Top 6 reasons to NOT buy a Chick-Fil-A Franchise!

Think you want to own a Chick-fil-A Franchise? Want to know how much you can earn with a Chick-Fil-A? Tune in today with Franchise City For some people is can be a great fit but not everyone. Let me begin by saying there is a lot that Chick-fil-A has done right. Their earnings per store or average unit volumes are at the top of the QSR50 at 4.4 million. To put that into perspective the average unit volume of a Subway store – lets go way down second from the bottom of the chart -uh-oh at a paltry $422,000. So Chick-fil-A locations earn 10 times what a Subway earns! Now for those of you who follow this channel you know I am not a fan of Subway, but if I had to choose between the two I would invest in a Subway before Chick-fil-A even despite those earnings. I’ll reveal why in a moment.

Chick-fil-A also has a very low franchisee dropout rate at less than 5% and many operators are with the company for 20 years or more. Employee turnover is also low at only 60% compared to typical food industry attrition rate of over 100%. Chick-fil-A really seems to take care of their employees and provides incentive programs for hard workers that show initiative to move up the ladder. Considering how effective this is it’s surprising how few companies offer this.

Chick-fil-A has just over 2000 restaurants and every one of them closes on Sundays. Despite having one less day to sell, Chick-fil-A has higher total revenues than many franchises open Sundays and with double the locations. The corporate office doesn’t hide the fact they are a Christian organization that believes in traditional marriage and family values and they got some heat recently for opposing same sex marriages and sending millions to organizations that lobby against it.

Chick-fil-A was actually started as the Dwarf Grill in 1946 and opened by S. Truett Cathy, The first Chick-fil-A opened in 1967 so they have a long history and experience in franchising.

So it looks like for some people we have the American Dream here – Christian values, closed on Sundays , 4 million dollars annual volumes per store, happy employees and low franchisee turnover AND did I mention a super low franchise fee of only $10,000! Sign me up!!

Interesting to note: Despite all these good things you will never see investor groups, single investors, brokers, sports celebrities or anyone looking to build a franchise empire buying a a Chick-fil-A. Why is that? Lets look at those top 6 reasons you may not want to buy a Chick-fil-A

1. You absolutely need to be at the store and run the store. The store becomes your life. One of the benefits of franchising is the ability to eventually or even initially operate your store in a passive capacity, meaning it will still operate and generate revenue while you are doing other things. Some franchises are better at this than others but being able to have your business operate while you run other businesses, work a career, travel or whatever else, is a major benefit of franchising. In situations like this where franchisees are required to work in the store we call this “buying a job” and with Chick-fil-A you will be required to work in the store………….

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