In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:

Section I – Estimated initial investment (franchise costs) for a Chick-fil-A franchise, based on Item 7 of the company’s 2024 FDD

Section II – Initial franchise fee, royalty fee, and marketing fee for a Chick-fil-A franchise, based on Items 5 and 6 of the company’s 2024 FDD

Section III – Number of franchised and company-owned Chick-fil-A outlets at the start of the year and the end of the year for 2021, 2022, and 2023, based on Item 20 of the company’s 2024 FDD

Section IV – News updates on the Chick-fil-A franchise opportunity

Section V – Presentation and analysis of Chick-fil-A’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2024 FDD, including information on the:

• 2023 average, median, high, and low sales for the 188 domestic non-captive venue franchised Operator Chick-fil-A Restaurants located in malls that had been open and operated by Operators for at least one full calendar year as of December 31, 2023

• percentage of domestic non-captive venue franchised Operator Chick-fil-A Restaurants located in malls that had been open and operated by Operators for at least one full calendar year as of December 31, 2023 and generated annual sales of less than $2,750,000; between $2,750,000 and $4,300,000; and over $4,300,000, respectively

• 2023 average, median, high, and low sales for the 2,049 domestic non-captive venue franchised Operator Chick-fil-A Restaurants located in non-malls that had been open and operated by Operators for at least one full calendar year as of December 31, 2023

• percentage of domestic non-captive venue franchised Operator Chick-fil-A Restaurants located in non-malls that had been open and operated by Operators for at least one full calendar year as of December 31, 2023 and generated annual sales of less than $8,300,000; between $8,300,000 and $10,235,000; and over $10,235,000, respectively

Section VI – Key ratios, comparables, computations, and analyses for the Chick-fil-A franchise opportunity (exclusive content for Platinum subscribers)

Section I – Chick-fil-A Franchise Costs

• Initial Franchise Fee:  $10,000
• Opening Inventory:  $15,050 to $121,210
• First Month’s Rental of Equipment:  $750 to $5,000
• First Month’s Lease/Sublease of Premises:  $2,605 to $95,180
• First Month’s Insurance Expense:  $240 to $10,700
• Additional Funds:  $415,598 to $2,096,696
• Total Estimated Chick-fil-A Franchise Costs:  $444,243 to $2,338,786

Section II – Chick-fil-A’s Initial Franchise Fee, Royalty Fee, and Marketing Fee

• Initial Franchise Fee:  $10,000

• Additional Franchise Fee:  $5,000 for each additional Chick-fil-A Restaurant business, whether for a traditional location or a captive venue unit

• Advertising:  advertising fund contribution may vary (a) between 0% and 3.25%, to be determined by Chick-fil-A, as a percentage of Gross Receipts or (b) by vote of Operators in local or regional areas

• “Base Operating Service Fee” for a particular restaurant for each calendar month is the amount by which 15% of the Gross Receipts for the month exceeds the monthly equipment rental payable and business services fee for the calendar month.

• “Additional Operating Service Fee” as to a particular restaurant for each calendar month is (i) in the case of the Initial Business (i.e., your first restaurant), 50% of the Net Profit for Initial Business for the month, or (ii) in the case of an Additional Business, 50% of the Net Profit for Additional Business for the month.

Section III – Number of Franchised and Company-Owned Chick-fil-A Outlets

Franchised

2021

• Outlets at the Start of the Year:  2,152
• Outlets at the End of the Year:  2,242
• Net Change:  +90

2022

• Outlets at the Start of the Year:  2,230
• Outlets at the End of the Year:  2,338
• Net Change:  +108

2023

• Outlets at the Start of the Year:  2,331
• Outlets at the End of the Year:  2,494
• Net Change:  +163

Company-Owned

2021

• Outlets at the Start of the Year:  57
• Outlets at the End of the Year:  69
• Net Change:  +12

2022

• Outlets at the Start of the Year:  81
• Outlets at the End of the Year:  73
• Net Change:  -8

2023

• Outlets at the Start of the Year:  80
• Outlets at the End of the Year:  58
• Net Change:  -22

Section IV – News Updates on the Chick-fil-A Franchise

Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Chick-fil-A Franchise (Item 19, 2024 FDD)

Domestic Chick-fil-A Restaurants Included in Sample

• As of December 31, 2023, there were approximately 2,964 domestic Chick-fil-A Restaurants open and operating, including approximately 2,552 domestic company-operated and franchised Operator Chick-fil-A Restaurants and 412 domestic Chick-fil-A Licensed Units.

