Becoming a Chick-fil-A franchisee is almost impossible

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This Is Why Chick-fil-A Is So Successful

Want to become a Chick-fil-A franchisee? Good luck — the company only accepts about 0.4% of applicants who apply every year.

The chicken chain reports that it receives more than 20,000 inquiries from franchisee candidates every year. Of those candidates, Chick-fil-A selects just 75 to 80 new franchisees annually, according to spokesperson Amanda Hannah.

"[Chick-fil-A] is probably the most particular franchisor out there," franchise business expert Joel Libava told Business Insider.

Libava says Chick-fil-A immediately comes to mind when listing the most selective franchisors in the business — though he says the company is not a good fit for everyone.

RELATED: 10 money-saving fast food hacks

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10 money-saving fast-food hacks
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10 money-saving fast-food hacks

Restaurant: McDonald’s

Hack: Order two four-piece nuggets instead of one six-piece. It’s cheaper, you get more nuggets and you get more sauces. Score.

Photo credit: Getty

Restaurant: McDonald’s

Hack: Order a McDouble without the ketchup and mustard but with lettuce and Big Mac sauce. You'll pay for the Big Mac taste for the price of a McDouble.

Photo credit: Getty

Restaurant: Chipotle

Hack: Order half of one protein and half of another kind (like chicken and steak). You’ll almost always get more than half of each and end up with up to 1.5x the protein in your burrito or bowl for the price of a normal portion.

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Restaurant: Krispy Kreme

Hack: Fill out the survey on the bottom of your receipt for a free doughnut with the purchase of one. Hypothetically if you kept doing this, you could win unlimited free doughnuts. Not advised.

Photo credit: AP

Restaurant: Arby’s

Hack: Order two junior roast beef sandwiches instead of one regular classic. You'll end up with more meat for a lower price.

Photo credit: Getty

Restaurant: Jamba Juice

Hack: Substitute any ingredient in any smoothie for the same price. If you’re craving a smoothie with non-fat yogurt instead of mango, or extra strawberries instead of blueberries, customize it to your liking without any extra charge. It will save you more than being charged for creating your own smoothie from scratch.

Photo credit: Getty

Restaurant: Jack in the Box

Hack: Order two Jr. Bacon Cheeseburgers and combine them into one for a much cheaper version of a Bacon Ultimate Cheeseburger. 

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Restaurant: McDonald’s

Hack: Order a sausage McMuffin off of the dollar menu but ask for the sausage to be substituted with egg—an egg McMuffin for a dollar.

Photo credit: Getty

Restaurant: Any pizza place

Hack: When you call to order delivery, ask if there were any orders that weren’t delivered—the pizza place will often give you those orders for a discounted price (perfect if cold pizza is your thing.)

Photo credit: Getty

Restaurant: Subway

Hack: Order a Double Steak and Cheese Sub instead of the Philly Cheese Steak Sub—you’ll get the same sandwich at a normal foot-long price.

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"We do not offer franchise opportunities to all qualified candidates," reads the 'Franchise Opportunities' section of the company's website. "Rather, we select the best candidates for a limited number of franchise opportunities."

Becoming a Chick-fil-A franchisee is a multi-step process. First, candidates submit a form through the company's website expressing their interest. Next, Chick-fil-A interviews candidates — as well as their friends, family members, and business partners.

Once they are selected, franchisees still have to undergo a multi-week training program before they open their own locations.

For most fast-food chains, the biggest roadblock to becoming a franchisee is cost. For example, if you want to be a franchisee at McDonald's — another notoriously selective company — you need at least $750,000 in liquid assets and a background in business. Startup costs range from $955,708 to $2.3 million, including a $45,000 franchise fee.

Conversely, it only costs $10,00 to open a new Chick-fil-A, with no threshold for net worth or liquid assets. Chick-fil-A pays for all startup costs, including real estate, restaurant construction, and equipment.

What makes becoming a Chick-fil-A franchisee so difficult isn't the money, says Libava. It's fitting into the chain's unique culture and business model.

"[Chick-fil-A] wants 100% control — and they have it," says Libava. "It's a very, very unique individual who is going to apply and be accepted."

Others in the fast-food industry agree with Libava's estimation that Chick-fil-A's franchisees stand out in the franchise industry, something that may help the chicken chain's business.

"I don't necessarily subscribe to their religious beliefs, or their beliefs about the world, but I think they find owners that are religious bent [who] tend to be more conservative," KFC CMO Kevin Hochman told Business Insider in May. "They can make sure that procedures get followed. I think that's a competitive advantage for them. I don't know if it's an advantage I would want, but it's certainly working for them from a business standpoint."

Life as a Chick-fil-A franchisee — which the company calls an operator — is very different from the typical franchisee experience. Operators do not own or receive any equity in their businesses. The company picks the restaurant's location, and then owns the restaurant.

Franchisees cannot sell their locations or pass them on to the next generation. Nor can they open multiple locations, which can limit franchisees' potential profits.

"I advise [potential franchisees] against it if they originally wanted a business they could sell someday," says Libava, who believes most people who indicate interest in opening a Chick-fil-A location don't fully understand the difference between a franchisee and an operator.

The company says that its model allows franchisees to be more intimately involved in day-to-day operations.

"Chick-fil-A operators must be as comfortable rolling up their sleeves in the kitchen as they are shaking hands in the dining room," Hannah told Business Insider.

Chick-fil-A's franchise website states that the company is looking for franchisees seeking a hands-on business opportunity, with a proven track record in business leadership. The ideal franchisee has successfully managed his or her personal finances, is results-oriented, and has no other active business ventures.

If that sounds like you (and you aren't opposed to Chick-fil-A's business model), you can apply now on the company's website — there's a one in 250 chance you could have the chance to open the chicken franchise of your dreams.

NOW WATCH: Famous chef David Chang has created his own Chick-Fil-A killer

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