I am astounded, what a sneaky business model; Chick Fil A has a brilliant plan in place.
Some of this information is directly from their website.
Chick Fil A has an initial financial commitment of only $10,000. Annually 60,000 people apply, but only about 80-120 are selected annually.
But:
Franchising is not an opportunity for passive financial investment, working from the sidelines, or adding to a portfolio of business ventures. This business opportunity is a hands-on, life investment to own and operate a quick-service restaurant. It often requires long hours and leading a team of mostly young, hourly-paid employees. It’s hard work – but it’s exceedingly rewarding.
Chick-fil-A Franchisees run their own incredibly complex businesses, ultimately in charge of all aspects of the restaurant. Their success and return on investment are proportionate to their hard work, business acumen and leadership effectiveness. It is not however, guaranteed.
The vetting process can take as long as a year. They are not looking for an absentee investor looking to pad their portfolio.
So, after the vetting, training and financial investment, you become an “operator,” not an “owner.” You don’t actually own the store — you can’t sell it when you want to retire or make it part of an inheritance. Chick-fil-A owns the local business, the physical property, and the intellectual property.
You spent all that time and money to become a store manager. Imagine having to pay $10,000 for a $70,000 a year job, very sneaky. Taco Bell owners can expect between $80,000 and $100,000 a year per restaurant, according to Nerd Wallet.
I may have to invest in the franchisor.