As an entrepreneur evaluating opportunities before you invest your hard-earned money is a wise move. Where to put your money matters a lot. It is from the money that you will be able to see your return in investments. There are so many business ventures waiting for you to put your money.
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You can buy shares of a company that is doing well in the stock market, go ahead, and buy properties and later sell them at a profit or you can go ahead and buy the franchise from a reputable brand, sounds good right? Read along as I expand on franchising.
What is franchising?
Chick-fil-A Franchise
As an entrepreneur, do you wonder how successful business manage to have so many branches all over the world? Do all the joints belong to one person? Many of the successful companies open businesses through franchising their business.
Franchising is a process where a successful business owner who is a franchiser sells the right to their business logo, name, and model to a third-party retail outlet. Successful businesses understand the need for allowing potential investors to have a share of what they make in terms of profit.
By allowing the third party to own and run their brand at a fee and certain conditions, they grow their brand to different parts of the world and in the process gain more revenue without putting much effort into the business. A good example of a business that has been successful in franchising is the Chick-fil-A.
About Chick-fil-A
It is an idea that as born in the year 1946. The founders came with the brilliant idea of offering strictly chicken dishes to the public. What started small has grown to be a huge brand with more than $1 billion worth of revenue annually, so what is the secret?
The secret lies in offering the best. They make sure their clients the best. To do that, they employ competent employers to deliver what the client orders. That has seen more and more people walking into their premises to have some of the delicacies that they make.
Over the years, their brand has grown to be a known name and logo. There has been a need for expansion and that is why they came up with the idea of franchising. They saw the need of giving an opportunity to a Christian with well-grounded morals and a hard working spirit the option of owning and running a branch.
Chick-fil-A Franchise
Chick-fil-A Franchise
There has been much speculation about it. Many investors have been talking about it in forums and internets. They question whether it is worth owning their franchise. For you to understand more, scroll along and know the basics before you make the decision.
Chick fil A offers its franchise to the public each year. They look for result-oriented people that are hardworking and willing to obey and follow their strict rules. Whether the deal is good or bad, people have been applying for the chance to on their franchise every year.
With over 20,000 applicants per year, it is clear that the franchise process is a competitive one. It means that people have been seeing the need to be part of the successful company. With such a huge net worth per year, you will have a good share of your cake, right?
Advantages of Chick-fil-A Franchise
Before you go to their website and fill the form, you need to know what you will gain from them. When you franchise from Chick-fil-a, you get the following benefits;
- Track record of success
Unlike where you put your money in a business and start it from scratch when you buy the franchise from Chick-fil-A, you enter into a trail of their success. Your business will too become successful due to the brand and reputation. It will be a plus for you.
- Strong brand
Every investor wants to associate him or herself with a successful brand. It brings pride and determination into the entrepreneur. It motivates you to work hard so as not to let the brand down. A strong brand also brings in sales. Clients trust known strong brands and always want to buy from them.
- Training program
Chick-fil-A, just like any other successful franchising company offers a training program to all successful applicants. They do that to equip the investors with the necessary skills and knowledge needed to run the branch that the investor will run. You get to gain more skills that you already have.
- Operational cost
When it comes to Chick-fil-A franchise, you will incur a low operational cost. That is because they provide you with all the equipment you will require to start up the branch. They will set up for you and all you need to do put up your sleeves and run the branch.
- Marketing assistance
You gain from the marketing the company makes. You will do less work when it comes to making people aware of the branch. Chick-fil-A is a known brand and everyone from all lifestyles knows them and what they offer. It will save you time and effort of advertising your branch.
- Real estate and construction assistant
In Chick-fil-A, you do not have to trouble yourself with how and where you are going to locate the business. The management takes care of all the real estate and construction expenses in exchange for 5% of the net profit.
- Avoid risk
Every entrepreneur does the best to minimize risk or avoid it if possible. That is why franchising the Chick-fil-A beneficial. You get to have an already successful business for you to operate. There will be less risk since you are not starting the business from scratch.
Disadvantages of Chick-fil-A Franchise
With all the goodies that it comes with, it is clear there are some grey areas you must take note of while handling the franchise. The following are the disadvantages;
- You need to be in the store and run it.
