000 and a guaranteed steady annual income.
Once you are done with the previous steps, you are just about ready to get started running your own restaurant. However, you need to complete a training program which usually runs for a number of weeks. Once the training program is complete, you are ripe and ready to begin your journey as a franchise operator for Chick-fil-A.
In summary, the Chick-fil-A franchise is based on a strong foundation and proven business model which ensures that everyone goes home happy at the end of the day. The low startup cost also makes it very affordable for most people looking to buy a franchise.