Humphrey Yang: How Much Money You’ll Make From Running a Chick-fil-A Per Year

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Looking to own a franchise and earn some decent money? Chick-fil-A is known for its top-quality fast food and exceptional hospitality, but becoming a franchise owner isn’t as easy (or maybe even as lucrative) as one might assume. 

In a TikTok, financial influencer Humphrey Yang broke down what it really takes to open one of these fast-food locations and how much you might make per year from running one.

Alternatively, learn how this moving franchise turned into a million-dollar business.

The Franchise Fee Is Relatively Low

According to Yang, Chick-fil-A’s franchise fee is surprisingly low. You’ll only need $10,000 up front. To compare, McDonald’s and KFC charge a franchise fee of $45,000 or 4.5 times more, according to Franchise Direct.

Yang explained that Chick-fil-A offers a franchise relationship, which means it builds the store and gives the franchisee the products and training in exchange for a percentage of sales. But how much of a percentage?

Chick-fil-A Takes a Bigger Share of Your Earnings

Yang said while other fast-food franchises like KFC take around 5% of sales, Chick-fil-A takes 15% off the top. On top of that, you split the remaining profit 50/50 with the company.

Additionally, as an operator, you aren’t building equity in the business, according to Franchise Brokers Association. And even though you’re running the store, you’re doing it under Chick-fil-A’s ownership and rules. Another drawback is that the company only allows franchisees to run one restaurant, per Nation’s Restaurant News.

It’s Very Difficult To Be Accepted as a Chick-fil-A Operator

According to Yang, fewer than 1% of applicants are accepted. He said it’s probably easier to get into Stanford than to be accepted as a Chick-fil-A operator. 

Having experience as a Chick-fil-A team member might improve your chances, however. According to the company’s official website, in the past two years, 76% of those selected as owner-operators had prior work experience as a team member. 

Also, if you are accepted, expect to work long hours. Yang pointed out that operators are expected to be hands-on, being physically present at the store for 60 hours per week. 

What You’ll Actually Earn as a Chick-fil-A Franchisee

Yang said you’ll take home between 5% and 7% of store revenue. He further explained that if you’re operating a location that brings in the average Chick-fil-A revenue of $9.3 million, 5% works out to about $465,000 a year. Chick-fil-A’s revenue is well above competitors like McDonald’s, with the average store bringing in about $3.5 million per year, according to SharpSheets.

Is Running a Chick-fil-A Worth It?

If you operate a top-performing store and earn 5% of net revenue, you can make upwards of $450,000 a year. However, you’ll have to be willing to work 60-hour weeks and be satisfied with the franchise arrangement Chick-fil-A offers, including no opportunity to build equity or own more than one franchise. 

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