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Chicken Salad Chick Franchise Costs $865K (2023 Stats)

One of the most popular salad and healthy food franchises, Chicken Salad Chick has expanded aggressively since it started franchising in 2012 and now counts over 220 restaurants in 17 states. Beyond the yet untapped healthy food restaurant franchise market, there’s another reason why Chicken Salad Chick is so popular: its payback period.

Indeed, whilst it would cost you on average $865,000 to open a new Chicken Salad Chick restaurant, each restaurant generates on average $1.3 million in turnover per year.

How much profits can you make with a Chicken Salad Chick franchise? How much does it really cost? Should you invest in a Chicken Salad Chick franchise? We’ll answer all these questions in this article. Let’s find out!

Key stats

Franchise fee$50,000
Royalty fee5.00%
Marketing fee2% to 4%
Investment (mid-point)$865,000
Average sales$1,361,000
Sales to investment ratio63.0x
Minimum net worth$750,000
Minimum liquid capital$250,000
Source: Franchise Disclosure Document 2023

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Chicken Salad Chick

About Chicken Salad Chick

Chicken Salad Chick is an American chicken salad and casual fast-food restaurant headquartered in Auburn, Alabama.

It offers a variety of sandwiches, desserts, soups, cheese, sides, and chicken salads made with fresh, quality ingredients.

The chain was founded in 2008 by Stacy Brown. Later in 2012 Chicken Salad Chick started franchising and today has over 220 restaurants in 17 US states.

Chicken Salad Chick franchise pros and cons

Pros

  • Training and support: Chicken Salad Chick offers an extensive management and staff training program. It offers franchisees 30 hours of on-the-job training and 40 hours of classroom training to prepare them for a successful grand opening. Also, it trains them about the brand’s products and procedures to smoothly run their businesses.
  • Flexible franchise models: The franchisor has different franchise models for franchisees to choose from. It gives its franchisees the flexibility to start a franchise that best suits the available real estate opportunities in their locations
  • Site selection and construction: Chicken Salad Chick provides its franchisees with valuable real estate support. It helps them identify a convenient business location considering vehicle traffic and growth parameters such as population. It also provides them with restaurant designs, construction, and lease negotiation support.
  • Effective marketing: Chicken Salad Chick utilizes local and national marketing teams to support franchisees in attracting a strong customer base and creating loyalty
  • Simple model operations: The brand’s business concept eliminates the need for vents and fryers. It is simple and cheap for franchisees to start and run a successful Chicken Salad Chick restaurant. Franchisees can offer efficient and quality customer service.
  • Exclusive territory protection: The franchisor grants its franchisees the right to operate their businesses in a designated area. Franchisees can scale and grow their businesses in a controlled development market.

Cons

  • No financing: Chicken Salad Chick does not offer its franchisees direct or indirect financing for development or ongoing costs. Also, it does not guarantee any note, lease, or grant to any franchisee.
  • Not a passive investment: The franchisor does not allow for absentee ownership. Franchisees must be fully involved in the day-to-day operations of their restaurants.
  • Not a part-time business: The franchise can’t be run from home or a mobile unit. Franchisees must have office facilities near the location of their businesses.

Chicken Salad Chick franchise costs

On average, you may need to invest around $865,000 to open a Chicken Salad Chick restaurant.

The investment amount mentioned above is an average; indeed, the amount can vary depending on factors like location, restaurant size, etc. To illustrate, for example rent differs in different areas, and so has an impact on the lease deposit and other related costs. According to the latest FDD, the required investment you must par for can be as low as $744,500 and as high as $990,500.

You would need higher investment for a drive-thru location than other locations:

Startup costs

The initial investment covers all the startup costs needed for opening a restaurant’s operation.

In addition to the initial franchise fee of $50,000, you would also pay for:

  • Formation costs: leasehold improvements, décor package, branded merchandise, signage, computer equipment & software, furniture, fixtures, equipment, permits &licenses, security deposits, professional fees, etc.
  • Marketing costs: grand opening marketing fee 
  • Operating costs: inventory, insurance, utility deposits, first 3 months working capital, etc.
Type of ExpenditureLowHigh
Initial Franchise Fee$50,000$50,000
Formation Costs$641,200$843,200
Grand Opening$10,000$10,000
Operating Costs$43,300$57,300
Total$744,500$960,500
Source: Franchise Disclosure Document 2023

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Chicken Salad Chick

Chicken Salad Chick franchise fees

The initial franchise fee for a Chicken Salad Chick franchise is $50,000. In addition to the initial franchise fee, you must pay to the franchisor a royalty fee of 5.00% of revenues.

Chicken Salad Chick franchise revenue

On average, a Chicken Salad Chick franchise makes $1,361,000 in sales per year.

Sales revenue is growing compared to previous year(+9.36% revenue growth in 2022 vs 2021):

Chicken Salad Chick franchise profits

As per the FDD, the average Chicken Salad Chick franchise makes $123,000 in profits per year. This represents an 8.59% EBITDA margin.

Fortunately, unlike most franchises, Chicken Salad Chick provides detailed information on the cost structure of its franchises which we are summarising below.

Profit and lossAmount% Sales
Sales$1,429,041100%
COGS$495,79734.69%
Payroll$381,82826.72%
Operating expenses$99,2736.95%
Non-controllable expenses$64,0864.48%
Occupancy costs$123,5298.64%
Local marketing expenses$41,8052.93%
Brand fund fee$28,5812.00%
EBITDA$194,14313.59%
Royalty$71,4525.00%
Adjusted EBITDA$122,6918.59%
Source: Franchise Disclosure Document 2023

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Chicken Salad Chick

Disclaimer

Disclaimer: This content has been made for informational and educational purposes only. We do not make any representation or warranties with respect to the accuracy, applicability, fitness, or completeness of the information presented in the article. You should not construe any such information or other material as legal, tax, investment, financial, or other professional advice. Nothing contained in this article constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any franchises, securities, or other financial instruments in this or in any other jurisdiction in which such solicitation or offer would be unlawful under the franchise and/or securities laws of such jurisdiction.

All content in this article is information of a general nature and does not address the detailed circumstances of any particular individual or entity. Nothing in the article constitutes professional and/or financial and/or legal advice, nor does any information in the article constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other content in this article before making any decisions based on such information or other content.

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