---
title: "Why Is It So Cheap To Invest in a Chick-fil-A?"
url: https://burnaze.com/article/7232b177-cd8b-42aa-a0b1-61e325ece681
source: "1851 Franchise"
original_url: https://1851franchise.com/why-is-it-so-cheap-to-invest-in-a-chick-fil-a-2721997
category: "Chicken"
industry: "Restaurants"
segment: "Chicken"
published: 2023-05-30T15:10:01.000Z
modified: 2026-11-01T01:12:55.636Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/c6fe595d4ec0080494a268c458f0d77b1462.jpg
---

# Why Is It So Cheap To Invest in a Chick-fil-A?

**TL;DR:** Chick-fil-A has a unique franchise model with a low initial investment of $10,000, but franchisees pay 15% in royalties and 50% of marketing fees. The brand's systemwide sales were nearly $19 billion in the previous year, with locations averaging over $8.5 million in sales per unit.

*originally published in 1851 Franchise on 2023-05-30. [Read the original](https://1851franchise.com/why-is-it-so-cheap-to-invest-in-a-chick-fil-a-2721997).*

## Story

Chick-fil-A is one of the most sought-after concepts in the franchise space. The franchisor has certainly played into this demand with its exclusive but incredibly attractive franchise policies.

Franchisees can invest for just $10,000, a fraction of the price tag that accompanies many other big-name quick service restaurant (QSR) concepts. This franchise fee and “ a holistic commitment to own and operate the business in a hands-on manner ” is all a prospective owner needs to commit. Chick-fil-A covers build-out costs, real estate and equipment.

The catch is that this leaves the franchisees in more of an operator role than one of an owner. Chick-fil-A operators pay 15% in royalties, and 50% of profits go to corporate . Further, because the franchisee did not fund the build-out, they do not own the restaurant and therefore cannot sell it should they decide to transition out of the business.

Clearly, though, these contingencies haven’t slowed down interested franchisees. Chick-fil-A receives tens of thousands of inquiries annually, and it tends to accept about 1% of applicants.

In the franchise world, a total initial investment of $10,000 is pretty low. Is the Chick-fil-A franchise a “get what you pay for” situation? Not really.

Of course, some franchisees go into business with hopes of building up an empire and a strong business that can be passed down to family members. Though this isn’t the case with Chick-fil-A, as operators cannot sell their locations, direct ownership of a business certainly is not the only path to generational wealth.

According to the brand’s most recent Franchise Disclosure Document (FDD), its U.S. systemwide sales were nearly $19 billion in the previous year, a notable increase from 2021’s $16.6 billion, 2020’s $13.7 billion and 2019’s $12.2 billion.

Chick-fil-A locations with a drive-thru averaged over $8.5 million in sales per unit, and the highest-performing location secured nearly $17 million in revenue. Yes, these stats are lowered significantly when the corporate cut is taken out, but a multi-million dollar operation is nothing to sneeze at.

These revenue representations are reflective of so much more than just customers’ motivation to buy chicken. A Chick-fil-A franchisee’s initial investment brings them into the notorious network of business owners, and they unlock access to the appeal of the Chick-fil-A name. The customary “My pleasure,” freakishly efficient multi-lane drive-thrus, innovative marketing and core menu of chicken-based entrees all serve as key differentiators for the concept, drawing even more customers in.

To access all of these well-established practices and its reputation, $10,000 may not seem too bad … even if you do have to fork over half of your profits. After all is said and done, it is reported that Chick-fil-A operators do take home a decent salary. Mashed reports an average of around $200,000 annually, while reported salaries on Glassdoor average $82,065 annually, with the top of the range sitting at about $138,000. For owner-operators who have a true passion for people, service and even the brand itself, $10,000 can unlock an opportunity that is rewarding in more ways than one.

## Entities

- 1851 Franchise (publication)
- QSR (sector)
- franchise model (topic)
- Chick-fil-A (company)
- systemwide sales (topic)
- royalty fees (topic)
- Glassdoor (company)
- low investment (topic)
- marketing fees (topic)
- Mashed (company)

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Originally reported by 1851 Franchise (https://1851franchise.com/why-is-it-so-cheap-to-invest-in-a-chick-fil-a-2721997). Summarized by Burnaze (https://burnaze.com/article/7232b177-cd8b-42aa-a0b1-61e325ece681).