Chick-fil-A License Program Franchise Cost & 2026 FDD Data
76/100
Strongest tier
76 this brand51 Quick-Service Restaurants medianlikely 56–96: narrower with more SBA loans (very low confidence)
Higher is better · an editorial assessment, not investment advice
#276 of 3,069 graded brands
Why an A: Helped by financial health, scale, legal record and transparency. See all six factors
- Total investment
- $586K – $3.4M
- Avg gross sales
- partial, no system average
- SBA charge-off
- Not SBA-matched
Data from the FDD filing. Analysis by FranchiseVerdict · Methodology · Website · Report an error · Franchisor? Claim this listing
FranchiseVerdict summary · 2026 FDD
Per the 2026 FDD, a Chick-fil-A License Program franchise requires a total initial investment of $586K – $3.4M. Once open, the ongoing royalty is 10.0%. The 2026 FDD on file does not yield a unit-revenue figure we can publish. Verdict grade: A (Strongest tier), an editorial assessment, not investment advice.
Sources: 2026 FDD · What one unit could make and lose →
Sources, dates and evidence
FDD issued: · Last cited check: · Staleness risk: low (issued within the last 12 months)
Evidence for the headline figures: partial✓ Investment (Item 7)✓ Item 19 status✓ Units and owners (Item 20)✗ SBA loan coverage✓ Litigation (Item 3)✓ Financial statements (Item 21)✓ Franchisor identityhow this is scored4 of 4 headline figures on this page cite a page of the filing.
Overview
Quick verdict · vs Quick-Service Restaurants median
Top edge: green = better than the Quick-Service Restaurants median by more than 10%, red = worse by more than 10%, gray = within 10% or no benchmark. Source: FDD filings + SBA 7(a).
Data from public FDD filings and SBA records. Methodology
Bottom line
- RETURNSItem 19 prints gross sales for two groups and no all-unit average: College or university campus Licensed Units (306 units, average $1,523,567); Hospital, business, industry or airport Licensed Units (100 units, average $3,711,024). Gross sales, not profit.
- GROWTHIn the latest Item 20 year, the number of franchised outlets fell by 1 (18 opened, 0 closed; other Item 20 movements account for the remaining 19).
- DATAItem 19 does not yield a per-outlet annual revenue figure we can compare across brands. Ask franchisees directly for full unit-level revenue.
AT STAKEOne unit at the Item 7 midpoint: $261K a year in payments on assumed SBA 7(a)-style terms.You put in about $402K of your own cash and personally guarantee a $1.6M loan. Assumptions are labeled in Sales; not investment advice.See what one unit could make and lose
Things to check before you sign (2)
- Net -1 franchised outlets in the latest Item 20 year. Ask owners why outlets closed.
- Limited data: this page holds only part of the filing. Read the FDD itself before relying on any figure here.
Not on file here, so ask: going-concern doubt, pending litigation, SBA charge-off rate against the category median, competition inside your territory, jury-trial waiver, supplier rebates and owner-operator rule.
What to do next
Step 1: Read the FDD itself.
Free: the franchisor must give it to you at least 14 days before you sign or pay. Or look it up in a state registry (Wisconsin, Minnesota, California). What to read first.
Step 2: Talk to current and former owners.
Free: Item 20 of the FDD lists every current owner and those who left last year, most with a phone number. Questions to ask.
Step 3: Talk to an SBA lender.
Free: the SBA's Lender Match. Ask what you would personally guarantee and what the monthly payment would be. If you plan to use retirement savings, ask a CPA about the rules for that first.
Step 4: Have a franchise attorney review the FDD and agreement.
Free: your state bar's lawyer referral service can name franchise lawyers, and many offer a short first consultation. Bring the checks listed above.
Research steps, not investment or legal advice.
Can you afford it, and what does the money buy?
Entry cost (the Item 7 midpoint) is 4.1× the Quick-Service Restaurants median ($487K).
Source: FDD 2026 · Items 5–7 (fees and startup costs)
Excludes security deposits, insurance and lease or sublease payments, which Chick-fil-A says it cannot estimate.
Do you qualify? The filing states no minimum net worth or liquid capital. Ask Chick-fil-A, Inc. (Item 1: 5200 Buffington Road, Atlanta, Georgia 30349-2998) and your lender what they require, and keep living costs for the first year outside the deal.
FDD Item 7 (startup costs) · 2026 filing
Initial investment breakdown
| Cost component | Low | High |
|---|---|---|
| Working capital (first 3 months) | $149K | $951K |
| Equipment, build-out, other | $437K | $2.5M |
| Total initial investment | $586K | $3.4M |
Source: Chick-fil-A License Program 2026 FDD, Items 5 and 7[2]. “Equipment, build-out, other” is computed as total minus disclosed line items above.
Item 6 · what you pay once you are open
Ongoing fees
| Fee | Amount |
|---|---|
| Royalty | 10.0% of gross sales |
| Marketing / ad fund | 0.0% |
| Total fee loadabove the Quick-Service Restaurants median of 7.0% (heavy) | 10.0% of sales |
What do units actually make?
