Why Chick-fil-A franchises are so cheap
Take another look at the charts above, and you’ll see that Chick-fil-A stands out in a few ways:
It has no minimum net worth requirement.
It has the lowest franchise fee of any chain ($10k).
It has (by far) the lowest total investment cost for a franchisee ($10k).
It charges (by far) the highest royalty fee.
The reason for this? Unlike other franchise models, Chick-fil-A — not the franchisee — covers nearly the entire cost of opening each new restaurant (which, according to its financial disclosures, runs from $343k to $2m). The franchisee only pays the $10k franchise fee.
Chick-fil-A pays for (and retains ownership of) everything — real estate, equipment, inventory — and in return, it takes a MUCH bigger piece of the pie.
While a franchise like KFC takes 5% of sales, Chick-fil-A commands 15% of sales + 50% of any profit.