Can You Finally Open a Raising Cane’s Franchise? (2022 Fees + Cost)
You might be wondering how much it costs to start a raising cane’s franchise, or if it is possible to open one, it’s necessarily not a bad question as becoming a part of this fast food company is a success
The fast-food restaurant company Raising Cane’s Chicken Fingers, also known simply as Raising Cane’s, is recognized for its chicken finger meals.
Todd Graves and Craig Silvey founded this franchise on August 28, 1996, in Baton Rouge, Louisiana. Currently, Raising Cane has locations in all 50 states, including Texas and Ohio.
How Much Does it Cost to Start a Raising Cane’s Franchise?
Raising Cane’s does not currently accept any new franchise or development possibilities, according to the company’s website.
The company doesn’t have any imminent plans to franchise new locations; instead, it concentrates on growing corporate stores and helping its current franchise partners.
There are just six franchise partners for Raising Cane’s, yet they collectively run 90 franchise sites.
Even though this restaurant is not currently available for franchising, we will nonetheless be analyzing Raising Cane’s sales, income, and other financial data.
By doing this, you’ll be ready to take action if the business decides to provide franchise opportunities once more in the future.
Financial Requirements and Fees
How much would a Raising Cane’s franchise cost is the first thing a prospective franchisee will want to know. Below is a list of approximate costs and financial requirements for Raising Cane’s franchise based on similar business models.
But first, allow us to define a few of the financial words we’ll use throughout this paragraph.
Liquid Capital: The total quantity of cash you will need to have on hand and be able to use at any moment
Net worth: The value of all your financial and non-financial assets less the total amount of your unpaid liabilities.
Total investment: is the sum of all the money that will need to be invested in the franchise over time in order for it to be operational.
Franchise fee: a sum you must pay to the franchisor in order to use its name and resources.
| Fees or Expenses | Financial Amount |
| Liquid Capital | $500,000 |
| Net Worth | More than $1 million |
| Total Investment | $1,000,000 – $1,937,500 |
| Franchise Fee | $45,000 (Previous Fee) |
For the avoidance of doubt, this is a rough estimate of what it may cost to launch Raising Cane’s in the event that franchisees are permitted to join the company’s ranks in the future.
What You Should Know
Keep in mind that you should thoroughly analyze the total cost of the business before choosing a franchise opportunity.
Although some franchise possibilities may have inexpensive franchise fees, they may also have high continuing expenditures, such as those for technology, payroll, and training.
The name, logo, and products of Raising Cane are off-limits without this license, so the potential franchisee must first get one.
The price of their license fee was $45,000 prior to the corporation pausing the acceptance of new franchisees. This cost is comparable to that of other restaurant chains.
Average Sales/Revenue per year
The revenue or quantity of income that may be made is one of the most commonly questioned subjects by prospective franchisees, which is logical given that everyone wants to see a return on their time and financial commitments.
The yearly revenue of Raising Cane’s USA surpasses $500 million, and the business has more than 1,000 employees.
With an average sales per unit of $3.6 million, the fast-casual chain’s systemwide yearly sales have more than tripled to $1.5 billion in recent years. The quantity of chicken wings being offered is enormous.
Raising Cane’s Franchise Facts
In Baton Rouge, Louisiana, Todd Graves, and Craig Silvey established Raising Cane’s, a fast-food chain with a focus on chicken fingers.
Students Silvey from LSU and Graves from the University of Georgia were both enrolled in a course on creating business plans. Graves wrote the business plan, and Silvey turned it in and received a C- minus.
The idea did not underwhelm professor Silvey. When financial sources dried up, Graves decided to make the money himself.
The two business owners built their first restaurant in Baton Rouge, close to the LSU campus, in 1996 after several years of saving.
More Facts You Should Know
Raising Cane’s offered a small menu and found the perfect market for its unique business approach.
They only offer a small, condensed menu in order to serve very high-quality food swiftly and easily. Recent Datassential Firefly 500-plus figures ranked Raising Cane’s No. 69 among domestic brands.
Even during government-mandated lockdowns that damage other restaurants, Raising Cane’s locations have shown to be resilient.
While some restaurants temporarily shuttered, others switched from dine-in to pickup and takeout service in March 2020.
As of July 2020, some restaurants restored their dining rooms, but Todd Graves said the company was not in a rush to do so.
How Much Profit Does a Franchisee of Raising Cane’s Make Per Year?
The fast food restaurant chain’s average annual systemwide revenues, which tripled to $1.5 billion in just the last few years, are $3.6 million per unit.
It’s critical to realize that different factors affect your profitability as a Raising Cane’s franchisee.
