2026 FDD Issued Mar 31, 2026 Minnesota Commerce (CARDS)
Chick-fil-A Franchise Cost (2026)
Chick-fil-A’s 2026 Franchise Disclosure Document (FDD) lists an initial franchise fee of $10,000 (Item 5). Item 7 prints an estimated total investment of $317,521 – $3,463,155, but the printed total and the listed expense lines do not reconcile, so a cleared cost range is not available. This record was published provisionally before independent verification was complete. Read the printed lines and the unresolved difference.
Read the source-review hold before using these figures.
- Total investment
- $318K – $3.46MPrinted Item 7 total; does not reconcile
- Franchise fee
- $10KItem 5 source and terms
- Base Operating Service Fee
- 15% of Gross ReceiptsItem 6 conditions and fee bases apply
- Brand fund
- 0% – 3.25% of Gross ReceiptsItem 6 conditions and fee bases apply
What stands out about Chick-fil-A
Part of the first-business fee is maintained as a working-capital deposit and reconciled when the relationship ends. It is already within that fee, not another investment line. Item 7 distinguishes this initial cash payment from inventory, rent, equipment and insurance expenses paid after opening. Those later expenses reduce restaurant receipts and profit even though they are not all due before opening. The table's high-end line sum also conflicts with its printed total.
Operator compensation is not an ordinary deductible expense in Item 6's Operating Profit definition. The subsequent Net Profit formula differs between the initial and additional businesses, and includes equipment and business-service offsets before the profit-based service fee. Retained advances can create offsets against future profit. Neither the advertised sales average nor an unadjusted addition of fee percentages measures take-home income.
Only domestic restaurants operated by franchise Operators throughout the reporting year enter the selected Item 19 sales samples. A restaurant run by Chick-fil-A or its affiliates at any time during that year is excluded, even if an Operator runs it at year-end. Captive venues and licensed units are also outside the reported samples. The non-mall average of $9,161,239 cannot stand in for the separately reported mall or delivery-kitchen figures.
The initial franchise term ends at calendar year-end or earlier lease expiry, rather than after a full year from signing. Item 17 then provides automatic annual extensions unless timely written notice is given, subject to its conditions and state addenda. This short agreement cycle sits alongside leased premises and equipment; the restaurant's sales history does not establish a guaranteed duration of operation.
What are the initial franchise fees and financial requirements for Chick-fil-A?
Item 5 lists an initial franchise fee of $10,000 for Chick-fil-A. Check the cited Item 5 for payment timing, discounts and format-specific terms.
Item 5 charges $10,000 for the first traditional or captive-venue business, payable in full at signing. Of that fee, $5,000 is held as a working-capital deposit, not an extra charge. It must be maintained while the Operator is franchised. After termination or nonrenewal, final reconciliation returns the deposit less specified unpaid or improperly paid costs, expenses and known losses; the remainder of the initial fee is nonrefundable. Each additional traditional, captive-venue or delivery-kitchen business costs $5,000 when its Additional Business Amendment is signed; that fee is nonrefundable, and Chick-fil-A need not offer additional businesses (PDF page 26).
Source: Chick-fil-A 2026 FDD, Item 5, PDF p. 26.
This record lists no minimum net worth or liquid-capital requirement for Chick-fil-A, because no sourced figure has been recorded. Ask the franchisor for its current financial qualifications in writing.
How much does it cost to open a Chick-fil-A franchise? (Item 7)
Source: Chick-fil-A 2026 FDD, Item 7, PDF p. 43.
The printed totals or listed expenses below do not reconcile. These are the amounts the FDD prints, not a source-cleared investment range. Read the source note before using any budget figure.
| Expense Category | Low ($) | High ($) |
|---|---|---|
| Initial Franchise Fee | $10,000 | $10,000 |
| Opening Inventory | $22,950 | $107,000 |
| First Month's Rental of Equipment | $750 | $5,000 |
| First Month's Lease/Sublease of Premises | $3,500 | $100,655 |
| First Month's Insurance Expense | $321 | $22,500 |
| Additional Funds | $280,000 | $3,463,155 |
| Printed Item 7 total (FDD printed amount, PDF p. 43) | $317,521 | $3,463,155 |
For comparison, the median high-end investment among 25 restaurants & food records without a source-review hold is $1,297,100.
