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How Much Does It Cost to Open Church’s Chicken Franchise?

If you are looking towards opening a Church’s Chicken Franchise, it will be nice for you to have a preview of what the company represents before going ahead to enquire about the total cost of opening the franchise in your location. Church’s Chicken was founded in 1952 and they began franchising in 1969, about 51 years ago. The current CEO is Joe Christina and they have their corporate head office at 980 Hammond Dr., #1100 Atlanta, GA 30328. Presently, the company operates 1,388 franchises in the United States.

Retired incubator salesman George W. Church Sr. had the idea in 1952 to offer fried chicken in a fast-food setting. The first Church’s Fried Chicken opened across the street from the Alamo in San Antonio, Texas, and sold only fried chicken. French fries and jalapenos were added to the menu in 1955. Today, the menu has expanded to include other traditional sides such as coleslaw, biscuits, mashed potatoes and fried okra, as well as desserts and dipping sauces.

Church’s Chicken became popular due to its tantalizing chicken combos and family meals. Church’s Chicken franchise offers favorable opportunities for the business people who want to make a profit by sharing the values of the company.

Buy one of Church’s Chicken restaurant franchises offered for sale and the franchisor will help you choose a location for your restaurant. Here are areas where you are expected to spend money and the cost associated with it;

Financial Investment Required to Open Church’s Chicken Franchise

  1. Development Fee: $10,000 – $10,000
  2. Initial Franchise Fee: $15,000 to $15,000
  3. Real Estate (purchase or lease): Variable
  4. Site Work: $17,650 to $350,000
  5. Building and Improvements: $230,200 to $620,000
  6. Equipment and Signs: $324,500 to $377,000
  7. Fees, Misc., A&E Services, Deposits: $50,000 to $150,000
  8. Initial Training: $0 to $23,000
  9. Opening Supplies: $6,350 to $12,700
  10. Insurance: $7,500 to $10,000
  11. Utility Deposits: $10,000 to $15,000
  12. Business Licenses: $300 to $600
  13. Additional Funds – 3 months: $10,000 to $20,000
  14. Development Schedule Extension Fee: $3,000 for each development schedule extension of 4 months – if extending opening date and open within the extended time period, the extension fee will be credited to the franchise fee; if extending site approval date, no credit.
  15. Royalty: 5 percent of gross sales.
  16. Tax Reimbursement: If any taxes, fees or assessments are imposed on the franchisor by reason of it acting as franchisor or licensing proprietary marks to the franchisee, then the franchisee must reimburse the franchisor such amount.
  17. Advertising Fund Contribution: 5 percent of gross sales (up to 1 percent of gross sales if a regional co-op has been formed, plus contribution to co-op) and at least $25,000/year.
  18. Regional Advertising Cooperative Contribution: Percentage of gross sales as determined by the franchisee’s ad co-op. The contribution must be at least 5 percent of Gross Sales.
  19. Transfer: $5,000
  20. Unauthorized Transfer: $25,000
  21. Renewal: 50 percent of the then-current, standard, initial franchise fee.
  22. Securities Offering Review Fee: $5,000 or such greater amount as is necessary to reimburse the franchisor for reviewing the proposed offering.
  23. New Supplier Inspection and Product Testing: Cost of inspecting the facilities of a previously unapproved supplier proposed by the franchisee and of testing ingredients, products, supplies or goods the franchisee proposes to purchase from that supplier (could range from $0 to $5,000).
  24. Audit (by the franchisor): Cost of audit.
  25. Customer Satisfaction and Franchise Compliance Programs: Currently $95 per 4-week period for the combination of guest hotline (Market Force) and customer survey program (SAT Track), OPS 360 tablet protective hardware, Verizon cellular tablet fees; KNOX tablet security, and tablet protection fees.
  26. Late Payment Fee – Overdue Payments and Understated Sales 1.5 percent of the amounts due per month, plus $100.
  27. Default Royalty: 1 percent of gross sales.
  28. Costs and Attorneys’ Fees: Will vary by circumstances.
  29. Cure: Will vary by circumstances.
  30. Follow-up Inspection: Will vary by circumstances.
  31. Indemnity: Will vary by circumstances.
  32. Liquidated Damages: Average weekly royalty fees and advertising contributions for the 52 weeks preceding termination, multiplied by 208 (or if less than four years remaining in the term, multiplied by the number of weeks remaining in the franchise term).
  33. Purchasing Division Surcharge: Pass-through of the franchisor’s cost.
  34. Manager Training: Cost of training program.
  35. Veteran Incentives: Can be negotiated with the company
  36. Term of Agreement and Renewal: The length of the initial franchise term is 20 years from the date of commencement of operation of the restaurant. One renewal term of 10 years is available, subject to contractual requirements.
  37. Financial Assistance: Neither the franchisor nor any agent or affiliate offers direct or indirect financing to franchisees, guarantees any note, lease or obligation of franchisees, or has any practice or intent to sell, assign or discount to a third party all or any part of any financing arrangement of franchisees. If franchisees are interested in obtaining a loan guaranteed by the SBA for the development of a new restaurant, Church’s Chicken is listed on the SBA Franchise Registry.

In Summary,

  • Initial Investment: $348,300 – $1,826,300
  • Net-worth Requirement: $1,500,000
  • Liquid Cash Requirement: $650,000
  • Ongoing Initial Franchise Fee: $15,000
  • Ongoing Royalty Fee: 5 percent
  • Ad Royalty Fee: 5percent

How to Open Church’s Chicken Franchise

  1. Ensure you have adequate capitalization

In order to open a Church’s Chicken restaurant franchise, you must have a net worth of more than $1,500,000.

  1. Appreciate the investment required for a restaurant franchise

You will need to consider real estate costs, the cost of equipment and signs, the costs of licenses and permits, the cost of uniforms, the cost of insurance, etc.

  1. Evaluate your prior experience and strengths

You should thoroughly evaluate your prior business experience before applying to become a Church’s Chicken franchise owner.

  1. Assess market availability

You will want to look at the market availability for Church’s Chicken franchises and see if there are available markets in your location of interest before proceeding with the franchising application.

  1. Submit your application

Your application will be reviewed by the Church’s Chicken franchise team. You will be emailed a confirmation receipt upon reception of your online application, where we will additionally provide the contact details of the franchise owner.

  1. Receive approval and open your Church’s Chicken franchise

You will receive franchise approval once your financial and background checks are completed. Approval will only be given to candidates who meet all the requirements of franchise owners.