The price of commercial leases in your area, local product demand, labor costs, and the efficiency of your operations management are all things to take into account.
Lease rates vary greatly across different locations. Franchisees in regions with lower lease rates consequently typically pay less for a lease, which makes them more profitable than franchisees in regions with higher lease rates.
Advantages of Franchising Raisin Cane’s
Before moving forward with your plans to franchise this firm, there are many things to take into account.
Owning a Raising Cane’s franchise has benefits and drawbacks, just like running any other business.
We’ve highlighted the advantages right here to provide you with more information as you decide.
Simple Menu
The menu at Raising Cane’s is as basic as they come: chicken fingers, fries, coleslaw, Texas Toast, and the special Cane’s sauce. You could be wondering how it is advantageous.
In actuality, shorter menus increase the likelihood that customers will remember why they chose a certain restaurant.
While customers will fast forget the five-page menu, they will recall the restaurant’s signature dishes.
Nowadays, a lot of restaurants are trying to differentiate themselves by focusing on their quality rather than the size of their menus.
Training and Financing
Raising Cane’s franchise offers its franchisees a number of benefits. The franchisee’s chances of success are meant to be increased by these.
Franchisees receive training to aid in their initial success. Wherever the franchisee chooses, both classroom and hands-on training are offered.
Additionally, they provide loans to their franchisees as an additional benefit. Financing typically pays for a range of costs, including veteran discounts and franchise fees, among others.
Raising Cane’s offers franchisees financing benefits, however, it is not clear what kind of financing they get. Once you’ve been approached for further discussions, you’ll need to find out by speaking with customer support.
Quality Company
The average unit volumes (AUVs) for Raising Cane are close to $3.6 million. McDonald’s generates AUVs of roughly $2.8 million, in contrast. Several factors may have contributed to this expansion.
It is claimed that it may be related to Raising Cane’s uncomplicated menu, which consists of chicken fingers, fries, coleslaw, Texas toast, and the restaurant’s signature Cane’s sauce.
Challenges of Franchising Raising Cane’s
There are some drawbacks to having a Raising Cane’s franchise in addition to its positives, so it’s critical to research these concerns before franchising.
In order to help you decide more wisely, we’ve highlighted some of the difficulties a Raising Cane’s franchise owner could encounter
Slower Rate of Outlet Growth
The Net Franchise Growth Rate is a reliable metric that tells us whether a business is worth franchising or not.
This will show you how many franchisees are opening compared to those that are closing. It is logical to conclude that there are problems with the brand if there are more closings than openings for the brand.
The net franchise growth rate for Raising Cane is positive at 31. It is far less than the average rate of 97, though. This may indicate a slower rate of growth rather than always a flawed system.
Analyzing the system’s growth rate is crucial when evaluating any franchise organization.
The franchise needs to experience important growth in order to be long-term viable, but it shouldn’t grow too quickly in order to avoid the challenges that come with it.
High Financial Requirement
Their expensive franchise price is another point to be made. In comparison to other franchises with a stronger track record, their franchise costs a little more.
It is strongly advised that you carefully weigh all the benefits and drawbacks prior to signing a franchise agreement with Raising Cane’s, or any other business for that matter.
You can anticipate a $45,000 franchise fee and a total investment cost of $768,100 to $1.94 million if you decide to franchise Raising Cane’s.
In contrast, one of its main rivals, Popeyes Louisiana Kitchen, only charges a $30,000 franchise fee and requires an overall investment of $500,000 to $1.00 million.
Currently not Accepting any Franchise
As of this writing, Raising Cane’s franchises are still not available. We will be the first to let you know if this ever changes.
Is the Raising Cane’s Franchise Right for you
Even though they are not currently selling new licenses, understanding what it takes to get started is always a good idea for anyone interested in opening a Raising Cane’s franchise.
It might be a great opportunity if Raising Cane’s allows new franchisees to enter the market because they have the potential to be very successful both domestically and internationally.
It’s crucial to select a license from a business that will collaborate with you to succeed. The outcome of your franchise could depend on how much research you put into it.
What is an Alternative to Raising Cane’s Franchise?
You can try Bojangles’ International or Church’s Chicken if you can’t wait for Raising Cane’s to reopen for franchising.
The menu items at both eateries are comparable to those of Raising Cane’s. Bojangles’ International charges a $25,000 franchise fee, whereas Church’s Chicken charges a $15,000 fee.
Conclusion
Even though, Raisin Cane’s is not accepting new franchisees for now. Hopefully, in the future, you might find this information useful.
There’s no harm in trying one of the successful fast-food companies, you might just get lucky.
