Chick-fil-A is one of the hardest franchises in America to get. The company told CNBC in 2018 that it received about 60,000 franchise inquiries a year and selected 75 to 80 people to open new locations, a rate of roughly 0.13%. It does not publish current figures, and an inquiry is not the same as a completed application, but the selection is unquestionably narrow.
Meanwhile, the real estate under Chick-fil-A restaurants trades in the open market, and anyone with the capital can buy it. The median asking cap rate on the 43 Chick-fil-A listings we track is 4.25%, compared with 6.35% for all net lease listings. This page puts the two routes into the same brand side by side. For how tenant credit is graded, see our investment grade research and the investment grade guide.
The Franchise Fee Is $10,000
Chick-fil-A’s franchise page lists an upfront fee of $10,000 in non-gifted, non-borrowed funds for the initial franchise fee. That fee is not the cost of opening a restaurant, and it does not buy an asset: Chick-fil-A generally pays for the restaurant’s building, equipment and furnishings and keeps ownership of them. The operator is running a restaurant that someone else owns.
Chick-fil-A’s other minimum requirements, from the same page: the legal right to own and operate a franchise in the United States, no bankruptcy in your financial history, full-time, hands-on, day-to-day operation of the restaurant, divesting all non-passive business opportunities, at least five years of professional work experience, and experience leading a team.
What an Operator Signs Up For
| Term | Chick-fil-A | Typical franchise |
|---|---|---|
| Initial fee | $10,000 | Commonly tens of thousands of dollars |
| Ongoing payments to franchisor | 15% of sales plus about 50% of profit, as widely reported from the disclosure document, plus rent and other charges | Royalty commonly 4% to 8% of sales, plus advertising |
| Who funds the restaurant build | Chick-fil-A | The franchisee |
| Who owns the real estate | Chick-fil-A or a third-party landowner under a ground lease; never the operator | The franchisee or a landlord |
| Who owns the equipment | Chick-fil-A | The franchisee |
| Can you sell the business | No | Usually, subject to franchisor approval |
| Units permitted | Typically one | Often multiple |
| Other business interests | Must divest non-passive business opportunities and operate full time | Often permitted |
Chick-fil-A requirements from the company’s franchise page, checked October 2026. Royalty and profit share as reported by The Hustle from Chick-fil-A’s disclosure document; the “Typical franchise” column describes common ranges, not a specific brand. Verify every term against the current Franchise Disclosure Document.
Chick-fil-A is explicit that this is not a passive investment. Its franchise page says the opportunity is “not for those seeking passive financial investment, working from the sidelines, or adding to a portfolio of business ventures.”
The restaurants are exceptionally productive. According to Chick-fil-A’s 2026 disclosure document, as reported by QSR Magazine, the roughly 2,302 domestic freestanding and drive-thru-only restaurants open all of 2025 averaged $9,161,239 in sales, and the highest-volume restaurant reached $20,048,032. Chick-fil-A does not publish what operators earn, and one operator quoted on its franchise page notes that a restaurant may not be profitable for its first few years.
The Real Estate Is a Separate Asset, and It Trades
Chick-fil-A often does not own the land under its restaurants. A common structure is a corporate ground lease: an investor owns the land, Chick-fil-A signs a long-term absolute net lease, builds the building at its own expense, and pays rent to the landowner, typically with renewal options. The landowner has little or no responsibility for the building, though it still has ownership duties such as reviewing estoppels and lease administration.
Live asking cap rates
| Tenant | S&P / Moody’s | Median asking cap rate | Middle half of listings | Listings | Median vs. 10-year Treasury |
|---|---|---|---|---|---|
| McDonald's | BBB+ / Baa1 | 4.00% | 3.75% to 4.24% | 46 | −124 bps |
| Chick-fil-A | n/a / n/a | 4.25% | 4.00% to 4.50% | 43 | −99 bps |
Active listings InvestmentGrade.com tracks with an asking cap rate (stated in the listing, or computed from its stated income and price when no rate is stated), listings last observed October 16, 2026. Asking cap rates are not closed-sale cap rates. The middle half is the range from the 25th to the 75th percentile of listings. The 10-year Treasury yield is 5.24% as of October 1, 2026 (FRED series DGS10). Ratings are the agency ratings in our ratings database for the entity shown, which may be a parent company; the rating type (for example issuer, senior unsecured debt, long-term debt or revenue bond ratings) varies by company and is shown on each tenant page. A rating applies to a lease only if the rated entity signs or guarantees it, so confirm the tenant and any guarantor in the lease. n/a means no verified rating is on file.
Chick-fil-A and McDonald’s listings ask some of the lowest cap rates in net lease, well below the median of 6.35% across the 6,750 net lease listings we track. Asking cap rates are not closed cap rates, and listings include both ground leases and fee-simple properties.
