If Dan Cathy would have kept his bless-ed mouth shut, I wouldn’t have written this post about his Chick fil A franchise empire.
And, it is an empire. And, speaking of birds, even a Cardinal knows that it’s an empire.
It’s also one of the the most bizarre franchise systems in the world.
- Potential franchisees only pay a $5,000 “Franchise Fee”
- Franchise owners don’t own a thing
- Franchisees maintain no equity in “their” business
- Franchisees are not allowed to own any other businesses
- Chick fil A chooses the location
- Chick fil A owns the location
Typical Franchise Business Systems
Dan Cathy’s franchise system isn’t even a distant cousin to the typical franchise seen today all over the world. For example, an average franchise fee will run $25,000-$35,000 or more. Proof. And that’s just for starters….
If you were to buy a franchise, theoretically, you would have an opportunity to build equity. Imagine how you would feel, if after working your tail off-building your franchise business up for 10 years or so, you could sell it and deposit a check for $600,000 into your retirement savings account. That’s called equity. What? You don’t believe me? Will you believe my friend, Carol Roth, who’s background includes investment banking?
Or, maybe you decide that instead of cashing in, you want to keep things in the family. In other words, you want to pass it on to your heirs. No problem. Just do it.
But, it would be a problem if you were a Chick fil A franchise owner. That’s because you’re not allowed to do that. No way. No how. You bad person, you….
Did I mention that you can’t sell your business, either? Would you like to know why?
Because you don’t own a thing when you’re a Chick fil A franchisee. That’s because…
You Bought Yourself a J O B
That’s right. So many people come up to me after I speak on franchising and suggest that buying a franchise is really buying yourself a job. Usually, I disagree. But, not in the case of what a Chick fil A franchisee buys.
(A high-paying job, supposedly. I read somewhere that the average yearly income for a Chik fil A owner is around $200,000. I can’t verify it, though.)
I was going to point out a few other key differences between a real franchise business and a
fake hybrid franchise business model, but I’m way too aggravated to do that now, so I hope you’ll forgive me.
But, if you want to learn more about the greatest business model ever invented, when it’s done the right way, read this franchise article.
What I’m Angry About
Today, I’m angry about the fact that Chick fil A, the food franchise with well over $3 Billion dollars in revenue, can get away with calling their franchise “opportunity” a franchise. A true franchise business allows people to invest in their own business, and have something to show for it when they’re ready to exit it. A true franchise business is a partnership. (Careful, Joel…the word “partnership” may be considered a dirty word in Chick fil A’s uptight kitchens.)
I hope that I’m not the only one in my industry that feels that Chick fil A is an embarrassment to the franchise industry-because of their butchering of the original and current franchise model. As a matter of fact, they should be thrown out of whatever franchise association they’re members of. But, not for religious reasons. I’m not going there, again. (Probably) But, I did go there in this post about the President of Chick fil A.
Hey, at least there aren’t any Cardinals jumping into the Chick fil A fray.
I’d love to hear from you. Do you think that Chick fil A offers a franchise business opportunity? Would you buy one? Why? Why not?
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