• The domestic Chick-fil-A Licensed Units, which are operated by Chick-fil-A Licensees, and their annual sales volumes, are not the subject of these financial performance representations.

• As of December 31, 2023, approximately 2,494 of the 2,552 domestic Chick-fil-A Restaurants were being operated by Operators and 58 of the 2,552 domestic Chick-fil-A Restaurants were being operated by Chick-fil-A or its affiliates.

• The domestic Chick-fil-A Restaurants that are operated or were operated at any time during calendar year 2023 by Chick-fil-A or its affiliates, and their annual sales volumes, are not the subject of these financial performance representations.

• Approximately 2,260 of those 2,494 domestic Chick-fil-A Restaurants being operated by Operators had been open and operated by Operators for at least one full calendar year as of December 31, 2023 and had been operated by Operators during the entire year.

• Of these 2,260 domestic Chick-fil-A Restaurants operated by Operators, 23 were captive venue units. Those 23 captive venue units and their annual sales volumes are not the subject of these financial performance representations.

• The remaining 2,237 non-captive venue Chick-fil-A Restaurants that had been open and operated by Operators for at least one full calendar year as of December 31, 2023, and their annual sales volumes, are the subject of these financial performance representations and discussed below.

• Approximately 188 of the 2,237 domestic non-captive venue franchised Operator Chick-fil-A Restaurants that had been open and operated by Operators for at least one full calendar year as of December 31, 2023 were located in malls, and approximately 2,049 of the 2,237 domestic non-captive venue franchised Operator Chick-fil-A Restaurants that had been open and operated by Operators for at least one full calendar year as of December 31, 2023 were located in non-mall environments (e.g., freestanding or drive-thru only units).

• During the calendar year ending December 31, 2023, 2 domestic non-captive venue franchised Operator Chick-fil-A Restaurants located in mall units permanently closed, of which 0 had been open for less than 12 months, and 16 domestic non-captive venue franchised Operator Chick-fil-A Restaurants located in non-mall environments permanently closed, of which 0 had been open less than 12 months.

Annual Sales Volume of Domestic Chick-fil-A Restaurants

• For purposes of the financial performance representations set forth below, the term “annual sales volume” includes a franchised Operator Chick-fil-A Restaurant’s entire gross receipts (excluding only sales taxes levied upon retail sales and payable over to the appropriate governmental authority) from sales at, from, or related to the franchised Operator Chick-fil-A Restaurant during the applicable calendar year, whether for cash or on a charge, credit, or time basis, including sales and services (i) where orders originate and/or are accepted at, in, or away from the franchised Operator Chick-fil-A Restaurant, or (ii) pursuant to telephone or other similar orders received or filled at or in the franchised Operator Chick-fil-A Restaurant.

• Both non-captive venue franchised Operator Chick-fil-A Restaurants located in malls and non-captive venue franchised Operator Chick-fil-A Restaurants located in non-mall environments are similar with respect to their operations and receive similar services from Chick-fil-A.

• Because franchised non-captive venue Operator Chick-fil-A Restaurants located in malls and franchised non-captive venue Operator Chick-fil-A Restaurants located in non-mall environments achieve generally different levels of financial performance, financial performance representations have been included for each type of Restaurant in order to provide information relevant to prospective Operators.

• Some franchised Operator Chick-fil-A Restaurants have sold this amount. Your individual results may differ. There is no assurance that you’ll sell as much.

Annual Sales Volume of Domestic Non-Captive Venue Franchised Operator Chick-fil-A Restaurants Located in Malls That Had Been Open and Operated by Operators for at Least One Full Calendar Year as of December 31, 2023 (188 Units)

• Less than $2,750,000:  approximately 32%
• Between $2,750,000 and $4,300,000:  approximately 33%
• Over $4,300,000:  approximately 35%
• Average:  $4,496,740 (63 of the 188 (or 34%) did as well or better than the average)
• Median:  $3,378,878
• Highest:  $18,989,428
• Lowest:  $1,114,090

Annual Sales Volume of Domestic Non-Captive Venue Franchised Operator Chick-fil-A Restaurants Located in Non-Malls That Had Been Open and Operated by Operators for at Least One Full Calendar Year as of December 31, 2023 (2,049 Units)

• Less than $8,300,000:  approximately 33%
• Between $8,300,000 and $10,235,000:  approximately 34%
• Over $10,235,000:  approximately 33%
• Average:  $9,374,320 (989 of the 2,049 (or 48%) did as well or better than the average)
• Median:  $9,274,890
• Highest:  $19,094,334
• Lowest:  $2,742,171

Section VI – Chick-fil-A Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️