Business

Chick-fil-A is one of America's toughest franchises and the startup cost may shock you

Chick-fil-A, a fast-food chain with a unique business model, attracts thousands of hopeful applicants each year for a limited number of owner-operator...

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Chick-fil-A is one of America's toughest franchises and the startup cost may shock you
Chick-fil-A store exterior with American flag in Tulsa, Oklahoma.

Chick-fil-A, a fast-food chain with a unique business model, attracts thousands of hopeful applicants each year for a limited number of owner-operator opportunities. According to Julian Good, who owns a Chick-fil-A restaurant in St. Charles, Illinois, the selection process is highly competitive.

Good, who appeared on the "Founder Talk" podcast, explained that the company receives around 100,000 applications annually, with roughly 200 individuals selected to become owner-operators. Those without prior experience with the company often wait three to five years before receiving an opportunity. However, Good noted that previous experience with Chick-fil-A is not required, and more than 25% of newly selected owner-operators had never worked for the company before applying.

Chick-fil-A's selection process looks for leaders who are willing to devote their full-time and best efforts to operating a restaurant. According to the company's website, owner-operators come from a wide range of professional backgrounds, including manufacturing, health care, education, law enforcement, and retail. Unlike many franchise systems, Chick-fil-A owner-operators do not own the restaurant they operate. The company retains ownership of the restaurant, equipment, and, in most cases, the real estate.

Good highlighted one of the biggest differences between Chick-fil-A and competing franchise models: when an owner-operator retires, the restaurant is returned to the company, and the operator does not build equity in the business or sell it. This approach also extends to the company's operating schedule, with all of its restaurants closed on Sundays.

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NTC Report coverage is based on reporting from the original publisher.

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