At a Glance
- Founded: 1964
- Locations: 2,493
- Initial Investment: $ 582K - 2,025K
- Headquarters: Atlanta, GA
- Category: Fast Food Food & Restaurant
Chick-fil-A is a privately owned and family-operated quick-service restaurant specializing in boneless chicken-based dishes. The franchise has gained a cult-like following that has propelled the brand from the American South, its base, to a nationwide chain of approximately 2,500 locations and estimated annual systemwide sales over $10 billion.
Chick-fil-A actively seeks franchisees, and invites accepted new owners to an extensive, multi-week training program before opening a restaurant, as well as offering follow-up support. The company is planning to expand particularly across the American Midwest and Mountain states, as well as in the Northeast, California, Texas and Florida. As a stipulation with owning a Chick-fil-A, the restaurants must remain closed on Sundays.
Chick-fil-A’s story goes back to 1946, when Truett Cathy opened his first restaurant, The Dwarf Grill, in Hapeville, Georgia. In the early 1960s he founded Chick-fil-A, opening the restaurants in shopping malls beginning in 1967. Since then, Chick-fil-A has grown into the second largest quick-service chicken restaurant chain in the United States.
Chick-fil-A has a distinct franchise business model. The franchise fee to join Chick-fil-A is a very accessible $10,000. Chick-fil-A corporation will pay for land, construction and equipment for a restaurant, then rent it to the franchisee for 15% of sales plus 50% of pretax profit remaining. Therefore, startup costs are very low, in exchange for higher-than-usual monthly payments.