Source: FDD 2026 · Item 19 (sales and earnings)
Items 6 (other fees), 7 (startup costs) and 19 (sales and earnings) · assumptions labeled
What you could make and lose: one unit
What one Chick-fil-A License Program unit would ask of you, from the filing's Item 7 total and labeled assumptions.
How these figures are worked out
- Loan (assumption): 80% of the $2.0M Item 7 midpoint is a $1.6M loan, paid over 10 years at 10.5%: $261K a year. SBA 7(a)-style terms on a long-term rate; your lender sets yours.
What you put at risk
Your own cash in: about $402K Assumption (the part the loan does not cover of the $2.0M Item 7 midpoint), plus whatever anything Item 7 leaves out (its notes say what). The loan is $1.6M.
Personal guarantee. SBA 7(a) loans require a personal guarantee from anyone who owns 20% or more of the business. If the unit cannot pay, the lender can collect from you personally, which can include your savings and your home. The worst case is losing the cash you put in and still owing the rest of the loan.
Gross sales are not profit, and none of these figures is take-home pay until tax and every operating cost are paid. The assumptions are ours, not the filing's. Not investment advice.
Returns modelOne unit · several units · editable
Item 19 of the Chick-fil-A License Program FDD discloses figures for part of the system but no single average across all outlets. The return models need one gross sales figure to start from, plus the operating costs that turn gross sales into a profit. Enter your own and the calculator runs on your assumptions; nothing here is modelled until you do.
Returns model · one unit
What would one Chick-fil-A License Program unit leave you each year after the loan payment?
Not disclosed in Item 19. Enter your own gross sales assumption
Gross sales, not profit: the costs below decide what is left.
This brand's Item 19 prints cost or operating-income lines that are not on this page yet. Read them in Item 19 and enter them here.
Illustrative category typicals, not sourced to any filing, survey or sample. Replace them with figures from franchisee validation calls before you rely on the output.
Item 7 midpoint of $586K to $3.4M
Item 7's $149K to $951K additional funds are already in the total
Left after the loan payment · per year
The unit's EBITDA minus the assumed loan payment. Before tax, depreciation and any cost your inputs leave out (insurance, accounting and legal, licenses, technology fees): not take-home pay.
Gross sales are not profit. Neither the filing nor a stated assumption on this page supplies annual revenue, COGS, labor, rent / occupancy and other operating costs. Enter your own (a lease quote, owner calls) and the model runs on it.
Loan of $1.6M at 10.5% over 10 years, an assumption, not a quote. Return and payback are before tax, depreciation and the costs above. The loan usually needs your personal guarantee.
These models are for research and scenario planning only. Not investment advice. Actual results depend on your specific location, management, and market conditions. Consult a franchise attorney and accountant before signing any franchise agreement.
Item 19 · Source: 2026 FDD · filed by Chick-fil-A, Inc.
Financial performance
Item 19 prints gross sales for two groups and no all-unit average: College or university campus Licensed Units (306 units, average $1,523,567); Hospital, business, industry or airport Licensed Units (100 units, average $3,711,024). Gross sales, not profit.
Percentile ranks within Quick-Service Restaurants
Each rank is among the Quick-Service Restaurants brands that report that figure (the count is under each bar).
vs Quick-Service Restaurants medians
How Chick-fil-A License Program compares
Category median of published Quick-Service Restaurants brands that report the figure; the middle half spans the 25th to 75th percentile and n counts the brands behind it. Medians are used because a few very large systems pull an average far from the typical brand. Revenue is disclosed gross sales, not profit.
Who are you contracting with?
Chick-fil-A, Inc.
Item 1 (the franchisor) · who you're contracting with
The franchisor
Corporate structure & franchisor financials
- Legal entity
- Chick-fil-A, Inc.
- Incorporated in
- GA
- HQ
- 5200 Buffington Road, Atlanta, Georgia 30349-2998
- Auditor
- PricewaterhouseCoopers LLP
- Audited financials
Overview
About
Chick-fil-A, Inc., a Georgia corporation formed in 1964, develops limited-menu quick-service restaurants built around a boneless breast of chicken sandwich, mostly run by franchised Operators under a separate disclosure document. This License Program instead licenses Chick-fil-A Licensed Units in existing facilities such as cafeterias and food courts at sites like schools, universities, workplaces, airports and hospitals, run by Self-Operators or by Food Service Providers.
Is the system healthy?
+12 franchised outlets between the first and last year-ends Item 20 prints (412 to 424, +2.9% in total, +1.4% a year compounded).
Source: FDD 2026 · Item 20 (outlets opened, closed and transferred)
Item 20 (outlet counts) · unit dynamics
The growth chart
- Company-owned
- 0
- Corporate units in the system
Last fiscal year · Item 20 rates and pipeline
- Reacquired
- 0
- Franchisor bought back
Item 20 · franchised units at year end
Franchised units rose from 412 in 2023 to 424 in 2025
Axis does not start at zero.