- You get to own no equity of the company, you remain to be the operator.
- They do not allow you to own multi-unit of any other business, which limits your potential.
- They get to dictate where the branch will be. Sometimes they will need you to relocate.
- Lo earning due to the ridiculous percentage that they ask in return.
- Chances of getting the franchise are low.
What You Need to Apply the Chick-fil-A franchise
Now that you have an interest in getting the franchise from Chick-fil-A, you should not let what others are saying about then hinder you from going for it. Many people have been speculating how hard it is to get the franchise, but trying your luck is the only way you can prove them wrong.
Every year, they have over 20,000 applicants. People from all over the world submit their application stating their interest in owning one. while it is a difficult process, successful applicants always have an amazing story to tell.
According to their spokesperson Amanda Hannah, the process is not all about the qualification, but also about the determination. They need a Christian who is hard working, with discipline and has family values for the franchise. For you to get the franchise, you must do the following.
- Pay a fee of $10,000
Yes, you must part it the money for you to franchise one of their branches. With the fee, you will stand a chance of owning one of their branches. To many, it is a low fee if you compare with other fast food companies. If you have the cash to invest, then look at the below other qualifications.
- be ready to work full time
Yes, if you get the franchise, you must be ready to pull up your sleeves and work full time in the franchise. To many, it is controversial since the aim of every investor is to own a business and run while in or out of it. According to Hannah, you should be ready to work in the kitchen and shake hands in the boardroom.
- About personal finances
They need a clear and clean track of record when it comes to your financial statements. They do not want a person who is not able to handle his money. Their logic is if you are not able to handle yourself, how they will entrust you with such a big investment for you to run
- Motivated
You should be result oriented. A person who is willing to start up the business and drive sales. You must be able to make money with the branch that they entrust on you. They expect you to grow the business and make more revenue for yourself and them.
- You should have no other active venture
They expect you to give your best to the business. That means you should have no other business or venture that will take your focus off the business. That includes not owning any venture that will bring the conflict of interest. They need all your attention into the branch that they will give you to operate.
Once you see you are ready to meet the following conditions, go ahead, and submit your application on their website. In there, you will also find the terms and conditions of franchising and complete the application process. Though the chances are low even after meeting all that, hope for the best.
They sit down and narrow down the applicants depending on what they need. Once they settle with successful once, they call them for an interview. They also contact family, friends, and their business partners in the process to know the applicants more.
If you are successful to be one of the people who gets the franchise, you go through an intensive development course. They equip you with what you need in order to operate a successful branch. They understand if you are successful, they also too get the success.
They also have a say on where you will locate the branch. That is because they take charge of the real estate matters and in the construction of the premises. After that, they equip the premises for you to start up the business.
Conditions of Chick-fil-A Franchise
If you are among the lucky 75-80 franchises, there is a certain rule that you must adhere to before you start operations. That is to ensure that you will not have a conflict with them. Once you get the franchise, you should know that;
- Chick-fil-A still owns the company
In their website, they refer to franchisers as operators. That means you are given the responsibility of the branch but you own no equity of the business by running the business, you earn no equity and the business remain to be theirs.
- You have no ownership to the property
They take care of the real estate and construction matters. That means the property belongs to them and you should not pass it to your next of kin in case anything happens to you. You should understand that and adhere to it.
- Close on Sunday
They believe you are a Christian and expect you to observe their tradition of closing on Sunday. You should let your workers have an off day to worship and spend time with their family and friends. You should know that if you are to work on Sunday, it will be for charitable reasons.
- They will provide all
According to the agreement, Chick-fil-A will provide everything concerning real estate and construction. They will also equip the premises and in exchange, you will give them 15% of the sales you generate. You will also surrender 50% net profit after taxation to them.
With the above information, you will be able to approach the Chick-fil-A franchise issue with a lot of caution. You will be able to evaluate what to do and not to do. If you choose to go for the franchise, you will have all the information you need to run it successfully.
As an entrepreneur, franchising s an amazing way of making money. That is because you get to associate yourself with a successful business and branch. To some like Chick-fil-A, you must have all the information at hand before you apply to avoid any conflict with the management in future.
