Verified — real FDD extraction
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Chick-fil-A License Program
Other · independent · est. —
Chick-fil-A's licensed program places its chicken-sandwich menu in non-traditional venues such as airports, universities, and hospitals. Licensees are typically the foodservice operators of those venues, running a licensed Chick-fil-A outlet within the host location's operations.
Chick-fil-A License Program net unit count grew +15.1% from 2013–2015 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).
The verdict
Proven & steady
Distress
A real track record with an unremarkable region of the ledger: neither the growth nor the exits stand out, for better or worse. The main concern in the record: too many owners are failing outright rather than selling.
Exit rate · latest year
2.2%
fiscal 2015, per Item 20
Cost to open
$89K–$1.1M
Item 7 total investment range
SBA loan defaults
No loan record
no SBA 7(a)/504 loans found for this brand
Behind the verdict
the record, factor by factor · Item 20
3-yr trend · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness
Systemwide units
2013–2015
Survival record
FDD Item 20 · outlet status by year
In fiscal 2015, 6 of 274 franchised outlets left the system — a 2.2% annualized exit rate. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2013 | 2014 | 2015 |
|---|---|---|---|
| Outlets at start | 236 | 251 | 274 |
| Opened | 24 | 27 | 21 |
| Transfers | 0 | 0 | 0 |
| Terminations | 9 | 4 | 6 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 0 | 0 | 0 |
| Outlets at end | 251 | 274 | 289 |
| Net change | +15 | +23 | +15 |
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $0 franchise fee (Item 5) and a total investment of $89K–$1.1M (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$89K–$1.1M
all-in investment range
Franchise fee (Item 5)
$0
upfront, one-time
Royalty (Item 6)
10%
of sales, ongoing
Your figure — cross-check against this brand's Item 19 and current-owner validation.
Royalty you'd pay / yr
$100K
10% of sales, before profit
Over a 10-yr term
$1M
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for Chick-fil-A License Program with an independent CPADistress signals
news-sourced · bankruptcies, closures, lawsuits
No recent closures, bankruptcies, or major lawsuits found in the news for Chick-fil-A License Program. That's a good sign — but it reflects news coverage, not a guarantee.
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing Chick-fil-A License Program's numbers, including talking you out of a bad deal.
Talk to an independent CPA before you buy →Chick-fil-A License Program franchise questions, answered from the filings
What percentage of Chick-fil-A License Program franchises closed last year?
In Chick-fil-A License Program's latest FDD Item 20 (fiscal 2015), 6 of 274 franchised outlets left the system — an annualized exit rate of 2.2%. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.
How much does a Chick-fil-A License Program franchise cost?
Per Chick-fil-A License Program's 2016 FDD, buying in requires an initial franchise fee of $0 (Item 5) and a total initial investment of $89K–$1.1M (Item 7).
What royalty does Chick-fil-A License Program charge?
Chick-fil-A License Program charges an ongoing royalty of 10.0% of gross sales, per Item 6 of its 2016 FDD.
Does Chick-fil-A License Program disclose earnings (Item 19)?
Yes — Chick-fil-A License Program makes a financial performance representation in Item 19 of its 2016 FDD. Read it closely: franchisors choose which units and which metrics to include.