Franchisel.com — FDD Diligence Memo
Chick-fil-A
Generated 2026-04-06 · 2025 FDD · Government-filed source
Chick-fil-A
2025 FDD Diligence Memo
Score of 64/10 driven by: high financial transparency, strong investment value, strong unit growth, limited territory protection.
Sys Health
7
Fin Strength
9
Econ Burden
4
Support
6
Contract
6
Change
-2
Red Flags & Key Signals
After leaving the franchise, you cannot operate a competing business in this radius. Evaluate the real-world impact on your exit options.
Franchisor is not obligated to protect your market area. Encroachment from company-owned units or other franchisees is possible.
The FDD explicitly reserves the franchisor's right to operate competing channels (e.g. online, other brands) within your market.
Avg $9,317,007 from government-filed FDD. Transparent disclosure is a positive signal.
Franchisor financial statements are audited by PricewaterhouseCoopers LLP with no going concern warning.
Investment Overview
Items 5, 6, 7Total investment range: $426,735 – $2,339,525. Initial fee: $10,000. Royalty: 15%. Marketing fund: 0%.
Payback estimate: Investment-to-disclosed-revenue ratio: 0.15x. This is the ratio of midpoint investment ($1,383,130) to disclosed avg revenue ($9,317,007). No profit assumptions are applied.
Item 19 — Revenue
Item 19 — 2025 FDD (government-filed)Item 19 discloses avg revenue of $9,317,007 (Calendar Year 2024).
Sample: Strong2,179 units (81% of system) — highly representative sample. Average ($9,317,007) and median ($9,226,669) are close — the distribution appears relatively even. Investment-to-disclosed-revenue ratio: 0.15x ($1,383,130 midpoint investment vs $9,317,007 avg revenue).
Item 20 — System Health
Item 20 — 2025 FDDSystem growing — net +132 units in reporting period.
↑ GrowingStrong expansion: 243 opened vs 0 closed/transferred.
Total Units
2,684
Net Growth
+132
Turnover
0%
Year-over-Year Trends
2025 FDDOpened
+243
Closed
-0
Net
+132
Prior-year Item 19 revenue data not available. Unit data above covers the reporting period in the 2025 FDD.
Key Contract Terms
Item 17Item 19 Data Quality Flags
Item 19Gross sales
Figure represents gross sales — standard basis for cross-brand comparison.
Profit not disclosed
Item 19 reports revenue only. No expense breakdown is provided. Profit cannot be determined from this disclosure alone.
Subset of units reported
Item 19 samples may be limited to defined subsets (subset meeting stated criteria), which affects comparability.
Strong sample (2179 of 2684 units)
81% of eligible units included — highly representative.
Data from 2024
Revenue covers 2024 — 2 years old. Reasonably current but worth confirming recent trends with existing franchisees.
Average and median close
Average ($9,317,007) and median ($9,226,669) are within 15% — reasonably even distribution.
Franchisee Interview Questions
Item 20 contactsUse Item 20 to get current franchisee contact info. Call at least 3-5. Ask these questions:
0 units closed in the most recent FDD period. Ask franchisees: what actually drove those closures — was it market conditions, operations, or franchisor decisions?
Look for: Franchisees who left voluntarily vs. those terminated. Any pattern by region, years in system, or franchisee profile.
How responsive is your franchisor rep — do they actually help when you have a problem, or are they just checking boxes?
Look for: Specific stories (not just vague positives). Ask about a time they needed help urgently — response time matters.
If you decided to sell your franchise tomorrow, how easy would that be? Has the franchisor ever blocked or delayed a transfer you wanted?
Look for: Transfer fee surprises, right-of-first-refusal complications, or franchisor demanding upgrades before approving a sale.
What did your revenue look like in year 1 vs. year 2 vs. now? When did you reach breakeven?
Look for: Year 1 revenue is typically well below Item 19 averages (which often exclude ramp-up units). Expect 12-24 months to reach average.
What did the training actually cover vs. what you needed on day 1? What do you wish you'd learned before opening?
Look for: Gap between training content and operational reality. New franchisees often report the training covered theory but not real-world situations.
Territory — Item 12
NO exclusive territory — encroachment risk exists; franchisor may operate competing channels in your market; franchisor reserves online/ecommerce sales; no defined territory type.
Item 12 · 2025 FDD
Supplier Dependence — Item 8
Critical Supplier Dependence · 9/10Alternative suppliers may be approved with permission; mandatory purchases required from approved sources; defined approved supplier list exists; franchisor or affiliate receives revenue from supplier arrangements.
Item 8 · 2025 FDD
Data sources: 2025 Franchise Disclosure Document filed with a state franchise regulator (government record). Source: Auto-extracted from 2025 Operator FDD filed with WI DFI (file #638219). Deep extraction available for the License Program FDD (filing #638216) — see the Chick-fil-A License Program page for full production-quality data.. · Payback estimates and margin assumptions are editorial — not from the FDD. This memo does not constitute legal or financial advice. Consult a franchise attorney and accountant before signing. Generated 2026-04-06 by Franchisel.com.