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Why does it cost only $10,000 to own a Chick-fil-a franchinse?

Summary:
Good puzzle posed by an article:For KFC, the cost of opening a franchise is M dollars, but you get to keep a 95% of your sales. For Chick-fil-a, the cost of opening a franchise is only K (the franchisor buys the land and equipment), but you keep only 50% of revenue and only 85% of net profit. Why the difference? In lieu of wealthy investors, Chick-fil-A selects franchisees who are involved in their local communities. The company’s aim, says a spokesperson, is to find people who are willing to be “highly involved” in day-to-day operations. (While not a stated requirement, adhering to “Christian values” also doesn’t hurt an applicant’s chances).  “You run every aspect of the restaurant six days a week,” says Jeremiah Cillpam, a Chick-fil-A franchise owner in Los Angeles. In return

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Good puzzle posed by an article:

  • For KFC, the cost of opening a franchise is $2M dollars, but you get to keep a 95% of your sales.
  • For Chick-fil-a, the cost of opening a franchise is only $10K (the franchisor buys the land and equipment), but you keep only 50% of revenue and only 85% of net profit.

Why the difference?
In lieu of wealthy investors, Chick-fil-A selects franchisees who are involved in their local communities. The company’s aim, says a spokesperson, is to find people who are willing to be “highly involved” in day-to-day operations. (While not a stated requirement, adhering to “Christian values” also doesn’t hurt an applicant’s chances). 
“You run every aspect of the restaurant six days a week,” says Jeremiah Cillpam, a Chick-fil-A franchise owner in Los Angeles. In return for 60-hour work-weeks, an operator might take home 5-7% of revenue (around $150-$250k per year). ...
In essence, Chick-fil-A operators aren’t truly business owners — or even franchisees in the traditional sense. 
“When people start a business, they want flexibility and real ownership,” says Kenny Rose, CEO of Semfia, a firm that educates people on franchise investing. “But as a Chick-fil-A franchisee, you’re basically just working a traditional management job.”

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