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Want To Know How Much It Costs To Open A Chicken Franchise?

Chicken Franchise

The chicken restaurant franchise market has grown recently as more people are jumping on the bandwagon. Many chicken restaurant brands have also expanded to fill the supply gap in this profitable market. Starting a restaurant from scratch can be challenging, but thanks to franchising, ordinary people can now own part of big brands.

A franchise is when the chicken restaurant decides to share its recipe, customer base, and brand identity with individual investors. It is hard to ascertain how much chicken franchise cost because of the additional charges that differ from one brand to the other. This article will delve into the different types of charges involved in running a chicken franchise.

Franchise Fees

The franchise fee is also known as the initial fee that a franchisee pays to the franchisor in exchange for the rights to use the brand identity, recipe, and customers in a place of your choosing. This fee is different for individual brands of chicken restaurants ranging from $35,000 to over $500,000 for high-end chicken restaurant brands. While most of these upfront costs are expensive, they can only last for a decade or two, after which you’ll need to renew the contract.

These hefty franchise fees cover the application, setting you up, and the initial fee allowing you to be part of the franchise. Part of this fee is used for training you and your team to the standards of the chicken franchise.

Construction Fees or Rent 

Getting your franchise business started would require you to have a place where you can serve customers. The cost of constructing the property and ensuring it is business-ready will solely be yours to bear. The franchisor might help to offset a portion of the expense, leaving the rest for you to clear. Since building from scratch is expensive, you would need to rent a space for your business operations. The fees expected here are yours to pay as well. 

Equipment Purchase

Opening a chicken franchise needs a kitchen that is fitted with high-end appliances capable of serving many people. The franchise owner would be responsible for purchasing this kitchen equipment, including the furniture used by the customers. The cost of getting all these crucial equipment is quite high and will put a dent in your account balance.

Labor Costs

Your franchise will require adequate labor to ensure your customers are well-fed and satisfied. This means that you will need employees to help with the daily activities of the chicken franchise and ensure things are moving forward. Remember you are responsible for the wages of these employees. Right from the managerial department to the delivery driver or server, all these are settled by the franchisee.

Food Costs

The chicken restaurant franchise is best known for its consistency in providing menus and service across all the individual franchises. For this fact, franchisees are mandated to purchase raw materials from the franchisor or suppliers associated with them. The franchisee will cover this cost until the material reaches the chicken franchise for processing. The cost of this raw material is pricier compared to the local market and guarantees quality and health benefits.

Royalty Fees

This is a percentage of the sales income that is paid to the franchisor as payment for continued support in running the chicken franchise. It acts as a membership fee that ranges between 6-9 percent of the gross total sales made each month. In this case, the royalty fee is the only income that the franchisor makes from their franchise.

Travel Costs

Whenever you go to the franchise’s headquarters for official business, you will be required to pay for your plane tickets to and fro and the accommodation for your stay in the city. This does not exclude the days you go for training or conferences, which can have huge reservation fees to get in.

Advertisement Costs

The initial fee covers the first advertisement budget for your chicken franchise, after which the franchisor no longer takes care of this expense. This will require you to solicit a budget for this critical part of marketing. It is key to make sure people know what you do and your recipe at your chicken franchise. Regardless of the method you advertise with, you will never go wrong with having your franchise in front of potential customers.

Several factors affect the cost of opening up a chicken franchise. Make sure you have conducted extensive research and have inquired with the franchisors about the costs of investing in their business. With the right plan, you can get a profitable business without spending as much money setting it up from the ground up.


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Why Franchise Businesses Are So Popular

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