Verified — real FDD extraction
Not found in the SBA Franchise Directory under this name — though SBA loans to its franchisees exist; verify eligibility with your lender
Chick-fil-A Operator Program
Other · independent · est. —
Chick-fil-A's operator program is the company's traditional restaurant model, in which Chick-fil-A owns the restaurant and selects an operator rather than selling a conventional franchise. The operator runs a single quick-service chicken restaurant day-to-day for a modest upfront fee, sharing revenue and profits with the company under terms that differ from most franchises.
Chick-fil-A Operator Program net unit count grew +11.3% from 2013–2015 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).
The verdict
Proven & strong
Distress
Enough units and history to judge, and the record is good: growing or stable units with clean exits by the standards of its disclosed record. The standout in the record: owner turnover is low.
Exit rate · latest year
0.8%
fiscal 2015, per Item 20
Cost to open
$259K–$1.6M
Item 7 total investment range
SBA loan defaults
Too few resolved
1 loans exist; too few resolved to rate
Behind the verdict
the record, factor by factor · Item 20
3-yr trend · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness
Systemwide units
2013–2015
Survival record
FDD Item 20 · outlet status by year
In fiscal 2015, 12 of 1,553 franchised outlets left the system — a 0.8% annualized exit rate. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2013 | 2014 | 2015 |
|---|---|---|---|
| Outlets at start | 1,430 | 1,507 | 1,595 |
| Opened | 155 | 168 | 172 |
| Transfers | 0 | 0 | 0 |
| Terminations | 0 | 0 | 0 |
| Non-renewals | 0 | 0 | 0 |
| Reacquired by franchisor | 63 | 72 | 67 |
| Ceased — other reasons | 13 | 8 | 12 |
| Outlets at end | 1,507 | 1,595 | 1,677 |
| Net change | +77 | +88 | +82 |
The lender's view
SBA 7(a)/504 loan performance · FY1991–present
Banks have made 1 SBA-backed loans to Chick-fil-A Operator Program franchisees since 2016. Most are still open, so there is not yet a resolved cohort large enough to rate.
—
0 resolved · too thin to rate
—
avg. charged-off $ ÷ approved $
—
default rate × loss severity
$435,700
what recent franchisees borrowed
—
approval → charge-off, defaulted loans
0 vs 1
distinct banks — pulling back
Charge-off rate by loan approval year (%)
SOURCE: SBA 7(a)/504 FOIA LOAN DATA (DATA.SBA.GOV), FY1991–PRESENT · MATCHED TO CHICK-FIL-A OPERATOR PROGRAM BY FRANCHISE NAME · RESOLVED = CHARGED-OFF + PAID-IN-FULL
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $10K franchise fee (Item 5) and a total investment of $259K–$1.6M (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$259K–$1.6M
all-in investment range
Franchise fee (Item 5)
$10K
upfront, one-time
Royalty (Item 6)
15%
of sales, ongoing
Your figure — cross-check against this brand's Item 19 and current-owner validation.
Royalty you'd pay / yr
$150K
15% of sales, before profit
Over a 10-yr term
$1.5M
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for Chick-fil-A Operator Program with an independent CPADistress signals
news-sourced · bankruptcies, closures, lawsuits
No recent closures, bankruptcies, or major lawsuits found in the news for Chick-fil-A Operator Program. That's a good sign — but it reflects news coverage, not a guarantee.
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing Chick-fil-A Operator Program's numbers, including talking you out of a bad deal.
Talk to an independent CPA before you buy →Chick-fil-A Operator Program franchise questions, answered from the filings
What percentage of Chick-fil-A Operator Program franchises closed last year?
In Chick-fil-A Operator Program's latest FDD Item 20 (fiscal 2015), 12 of 1,553 franchised outlets left the system — an annualized exit rate of 0.8%. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.
How much does a Chick-fil-A Operator Program franchise cost?
Per Chick-fil-A Operator Program's 2016 FDD, buying in requires an initial franchise fee of $10K (Item 5) and a total initial investment of $259K–$1.6M (Item 7).
What royalty does Chick-fil-A Operator Program charge?
Chick-fil-A Operator Program charges an ongoing royalty of 15.0% of gross sales, per Item 6 of its 2016 FDD.
Does Chick-fil-A Operator Program disclose earnings (Item 19)?
Yes — Chick-fil-A Operator Program makes a financial performance representation in Item 19 of its 2016 FDD. Read it closely: franchisors choose which units and which metrics to include.