- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Chick-Fil-A Operator Income
Posted on 3/20/17 at 12:50 pm to elposter
Posted on 3/20/17 at 12:50 pm to elposter
quote:
I imagine all labor and food costs belong to the operator, but I wonder about the real estate, marketing, etc type costs.
Chik-Fila-A builds the facility and provides all the equipment for a rental fee of 15% of gross sales. They then take 50% of the remaining gross sales.
Owners are discouraged from operating more than one franchise.
quote:
I would be shocked if the average is that low. Is that just a guess or do you some information that supports that?
I know, a former client owned part of a franchise. I was surprised as well until I learned of the royalty percentage.
Its actually not bad when you consider you really have no major upfront costs. The franchise fee is one of the lowest in the industry.
This post was edited on 3/20/17 at 12:53 pm
6
Posted on 3/20/17 at 12:56 pm to SippyCup
That and you have to be accepted into the cult of CFA. CFA is not for people looking to get rich.
Posted on 3/20/17 at 1:09 pm to SippyCup
quote:
The franchise fee is one of the lowest in the industry.
200K annually on an initial investment of 5,000.....
Pretty good I'd say. I'd say over time, you should definitely meet almost any definition of "rich"
Posted on 3/20/17 at 4:38 pm to SippyCup
Sippy Cup has provided all the correct info. The only comment for the Houston area is operating more than one store. Houston area I know allow 2. The owners I know take home about 175k-225k a year per store. Only one person in America has 3 and he owns them in the Katy area. However, you can give up one location, to start up a new one. There's a family in the Houston area where the Dad owns 2, one son owns 2, and the other son just opened his 2nd.
Posted on 3/21/17 at 9:56 am to SippyCup
quote:
Owners are discouraged from operating more than one franchise.
I know a guy pretty well that operates multiple locations in Auburn, AL. It's not impossible to have more than one. He drives a ridiculous vehicle and can be found at the Piccolo listening to jazz with his OT 9.9 wife on the weekends.
He and I talked about it some and he said that there are so many investors wanting to jump at prime locations for a franchise that it's almost impossible for anyone new to get involved. It's why he was looking outside of the US for investment opportunities for Chick Fil A franchises.
Posted on 3/21/17 at 11:13 pm to SippyCup
quote:
They then take 50% of the remaining gross sales.
This is incorrect. They take 50% of pre-tax profit, NOT sales.
No fast food restaurant could survive a royalty payment of 50% of sales. The margins are nowhere near that.
ETA - So, if you can keep margins at 15%, the operator of a $3.9 mil store would make about $282k pretax.
This post was edited on 3/21/17 at 11:22 pm
Posted on 3/22/17 at 6:44 am to SippyCup
quote:
The franchise fee is one of the lowest in the industry
You also get no say on where the restaurant is placed (so where you will work), and you own no part of it. Im fairly sure there is no franchise fee because of that. If I want to start a McDonalds, I'm going to pay a bunch of money up front to McDonalds Corporation as a franchise fee, but I get to make most of the decisions and I own every part of my franchise location. Plus they give additional opportunities to own more than one location. Being a Chick Fil A operator is essentially a glorified general manager, while owning a real franchise can build a fortune for generations if you're successful. Look at the Valluzzos, they've turned a couple stores when McDonalds started franchising into a fortune for their entire family with more wealth building every day. Of course, I've seen quite a few McDonalds fail, while I've never seen a Chick Fil A without 10 cars in line
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News