Frying High With Chick-fil-A

My son would eat at Chick-fil-A every day if he could. There’s one right across the street from his basketball club, and it’s not unusual to see 20 idling cars in the drive-thru line waiting for a spicy chicken sandwich or chicken nuggets.

Company executives, along with representatives from four other franchisors, will hit Seattle March 6 as part of a nationwide tour seeking potential franchisees. The event is at the Parkview Event Space at 200 Eighth Ave. N. Another Seattle event is set for Sept. 11. The seven-city tour is in partnership with WeFranch, a platform that connects franchisees with franchisors. Seattle is the third stop.

Other franchisors on hand are Pizza Factory, a California chain with 10 locations across Washington state; HomeVestors, a company that buys houses for cash; Rhoslyn Florist; and Click IT, a retail computer repair and IT services franchise. Experienced franchise operators (think judges or advisers) will evaluate the pitches, essentially representing attendees who are prospective franchisees. The event is modeled after startup pitch competitions in Silicon Valley and is limited to 100 people.

It’s clear, though, that Chik-fil-A, with its name recognition and popularity, is the star of this show. Chik-fil-A, in fact, is the only company on all tour stops, and Chick-fil-A’s marketing materials are splashed across the tour’s official website.

A few facts: Chick-fil-A’s initial buy-in of $10,000 is among the lowest in the franchising industry, though operational investments can range from about $300,000 to $2.4 million, depending on location and restaurant size. That’s in line with the industry average.

A LinkedIn post from franchise broker consultant Wendy Real also notes that franchisees must pay Chick-fil-A 15% of gross sales and 50% of profits. On its own website, Chick-fil-A admits becoming a franchisee requires long hours and is “not for those seeking passive financial investment.” It’s estimated that fewer than one-half of 1% of applicants are selected.

Georgia-based Chick-fil-A made more than $21 billion in 2023, according to QSR magazine, trailing only McDonald’s and Seattle’s own Starbucks in the fast-food industry. New York City-based WeFranch notes that Chick-fil-A’s systemwide sales have nearly tripled since 2009. Average unit volume is $7.45 million, significantly higher than other fast-food chains.

The International Franchise Association says 8.9 million people across the United States work in the franchise industry, though it also notes that Washington and California are projected to be the slowest-growing states for franchising. It also finds that personal services and quick service restaurants “will experience the strongest growth of any industry.”

Chick-fil-A has 21 locations across Washington state, mostly in the Seattle area.