What’s the Exact Cost to Open a Church’s Chicken Franchise? (2022)
There are over 2000 Church Chicken franchise outlets worldwide. While the fast-food chain is known best in the US, it has expanded to over 26 countries. People all over the world can’t get enough of this classic restaurant’s crunchy chicken. Do you want to know the exact cost of starting a Church Chicken franchise? then read through.
Exact Cost of Starting a Church’s Chicken Franchise?
The total capital investment is estimated to be $1.10 million. The total cost may be higher based on the location and size of the restaurant. Franchisees pay royalties of 5% of sales revenue and a 5% advertising fee.
After learning about the financial requirements, are you still interested in franchising a Church’s Chicken?
In this post, we shall give details on the financial requirements of the restaurant, as well as the advantages and challenges you may face as the owner of this church chicken franchise.
Fees and Financial Requirements
The following are the basic requirements to own a Church’s Chicken franchise:
|Total Investment||$191,300 to $1.101, 6000|
The liquid capital required to open a Church’s Chicken franchise is $650,000. Potential franchisees must be worth more than $1.5 million. Church’s Chicken charges a $15,000 licensing fee and a $20,000 development fee.
Before buying any franchise, you should be familiar with the following basic monetary terms:
1. Franchise Fee
The franchise fee is the sum you must pay to the franchise owner in order to use its brand name.
2. Liquid Capital
This is the total amount of money you have available, also known as the cash required.
3. Net Worth
Net worth is the total value of your non-financial and financial assets minus the total value of your liabilities.
4. Total Investment
The total investment is the money a franchisee needs to invest in the franchise to start operations.
The projected initial investment ranges from $1,500 for a 1,500-square-foot end-cap restaurant to $2,200 for a 2,200-square-foot free-standing restaurant and drive-thru services.
It is helpful to spend the extra money upfront to find a location with a drive-through. According to some studies, Americans spend an average of $1,200 per year in the drive-thru lane.
Annual Average Sales
Church’s Chicken franchise is a growing food business with over 1,500 outlets in 25 countries and a sales volume of more than $1 billion, according to QSR Magazine.
For years, this brand has surpassed the rest of the fast-food industry. Church’s Chicken franchise continued to soar in 2020, with a fifth consecutive year of record profitability and growth.
The brand also announced plans to open another 100 locations, implying that system-wide sales should be even higher next year.
Facts About the Church Chicken Franchise
This fast-food chain began in 1952 as “Church’s Fried Chicken To-Go” by the founder, George W. Church, before becoming known in the food industry.
This is where the Church in his company name comes from, not a place of worship. That said, customers are devoted to the flavor of this chain’s fried chicken.
For the first few years of operation, the restaurant served chicken with no sides. George W. Church added fries and jalapenos to the menu after three years.
Other popular items such as macaroni, cheese, and other traditional Southern sides were eventually added to the menu.
This company was founded over 50 years ago, and the ageless taste of Church’s Chicken recipes keeps customers coming back for more.
Church Chicken Franchise’s Profit
The company expanded by providing value to franchisees. Church’s Chicken has the biggest profit margin of any billion-dollar restaurant company, at 26.3 percent, with corporate-owned restaurants earning over $900,000 per year.
Church’s Chicken and its sister brand, Texas Chicken, achieved a new high in 2020 with system-wide sales of over $1.2 billion, demonstrating that this fast-food branch has the potential to grow in the future.
Benefits of Franchising Church’s Chicken
Here are some benefits that the Church Chicken franchise provides to prospective franchisees.
1. Strong Brand Awareness
Church’s Chicken has been in business for nearly seven decades and continues to grow and set new sales records.
Church’s Chicken owns and franchises over a thousand fast-food chicken outlets in various countries, with another 100 planned in the next year.
Church’s Chicken ranks well among fried chicken restaurant rivals despite the tough competition. Most times, franchisees do not need to further introduce the Church’s Chicken concept because the brand is well known.
2. System-Wide Sales
Church’s system-wide sales rose by 5% in 2008. At 26.3%, the company has the biggest profit margin of any $1 billion restaurant chain.
Before investing in any food brand, consider the profitability of the menu. Preferably, you want to choose a company with some profit margin.
This is important in situations where there is transitional inflation and rising food prices. It is critical to have a product with a high-profit margin, such as chicken.
4. Comprehensive Support
The National Minority named church one of the top 50 brands for minorities Franchising Initiative.
The Franchise Business Review named Church one of the Top 50 Franchises for Franchisee Satisfaction in 2009.
Church’s Chicken’s comprehensive support for its franchisees in selecting construction sites made that accomplishment possible.