Source and method
Reacquisitions and outlets moved to or from company ownership also change the count, so opened minus closed differs from the change.
Government records
SBA loan data
Matched to this brand from SBA 7(a) and 504 FOIA loan records.
No SBA loan data available for this brand.
What are the risks?
Source: SBA 7(a) FOIA · FDD Items 3, 21
Verdict grade + FDD Items 3 (litigation), 4 (bankruptcy), 8 (required suppliers), 16 (what you may sell), 21 (audited financials)
Risk and legal
Grade A: Strongest tier, 76/100 (category median 51); the full grade is at the top of the page.
How the grade is built
Why an A, factor by factor
- Financial health HelpsAudited financials; franchisor net income positive
- Unit economics NeutralNo Item 19 sales figure to set against the investment, so neutral
- Unit growth Neutral+12 franchised outlets between the first and last year-ends Item 20 prints (412 to 424, +2.9% in total, +1.4% a year compounded)
- Scale Helps424 franchised units; franchising since 1992
- Legal Helps7 matters naming the franchisor among the Item 3 matters we list (1.7 per 100 outlets)
- Transparency HelpsItem 19 discloses financial performance; audited financials
From the six scored dimensions, an editorial assessment, not investment advice. How the score is built
Bankruptcy (Item 4)
None disclosed
Audited financials (Item 21)
Yes · PricewaterhouseCoopers LLP
Franchisor revenue (Item 21)
Franchisor entity revenue (not unit-level)
What are you signing up for?
Ongoing fees run about 10.0% of sales (royalty + ad fund), before your own operating costs.
Source: FDD 2026 · Items 11, 12, 17
FDD Items 12 (territory), 15 (owner participation) and 17 (renewal, termination and disputes)
Contract and territory detail
| Protected territory | No |
|---|---|
| Exclusive territory | No |
| Non-compete (years) | 1 year |
Franchisee contacts
We hold no owner list for this brand. Item 20 of the FDD lists the current and former owners; the free FDD is the source.
Frequently asked questions
How much does it cost to open a Chick-fil-A License Program franchise?
Per the 2026 FDD, the total investment to open a Chick-fil-A License Program franchise ranges from $586K to $3.4M. This is the Item 7 total in the Franchise Disclosure Document (FDD): the startup costs the franchisor lists, such as build-out, equipment, inventory and working capital. It usually leaves out buying land or a building; Item 7's notes say what is excluded.
What do Chick-fil-A License Program franchise owners earn?
Item 19 of the Chick-fil-A License Program FDD discloses figures for part of the system but no single average across all outlets. These are gross sales figures, not profit; the Revenue section shows what the filing reports and on what basis. Item 20 of the FDD lists current and former franchisees; asking them directly is the standard way to fill this gap.
Who owns Chick-fil-A License Program?
Chick-fil-A License Program is franchised by Chick-fil-A, Inc. Source: FDD Item 1, 2026 filing.
What is Item 19 in the Chick-fil-A License Program FDD?
The FDD section where a franchisor may disclose financial performance of its outlets. Disclosure is optional and formats vary; figures are typically gross sales, which is revenue before expenses, not profit. FranchiseVerdict extracts these figures directly from the Chick-fil-A License Program FDD and qualifies whose outlets they describe.
What is Chick-fil-A License Program's franchise failure rate?
There is no published franchise failure rate, and Chick-fil-A License Program has too few resolved SBA 7(a) loans on file (fewer than 10) to show an SBA charge-off rate that would mean anything. The SBA charge-off rate is the share of a brand's resolved SBA 7(a) loans to its franchisees that the SBA wrote off, including purchased guarantees. Resolved means paid in full or charged off; active loans are excluded because their outcome is not yet known. It is a lending outcome, not a count of closed businesses. Review the turnover and closure figures in Item 20 of the FDD and speak with current and former franchisees.
How many Chick-fil-A License Program franchise locations are there?
Per the 2026 FDD, Chick-fil-A License Program has 424 franchised units and 0 company-owned (424 in all). In the latest year, the number of franchised outlets fell by 1 (18 opened, 0 closed; other Item 20 movements account for the remaining 19).
Is Chick-fil-A License Program a good franchise to buy?
FranchiseVerdict gives Chick-fil-A License Program an A Verdict grade (Strongest tier) with a verdict score of 76 out of 100 (higher is better), an editorial assessment, not investment advice. Helped by financial health (audited financials), scale, legal record and transparency. The “Why an A” section on this page lists all six dimensions and any adjustment. Speak with current franchisees before making any investment decision.
Other Quick-Service Restaurants franchises
Similar investment first, then by grade
This information is provided for research purposes only and does not constitute financial, legal, or investment advice. Verify all figures with the franchisor's current Franchise Disclosure Document before making any investment decision.