PDF page 43 prints Additional Funds at $280,000-$3,463,155 and total investment at $317,521-$3,463,155. The printed high line amounts sum to $3,708,310, $245,155 above the printed high total. Both source amounts are preserved; clarification remains necessary after provisional publication. The cover describes a traditional unit, but Item 7 Note 1 says this single table covers free-standing, mall, in-line, drive-through-only, captive-venue and delivery-kitchen restaurants, with some captive/delivery costs below the printed lows. No separate all-in alternative-format totals are stated. Item 7 Note 2 calls the franchise fee the only initial out-of-pocket investment required to begin operation; the other expenditures are due after opening and reduce restaurant receipts and actual profit. The $5,000 working-capital deposit is already part of the $10,000 first-business fee, not another startup line. Additional Funds covers the first three months, including repairs, maintenance and utilities, but excludes Operator draws, disbursements and distributions. High-cost flagship locations can exceed estimates. Insurance premiums paid to the program administrator remain costs even though they are handled separately from some Gross Receipts deductions (PDF pages 26 and 43-45). Chick-fil-A pays the cost of providing the initial Operator training program but does not compensate the Operator during training; the FDD does not state that every personal training expense is covered (PDF page 60).
What ongoing royalties and fees does Chick-fil-A charge? (Item 6)
Source: Chick-fil-A 2026 FDD, Item 6, PDF p. 27.
Item 6 of Chick-fil-A’s 2026 FDD lists the charges below. Recurring charges and charges triggered by a transfer, renewal or other event have different conditions. Read each fee’s basis and notes before comparing rates.
How to read an Item 6 fee table.
| Fee Type | Amount / Rate | Payment Frequency | Notes & Source |
|---|---|---|---|
| Advertising | 0% – 3.25% of Gross Receipts | When it applies | The national fund currently charges 0% under an internal policy that can change; the contractual contribution ranges from 0% to 3.25% of Gross Receipts. If a majority of Operators in the area vote for a local or regional fund or initiative, participation and contributions are required, including for applicable captive venues, delivery kitchens and food trucks. The national percentage range is not stated as a cap on those separately voted charges (PDF pages 27 and 58). (Item 6, PDF p. 27) |
| Advertising Support and Services Fee | Varies | When it applies | Optional services selected by the Operator, not a mandatory hourly payment by every owner. The current in-house blended rate is $100 per hour plus print-production, material and other applicable costs. Note 11 limits Chick-fil-A's annual increase to 35% of the prior year's fee where no alternative formula or maximum is stated (PDF pages 27 and 42). (Item 6, PDF p. 27) |
| Additional Business Fee | $5,000 | When it applies | Each additional traditional, captive-venue or delivery-kitchen business costs $5,000 at signing its Additional Business Amendment. Additional opportunities are discretionary and the fee is nonrefundable (PDF pages 26 and 28). (Item 6, PDF p. 28) |
| Business Services Fee | $300 per month | Every period | Current monthly business-services charge, subject to change; services offered by Chick-fil-A or its approved supplier must be used. It is deducted in the Base Operating Service Fee formula, not added again to an unadjusted 15% charge. Note 10 permits actual third-party cost increases for passed-through services; Note 11 limits Chick-fil-A-provided services to a 35% annual increase where no alternative formula or maximum is stated (PDF pages 28, 33, 42 and 47). (Item 6, PDF p. 28) |
| Rent (Traditional Unit) | Varies | When it applies | Monthly, traditional locations only. The printed $3,500-$100,655 range describes the lowest and highest approximate monthly rents paid by individual Operators during 2025, including applicable percentage rent, not a fixed future quote. The lease's site-specific formula and additional taxes, common-area maintenance and other charges apply; high-cost sites can exceed that range. An internal policy limits traditional rent excluding equipment to 6% of annual Gross Receipts while the policy remains in effect, but excludes other additional charges, creates no contractual right and can change or be revoked. It does not cover captive venues or delivery kitchens (PDF pages 36-40). (Item 6, PDF p. 28) |
| Occupancy Charge (Captive Venue Unit) | 4% – 30% of Gross Receipts | When it applies | Captive-venue alternative to traditional rent. The site-specific Concession Agreement may use a percentage, stated dollar charge or commission structure. The 4%-30% estimate includes applicable premises, venue-supplied equipment/services and common-area charges; actual costs can be higher. Normally passed through without markup, except that capital-recovery incentives can require the Operator to pay baseline rent above Chick-fil-A's temporarily reduced payment. The traditional rent policy does not apply (PDF pages 40-41). (Item 6, PDF p. 28) |
