In: Accounting
Briefly describe the franchise structure of Chick fil a, and way in which the company could improve its franchise structure to make it more attractive to potential customers.
The Chick-fil-A franchise opportunity represents an exceptional
offering in the quick-service restaurant industry. For an initial
financial fee of $10,000 selected franchisees (who we call
Operators) are granted the rights necessary to operate a franchised
Chick-fil-A Restaurant business. The Chick-fil-A franchise
opportunity requires that the individual be free of any other
active business ventures and operate the restaurant on a full-time,
hands-on basis.
Chick-fil-A Operators must successfully complete an extensive,
multi-week training program prior to taking over operation of a
franchised Chick-fil-A restaurant business. With additional
development courses and franchise support available, Chick-fil-A
Operators are equipped to handle decisions and reap the rewards of
a challenging business.
If you were to buy a Chik fil 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.