There’s something magical about a Chick-fil-A sandwich – from the soft bun to the two pickle slices that adorn each crispy filet. But for retirees, there’s more than tasty treats on the menu. As it turns out, Chick-fil-A could be a great recipe for a retirement investment.
Here’s the deal: it only costs $10,000 to open a Chick-fil-A restaurant. Yep, only $10,000. This small fry sum includes everything in the franchise cost, meaning you won’t need to worry about real estate, construction or equipment costs. Compare this figure to opening a Taco Bell, which comes in at a cool $2 million, and you see the value here. With Chick-fil-A, you can get a piece of the action without taking a bite out of your savings.
Why is the cost so low? In short, Chick-fil-A doesn’t want cost to be a barrier to folks who want to open a franchise. And the company collects its profits through heftier monthly fees to headquarters than the industry standard. For instance, Chick-fil-A headquarters receives 15% of sales plus 50% of remaining pretax profit per store, compared to the 8.5 – 12% that McDonald’s owners pay.
And the company is picky about who gets to join their team – they don’t just let anyone sell their sandwiches. The process for acquiring a Chick-fil-A is rigorous and competitive – from average pools of over 20,000 applicants each year, only about 80 new franchises emerge. Selection of franchisees includes an extensive interview process, which includes friends, family members, and business partners. It’s like they’re the FBI of fast food.
But despite the beefier monthly fees and grinding interview process, successful franchisees feel confident in their investment – Chick-fil-A is the eighth-most successful fast-food chain in the country. Overall, it generates more revenue per restaurant than any other chain nationally. So if you’re looking to roll up your sleeves and start a post-career business, Chick-fil-A might be the place for you.