| Use/Occupancy Charge (Delivery Kitchen Unit) | 4% – 30% of Gross Receipts | When it applies | Delivery-kitchen alternative to traditional rent. The DK Lease may use percentage, dollar or commission charges. The 4%-30% estimate covers applicable premises, delivery and marketing commissions, venue-supplied equipment/services and common-area charges; actual costs can be higher. Normally passed through without markup, except capital-recovery incentives may require baseline fees above Chick-fil-A's temporarily reduced payment. The traditional rent policy does not apply (PDF pages 40-41). (Item 6, PDF p. 29) |
| Food Truck Usage Fee | $2,100 – $7,500 per month | When it applies | Conditional on a food-truck agreement. This usage fee replaces the third-party lease rental payment, rather than adding that rental again. Mileage surcharges, other pass-through costs, applicable taxes and returning the truck to good order remain additional. Note 10's passed-through increases track actual third-party increases (PDF pages 29 and 42). (Item 6, PDF p. 29) |
| Food Truck Insurance Fee | $305 – $1,500 per month | When it applies | Food trucks only. Covers the truck and its contents/inventory but not Operator-owned contents or inventory. Subject to insurance programs, premiums and periods; passed-through increases follow Note 10 (PDF pages 29 and 42). (Item 6, PDF p. 29) |
| Insurance | $321 – $22,500 per month | Every period | Monthly estimate, subject to insurance programs, premiums and periods, not a fixed premium for every restaurant. Required coverage includes workers' compensation, general liability, auto liability and employment-practices liability through the designated carrier/program administrator, with specified state workers' compensation exceptions. Chick-fil-A may change coverage requirements and receives no commission on the Operator's insurance purchases. Item 5's separate annual estimate is not an additional policy bill to stack on this range (PDF pages 26, 29 and 48-51). (Item 6, PDF p. 29) |
| Equipment Rental | Varies | Every period | Current monthly package rates: free-standing/in-line $5,000; drive-through-only $4,000; mall $3,000; captive venue $750-$3,000; delivery kitchen $2,500-$5,000. Rentals are periodically redetermined from fair market rental value, not permanently fixed at those rates. Venue-provided equipment can reduce charges; larger venues can cost more. Equipment taxes and other pass-through costs are additional; food-truck equipment is separate. Rental is an offset in the Base Operating Service Fee formula. Note 12's rental methodology, not Note 11's 35% cap, controls equipment charges (PDF pages 30, 33 and 42-43). (Item 6, PDF p. 30) |
| Hardware and Software Support; High-Speed Internet Access | Varies | When it applies | Item 6 estimates $9,500-$20,000 annually, payable as incurred and subject to change, rather than a uniform package for every Operator. Captive or delivery-kitchen venues can have reduced Chick-fil-A charges when the premises provider supplies required POS services. Note 11 limits Chick-fil-A's annual increase to 35% of the prior year's charge where no alternative formula or maximum is stated. Item 11 separately describes venue-provider fees and leased hardware (PDF pages 31, 42 and 59-60). (Item 6, PDF p. 31) |
| Fines – Minimum Standards and Procedures | Varies | When it applies | Conditional noncompliance charge capped per month at the affected business's defined Additional Profit, not a fixed fine. The table refers to Note 1(g), but the Additional Profit definition appears in Note 2(g) on PDF page 34; that source cross-reference discrepancy is retained (PDF pages 31 and 34). (Item 6, PDF p. 31) |
| Indemnification | Varies | When it applies | Reimbursement for covered claims arising from restaurant operations or damage to the site. (Item 6, PDF p. 31) |
| Base Operating Service Fee | 15% of Gross Receipts | Every period | Monthly Base Operating Service Fee equals 15% of Gross Receipts less equipment rental and the Business Services Fee. Gross Receipts excludes sales tax and includes an associated food truck. Only a portion of the resulting fee is allocated as a royalty. Equipment/services offsets must not be charged twice in an all-sales model (PDF pages 33-35). (Item 6, PDF p. 33) |
| Additional Operating Service Fee | 50% of defined Net Profit | Every period | 50% of defined monthly Net Profit, not 50% of gross sales. Initial Business Net Profit deducts the base fee, $1,000 monthly Base Profit and applicable Base Profit/Service Fee Offsets; additional businesses have no Base Profit entitlement. Operating Profit excludes the Operator's own compensation, excess family wages and both service fees from deductible ordinary expenses. The $1,500 maximum Extra Profit is an advance subject to offsets and arrears, not promised take-home income (PDF pages 33-35). (Item 6, PDF p. 34) |
| Credit Card, Gift Card and Related Fees | Varies | When it applies | Vendor-specific, nonrefundable processing and related charges on card transactions. Affiliate CFA Servco passes through third-party gift-card fees each time a customer uses a gift card; direct vendor contracts may be required. Note 10's passed-through increases track actual third-party increases (PDF pages 31 and 42). (Item 6, PDF p. 31) |
| Highway Signage | Varies | When it applies | Actual fabrication cost plus annual municipal highway-signage expense, where available. (Item 6, PDF p. 32) |
