(@chickfila on Instagram)
Chick-fil-A is among the most successful fast-food chains in the US, and it's also one of the cheapest to open.
The company grew by $700 million to achieve $5.8 billion in sales in 2014, making it larger than every pizza brand in the country, according to QSR magazine.
Chick-fil-A is now the eighth-largest fast-food chain in the US by sales, and it generates more revenue per restaurant than any other chain nationally, according to QSR.
But despite its success, Chick-fil-A charges franchisees only $10,000 to open a new restaurant, and it doesn't require that candidates meet a threshold for net worth or liquid assets, the company told Business Insider.
That's cheaper than every major fast-food chain in the US.
McDonald's, for example, requires potential franchisees to pay between $955,708 and $2.3 million in startup costs — including a $45,000 franchise fee — as well as have liquid assets of at least $750,000. Taco Bell's startup costs average $1.2 million to $2.5 million, and the company requires a minimum net worth of $1.5 million and liquid assets of at least $750,000.
Chick-fil-A, on the other hand, pays for all startup costs — including real estate, restaurant construction, and equipment.
(Chick-Fil-A )
In turn, the company leases everything to its franchisees for an ongoing fee equal to 15% of sales plus 50% of pretax profit remaining, Chick-fil-A spokeswoman Amanda Hannah told Business Insider.
"The barrier to entry for being a franchisee is never going to be money," Hannah said. "We seek to find the very best business partners who find great joy in making other people's days. They do so with a combination of great business acumen, an entrepreneurial spirit, and a passion for serving others."
So what's the catch?
While Chick-fil-A's startup costs are low, the ongoing fees are higher than those charged by many of its rivals.
McDonald's, for example, charges an ongoing monthly service fee equal to 4% of gross sales and an additional fee for rent, which is also a percentage of sales. McDonald's franchisees have historically paid about 8.5% of sales in rent costs, though some pay as much as 12%, according to a 2013 Bloomberg report.
Chick-fil-A also prohibits most of its franchisees from opening multiple units, which can limit franchisees' potential profits.
(Flickr/Jay Reed)
This limitation is meant to enable Chick-fil-A's franchisees to be intimately involved in the day-to-day operations of their restaurants.
"Chick-fil-A operators must be as comfortable rolling up their sleeves in the kitchen as they are shaking hands in the dining room," Hannah said.