Do You Really Need A Franchise? - AAFD | American Association of  Franchisees & Dealers
 Should you Franchise Your Business?
 Questions that business owners should ask themselves. 

  1. Does your business make you happy?

To start off simply, it is important that the business in question is something that truly makes you happy. If you don’t love what you do, it can be harder to sell the model to others.

  1. Is your business replicable?

Your business might be successful in your hands and in your market, but is it something that can be replicated by someone else in another part of the country? 

  1. Do you have the right systems in place?

 Because franchisees are taking on an already established business plan, they need to be able to dive into operations without the knowledge that a brand’s founder has.

  1. Are you working with the right team?

From consultants and corporate team members to franchisees and their employees, it’s key for brands to build a network of like-minded individuals who share the same passion and drive for success. 

  1. Will the numbers work out well for your franchisees?

Finding the right people to partner with is dependent on several factors, but ultimately comes down to whether or not it will be a successful venture for them. 

  1. Are you able to provide support?

 When franchisees sign on to develop a brand, they’re going to rely heavily on a corporate team to help get their businesses up and running.

  1. Are you a good leader?

Running multiple units is a completely different game than running just one. As your company grows, your role in the business changes. 

  1. Do you have a clear vision?

Having a clear vision is a crucial element when it comes to achieving growth. For franchisors, communicating their vision with franchisees and getting behind that vision is essential to meet goals.


Why Is It So Cheap To Invest in a Chick-fil-A?

 The catch is that this leaves the franchisees in more of an operator role than one of an owner. Chick-fil-A operators pay 15% in royalties, and 50% of profits go to corporate. Further, because the franchisee did not fund the build-out, they do not own the restaurant and therefore cannot sell it should they decide to transition out of the business. 

In the franchise world, a total initial investment of $10,000 is pretty low. Is the Chick-fil-A franchise a “get what you pay for” situation? Not really.

Of course, some franchisees go into business with hopes of building up an empire and a strong business that can be passed down to family members. Though this isn’t the case with Chick-fil-A, as operators cannot sell their locations, direct ownership of a business certainly is not the only path to generational wealth.

According to the brand’s most recent Franchise Disclosure Document (FDD), its U.S. systemwide sales were nearly $19 billion in the previous year, a notable increase from 2021’s $16.6 billion, 2020’s $13.7 billion and 2019’s $12.2 billion.

Chick-fil-A locations with a drive-thru averaged over $8.5 million in sales per unit, and the highest-performing location secured nearly $17 million in revenue. Yes, these stats are lowered significantly when the corporate cut is taken out, but a multi-million dollar operation is nothing to sneeze at.

 After all is said and done, it is reported that Chick-fil-A operators do take home a decent salary. Mashed reports an average of around $200,000 annually, while reported salaries on Glassdoor average $82,065 annually, with the top of the range sitting at about $138,000. For owner-operators who have a true passion for people, service and even the brand itself, $10,000 can unlock an opportunity that is rewarding in more ways than one.
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