CHICK-FIL-A License Program

CHICK-FIL-A License Program

The Chick-fil-A License Program grants licenses to operate limited-menu, quick-service restaurants featuring boneless breast of chicken sandwiches and related items like nuggets, salads, fries, and lemonade in non-traditional captive audience locations such as schools, universities, airports, hospitals, and workplaces. Licensees either self-operate from custom facades or counter areas or act as food service providers to third-party operators at these sites, complying with Chick-fil-A's standards and specifications without an initial license fee. The target market is primarily customers aged 18-44, with a developed presence in the Sunbelt region from Pennsylvania south through Texas and growing elsewhere.

412
Locations
$586K–$3337K
Investment
Since 1992
Franchising
Food & BeverageAtlanta, GAwww.chick-fil-a.comDisclaimer

Franchise Costs


Franchise Fee
$0
Item 5 of FDD
Initial Investment Range
$585,500 $3,337,000
Low: $585,500High: $3,337,000
Item 7 of FDD
Royalty Rate
10.00%
of gross sales
Brand Fund
0.00%
Item 6 of FDD

10% license fee (royalty on Gross Receipts) + 0% ad fund + no fixed monthly fees

Financial Performance


Item 19 Financial Performance

Average Gross Revenue
$0

Data Based On: 384 domestic Chick-fil-A Licensed Units open for at least one full calendar year as of December 31, 2023, operated by independent, franchised Licensees.

* Calculated overall weighted average gross revenue from two segments: College/University campuses (300 units, average $1,327,108) and Hospitals/Businesses/Industries/Airports (84 units, average $3,278,264). Weighted average = (300 * $1,327,108 + 84 * $3,278,264) / (300 + 84) = $1,753,923.375. The document explicitly states that it does not reflect costs of sales or operating expenses, so no profit/EBITDA figures or estimates could be provided.

Extracted Item 19 Section

How CHICK-FIL-A License Program Compares


Key Insights

  • Top 10 largest franchise system in Fast Casual
FranchiseInvestmentFeeRoyaltyLocations
CHICK-FIL-A License Program
Current
$586K – $3.3MN/A10.0%412
Tropical Smoothie Cafe$300K – $721K$35K6.0%1,371
TROPICAL SMOOTHIE CAFÉ$300K – $721K$35K6.0%1,371
FIREHOUSE SUBS RESTAURANTS (UNIT)$379K – $1.4M$20K6.0%1,248
Zaxby's$1.4M – $3.8M$35K6.0%826
Qdoba$548K – $1.3M$40K5.0%652
Fast Casual Average
107 franchises
$532K – $1.2M$39K5.6%

* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 107 Fast Casual franchises by location count.

Locations & Growth


Outlet Growth Over Time

Total outlets at end of each year

Geographic Distribution (2023)

Outlets by state across the United States

Top States
1TX
415
2FL
206
3GA
204
4CA
165
5NC
163
6VA
119
7SC
81
8MD
80
9TN
78
10PA
78
11OH
72
12AL
70
13CO
52
14NJ
51
15IL
51

+34 more states

Franchisee Contacts


2,744 franchisee contacts on file from official FDD filings.

NameSBA Loan
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active
John Smith
ABC Franchise LLC
$350,000
2023 · Active

2,744 Contacts Available

Unlock all CHICK-FIL-A License Program franchisee contacts with verified contact information

Due Diligence


Litigation (Item 3)

Franchisee Cases0
No litigation involving franchisees reported

Bankruptcy (Item 4)

Bankruptcy HistoryYes

Pier 1 Imports, Inc. (associated with Cheryl Bachelder) filed Chapter 11 on February 17, 2020.

System Health (Item 20)

Franchise system changes reported in the most recent fiscal year

Terminations
8
Non-Renewals
0
Reacquired
0
Ceased Ops
0
Transfers
0
Sold to Franchisees
0
Projected New
0

Frequently Asked Questions


The total initial investment to open a CHICK-FIL-A License Program franchise ranges from $585,500 to $3,337,000. Ongoing royalty fees are 10.0% of gross sales.

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