| Interest on Late Payments | Varies | When it applies | Maximum legal rate, or if none, 1.25% per month, compounded monthly after the due date. (Item 6, PDF p. 32) |
| Cash Handling System Services | $85 – $450 per month | When it applies | Monthly vendor-service estimate, conditional on location, provider availability, exemption and premises collection arrangements. Not paying Chick-fil-A does not mean free service: similar direct vendor or venue charges can apply. Non-warranty safe repairs are additional, unpriced here. Note 10's passed-through increases track actual third-party increases (PDF pages 32 and 41-42). (Item 6, PDF p. 32) |
| Reimbursement of Cost of Performance | Varies | When it applies | Costs of performing obligations the Operator fails to perform, together with interest. (Item 6, PDF p. 32) |
| Holdover Liquidated Damages | Varies | When it applies | Conditional continued occupancy after expiration or termination: double base and percentage rent, without waiving other remedies. Item 6 describes non-captive locations, while Item 10 expressly excludes captive venues and delivery kitchens; the broader Item 6 wording is not treated as universal applicability (PDF pages 32 and 56). (Item 6, PDF p. 32) |
| Banking-Related Fees (Item 6 Note 5) | Varies | When it applies | A required cash-handling bank account must allow payment of banking-related fees. Approved-provider, exemption and venue arrangements differ; no uniform periodic bank tariff is stated. This is distinct from the vendor Cash Handling System Services row, not an invented additional fixed monthly charge (PDF pages 35-36). (Item 6, PDF p. 36) |
| Promotional Campaign Materials and Devices (Item 11) | Varies | When it applies | Operators must participate in required promotional campaigns and the CFA One program. At Chick-fil-A's election, costs of buying, leasing and installing materials/devices, giveaway items and gift cards may fall on the Operator; no uniform tariff is stated. Coupons and food/drink giveaways may not be reimbursed. This is separate from fund contributions, not a priced universal monthly payment (PDF pages 58-59). (Item 6, PDF p. 59) |
| Shared Marketing Asset Leases (Item 11) | Varies | When it applies | Local/regional Operator cooperation can include leases of marketing assets from Chick-fil-A for shared use. A majority-approved initiative requires participation and contribution. No standard asset lease rate is stated, and this is not assumed payable by every Operator every period (PDF page 58). (Item 6, PDF p. 58) |
Explore annual fees and payback assumptions
This fee schedule cannot be reduced to the calculator’s simple sales-based formula. Enter your own assumptions and check them against the Item 6 terms.
Chick-fil-A startup investment and modeled fees over 10 years
A source check placed this record on review hold. Automatic fee estimates are withheld until the outstanding issues are resolved. Operating-service fees use Gross Receipts and specially defined monthly profit, including equipment/business-service offsets, Operator compensation exclusions and arrears. Rent, equipment, technology and venue arrangements also vary. An annual sales average does not determine an all-in fee bill or Operator income; overlapping offsets and third-party expenses must not be stacked twice. See the fee amounts and definitions in Item 6 above. Open the calculator with your own assumptions.
Item 20: Chick-fil-A franchised outlet history
Source: Chick-fil-A 2026 FDD, Item 20, PDF p. 92.
Item 20 Table 3 reports 2,795 franchised outlets at the end of 2025. The company-owned table reports a further 68 outlets.
| Year | Franchised at Start | Opened | Reported Exits | At End | Franchise Exit Rate (%) |
|---|---|---|---|---|---|
| 2023 | 2,331 | 255 | 92 | 2,494 | — |
| 2024 | 2,494 | 243 | 108 | 2,629 | — |
| 2025 | 2,624 | 278 | 107 | 2,795 | — |
Calculated outlet totals, net growth and exit rates are withheld because this record has not cleared the current Item 20 source checks. The table retains the outlet counts printed in Item 20. Read the unresolved source issues.
Reported exits include terminations, non-renewals, franchisor reacquisitions and other cessations. A reacquired outlet may continue operating. How we calculate the exit rate. How to read the Item 20 outlet tables.
Franchised totals come from Table 3 on PDF page 92, company-owned endings from Table 4 on page 100, and ownership transfers from Table 2 on page 87. These are domestic franchised Operator/company restaurants; the separate licensed-unit system is not added. Table 3 describes beginning/end counts by fiscal year. Opened includes both new restaurants and company-operated restaurants purchased by an Operator, not new construction alone. Terminations has the source's narrower definition of early franchisor termination without consideration; zero is not a claim that no Operator relationships ended. Reacquisitions are ownership changes, not necessarily physical shutdowns. The printed 2024 franchised ending count of 2,629 differs from the 2025 start of 2,624; company-owned counts change from 55 at 2024 end to 60 at 2025 start. No explanation is supplied here, so those values are retained without inventing a reclassification. Table 4's reacquired counts of 92, 108 and 108 also differ from Table 3's 84, 102 and 99; passing individual-year balances does not reconcile those source tables (PDF pages 86-87, 92 and 100).
