What is a Chick-fil-A royalty fee?

The royalty fee is structured as a “Base Operating Service Fee” which is the amount by which 15% of the gross receipts of the Chick-fil-A Restaurant exceeds the restaurant’s equipment rental fee. Additionally, there is an “Additional Operating Service Fee” of 50% of the Operator’s net receipts.

Does Chick-fil-A charge an advertising fee?

Franchisees should also expect to pay a small commission anytime a customer uses the Chick-Fil-A rewards app. Chick-fil-A has not charged an advertising fee since 1989 but has the right to charge up to 3.25%. Or if agreed upon by certain local and regional areas an advertising fee may be enforced.

How much does it cost to open a Chick-fil-A franchise?

Chick-Fil-A Franchise Fee charges $10,000 for the initial fee and $5,000 for any additional franchise unit. Of the initial fee of $10,000, $5,000 is considered working capital and can be received back at the end of the term under the franchisor’s discretion. It is rare for a Chick-Fil-A franchise owner to operate more than two locations.