Aside from that, Church’s Chicken franchisees value the monthly newsletters, meetings, toll-free lines, grand openings, security/safety practices, field procedures, and purchasing cooperatives.
Church’s Chicken is improving its profit and return on investment for its franchisees.
As a result, Church has construction schemes and flexible real estate where the location of their Fast-Food Restaurant competitors could be converted into a Church establishment.
If you can find a failed restaurant in your area, you might turn it into a Church’s Chicken.
When compared to working through new construction, finding a building with enough parking, a drive-thru, and a commercial kitchen that has already passed county health inspections is a meaningful cost saving.
Renovating an existing restaurant location can also be much faster, with less time planning and more chicken out the door.
The Difficulties of Franchising Church’s Chicken
Despite all the benefits of franchising Church’s Chicken, it is also crucial to be aware of the difficulties that could occur when franchising this company.
1. Chicken Shortages
Chicken has been difficult to come by for restaurants all over the country owing to a mix of logistical challenges and poultry shortages.
According to reports, the fried chicken trend is causing the United States to run out of poultry.
If the poultry issue is not resolved, the company will struggle to remain profitable. Outside of the sides, there isn’t much left on the menu to sell without the chicken.
2. High Franchise Fee
Church’s Chicken may be out of range financially for many investors looking to start a business through franchising.
Even though there is a high likelihood of receiving a high-end return on investment in the future, you should also consider that there may be some additional payment that is not limited to your staff, maintenance, or extra funds.
3. Limited Menu
This fast-food restaurant is well-known for its fried chicken and sides. Given that offer, there is a strong possibility that customers will not find more food options. One disadvantage of Church’s Chicken is its limited menu.
In 2020, the company adjusted to the times by introducing a chicken sandwich to the menu permanently. This sandwich is served on a brioche bun and is topped with mayo, pickles, and, of course, fried chicken breast.
The fast-food chain quickly rose to prominence in the so-called “Chicken Sandwich Wars.”
Is the Church’s Chicken Franchise a Good Fit?
Franchising a Church’s Chicken is a venture that the iconic meal of fried chicken remains a profitable business model.
If you want to franchise this fast-food chain, you must first evaluate yourself, the cost, and your desire to start this business.
Overall, I am excited about this franchise concept. However, before you take the plunge, consider your personal interests and skills.
Are you ready to keep this business open for the next few years? Do you have the funds to start this business?
Is it sufficient to allow your business to stand for an extended period? If you answered yes to each of these questions, this could be the possibility you’ve been looking for.
Is the Church’s Chicken Brand Getting a Makeover?
The owner of Church’s Chicken had announced that the quick-service chain’s brand in Atlanta will be sold. Church’s Chicken representatives, however, have not reacted to the rumors.
Following the announcement that Church’s Chicken will undergo a brand reboot, rumors suggest it will go on sale. Could it be true, or is it a ruse?
Today, the answer is still unknown. Jim Hyatt, CEO, and President has confirmed no brand re-design.
In contrast, most brands redesign their logos and store models regularly.
The menu could be an excellent option to launch overseas, giving it a shot as an upgraded brand while still selling the same memorable varieties of “Texas Chicken.”
What Is the Better Franchise: Church’s Chicken or Popeyes?
Church Chicken franchise and Popeyes are well-known and profitable brands. Both fast-food restaurants are well known for their delicious fried chicken.
The franchise fee for Church’s Chicken is less than that of Popeyes. Church’s Chicken is an excellent choice if you want to start a franchise with low capital requirements.
Church’s Chicken Franchise provides advertisements, regional advertising, operations, and training help.
It shows that Church’s Chicken is deliberate in ensuring that the franchisee gets the knowledge and skills to run the business efficiently. Popeyes has a competitive advantage in terms of consumer preference.
Customers prefer their chicken to be more juicy, delicate, and savory than Church’s. Popeyes is also doing well in terms of brand awareness, with over 3,000 outlets.
In the end, each of these chains is an excellent franchise opportunity. Choose Church’s Chicken if you have a limited investment budget and want hands-on training from your franchised eatery.
If you want a well-known and high-quality chicken restaurant, Popeyes is the best bet.
Frequently Asked Questions
Friedman Fleischer & Lowe, a private equity firm, currently owns the chain. Across 50+ businesses, the company has invested over $2.5 billion. However, the private equity firm invests not only in food businesses, they’ve also purchased dental and software firms.
After all, humans are wired to crave fried chicken, and I don’t see this eatery going out of style anytime soon. Even scientific research shows that the crunchiness and experience of eating fried chicken are wired into humans. We can’t get enough of this food.