How much do Chick-fil-A franchise owners make? (Item 19)
Source: Chick-fil-A 2026 FDD, Item 19, PDF p. 84.
Item 19 of the 2026 FDD reports average Sales Volume - Non-Captive Venue Non-Mall Restaurants of $9,161,239 (Calendar year 2025, Approximately 2,302 domestic non-captive-venue non-mall franchised Operator restaurants open for a full calendar year and operated by Operators throughout 2025). Chick-fil-A’s Item 19 reports sales but no profit, costs or owner pay. Rent, payroll, supplies, loan payments and Item 6 fees come out of sales before an owner is paid, so these figures cannot show what an owner earns.
Read the source-review hold before using this figure.
See every Chick-fil-A Item 19 figure, with its period and sample.
Payback calculator (enter your own assumptions) Check any inputs against this record’s Item 7 startup costs and Item 6 fee rules.
How to interpret Chick-fil-A’s Item 19 figures and sample limits.
How long does it take to open a Chick-fil-A franchise? (Item 11)
Source: Chick-fil-A 2026 FDD, Item 11, PDF p. 60.
Item 11 of the 2026 FDD states the time from signing the franchise agreement or paying the initial franchise fee to opening: approximately six to twelve weeks.
Item 11 says Chick-fil-A locates and purchases or leases the premises for a proposed restaurant before it contracts with an Operator to run it.
Comparing other franchise records
An unresolved startup-total conflict prevents matching this record to other brands by investment amount. Browse the franchise directory and read the format and source qualifications on each record.
Compare other restaurants & food franchises
Frequently Asked Questions about Chick-fil-A
This record has unresolved source-review issues and was published provisionally. Read the specific issues before using these answers.
- Is the Chick-fil-A investment estimate all due before opening?
- No. Item 7 Note 2 describes the initial franchise fee as the only initial out-of-pocket investment required to begin operation. Inventory, rent, equipment and insurance expenses are paid after opening and still reduce receipts and profit. The printed Item 7 total is not an upfront cash requirement; its high-end line sum also conflicts with the printed total, as explained above.
- What is the Chick-fil-A royalty fee?
- Item 6 starts the Base Operating Service Fee at 15% of Gross Receipts of Gross Receipts, then deducts equipment rental and Business Services Fees. Only part is allocated as a royalty. An additional service fee uses defined monthly Net Profit, not sales. Owner compensation exclusions, offsets and arrears prevent an accurate fee or income estimate from sales alone.
- How much do Chick-fil-A franchise owners make?
- Item 19 reports $9,161,239 average annual sales for eligible domestic non-captive-venue non-mall franchised Operator restaurants operating throughout 2025. Mall restaurants and delivery kitchens have separate samples. Restaurants operated by Chick-fil-A or its affiliates at any time that year are excluded. Sales are not profit, and the FDD supplies no actual Operator-income average.
- How long is the Chick-fil-A initial franchise agreement?
- Item 17 ends the initial term at the earlier of December 31 in the signing year or lease expiry. It is not necessarily a full year. Annual extensions are automatic unless either party gives written notice at least 30 days before the term ends, subject to the agreement and applicable state addenda. See PDF pages 74 and 78.
Sources
Chick-fil-A, Inc. Franchise Disclosure Document, issued March 31, 2026, as filed with the Minnesota Commerce (CARDS). Read the source FDD PDF. How to get this FDD yourself.
- Item 5: cited PDF p. 26
- Item 6: cited PDF p. 27
- Item 7: cited PDF p. 43
- Item 19: cited PDF p. 84
- Item 20: cited PDF p. 92
Page references for Chick-fil-A use the PDF viewer's digital page count, not printed page headers. Some viewers download the document instead of opening the referenced page.
If the state document viewer does not open, use Minnesota Commerce's public filing instructions to look up the filing by franchisor name and document date.
Document & verification changelog
- October 29, 2026: Record updated.
- October 28, 2026: Source review hold recorded. Unresolved corrections are listed in this source section.
- October 9, 2026: Provisional publication approved per owner directive: Owner-directed provisional publication before independent source verification was complete.
- October 9, 2026: Initial cost profile published from the 2026 Franchise Disclosure Document (issued March 31, 2026).