A recent transaction
In July 2026, a new-construction Chick-fil-A drive-thru in Hixson, Tennessee was reported to have pre-sold for $2.77 million at a 4.15% cap rate. The property is a 6,008-square-foot relocation store on 1.74 acres, on a 15-year corporate absolute net ground lease with 10% rent increases every five years and ten five-year renewal options. The buyer’s broker described it as the lowest cap rate on record for a single-tenant Chick-fil-A drive-thru in Tennessee.
The escalation structure matters over a holding period: rent that rises 10% every five years compounds, and on a ground lease with minimal landlord capital obligations, most of each increase reaches the owner.
Two Ways Into the Same Brand
| Operating the restaurant | Owning the ground lease | |
|---|---|---|
| How you get in | Selected by Chick-fil-A after applying | Buy an available property |
| Odds | About 0.13% (company figures reported in 2018) | Availability and price |
| Upfront money | $10,000 franchise fee from personal funds | The purchase price |
| What you own | No equity in the restaurant | The land and the lease on it |
| Your time | Full time; non-passive business opportunities must be divested | Limited under an absolute net ground lease; acquisition diligence, lease administration and ownership decisions remain |
| Income | Operator compensation, which varies with restaurant profit | Contract rent |
| Rent or income increases | Depend on restaurant performance | Set by the lease, often 10% every five years |
| Can you sell it | No | Yes |
| Can you borrow against it | No | Yes |
| 1031 exchange eligible | No | Yes |
The operator route requires winning a highly selective process and builds income rather than equity. The real estate route requires capital and due diligence, and results in a deeded, financeable asset tied to the same brand. Because operators do not own the restaurant, most of the financing in this brand happens on the real estate side.
Underwriting the Land
A low cap rate brings trade-offs, and an honest analysis includes them.
- No public credit rating. Chick-fil-A is privately held and has no rating from S&P, Moody’s or Fitch. Its audited financial statements are included in its franchise disclosure document; Franchise Times reported revenue above $9 billion for 2024 from that filing, and systemwide sales were reported at nearly $24 billion for 2025. Investors often treat the company as a strong credit because of that scale. That is an inference, not a rating, and the distinction matters to lenders and appraisers. See the Chick-fil-A credit rating and NNN cap rate page.
- Thin spread to Treasuries. With the 10-year Treasury at 5.24%, a Chick-fil-A cap rate in the low 4% range is below the Treasury yield. Buyers are paying for durability, lease growth and land value rather than current yield.
- Sundays closed. Restaurants close on Sundays, which is already reflected in their sales.
- Measured growth. The chain opened a net 179 locations in 2025, as reported from its disclosure document, which limits new supply of these leases.
- Lease specifics. Confirm that Chick-fil-A, Inc. or another corporate entity is the tenant, the remaining term, the renewal options, and what happens to the building at lease end.
To compare it with the other most sought-after quick-service ground lease, see Chick-fil-A vs. McDonald’s as a net lease investment. Broader pricing is in our NNN cap rates by tenant report.
If You Still Want to Operate One
Nothing here argues against applying. For someone who wants to run a restaurant rather than own real estate, it is one of the most respected opportunities in the industry. Apply directly through Chick-fil-A; no outside broker or paid service can improve your odds of selection. If what you want is to own something in this brand, the real estate is the path.
Looking at Chick-fil-A Ground Leases?
Tell us your criteria, including cap rate, geography, remaining term and any 1031 exchange deadline, and we will show you what is available and how it compares with current listings. On the majority of transactions, there is no separate fee to you as the buyer for representation; the listing broker pays a cooperating commission.
Frequently Asked Questions
How much does a Chick-fil-A franchise cost?
Chick-fil-A’s franchise page lists a $10,000 initial franchise fee, which must come from non-gifted, non-borrowed funds. Chick-fil-A generally funds the restaurant building and equipment itself and keeps ownership of them, so the fee is not the full cost of the restaurant and does not buy an asset.
Why is the Chick-fil-A franchise fee only $10,000?
Because the operator is not buying the restaurant. Chick-fil-A retains ownership of the building and equipment and recovers its investment through ongoing payments, widely reported as 15% of sales plus about half of profit, along with rent and other charges set out in its disclosure document.
What are the odds of being selected as a Chick-fil-A operator?
Chick-fil-A told CNBC in 2018 that it received about 60,000 franchise inquiries a year and selected 75 to 80 people to open new locations, roughly 0.13%. The company does not publish current figures.
Can a Chick-fil-A operator own other businesses?
Chick-fil-A requires candidates to divest all non-passive business opportunities and to operate the restaurant full time. Its requirements address non-passive businesses; confirm how passive investments are treated under the current franchise terms.
Can you buy the real estate under a Chick-fil-A?
Yes. Chick-fil-A often occupies land under a long-term corporate ground lease, so an investor owns the land while Chick-fil-A builds and operates the restaurant and pays rent. These properties trade in the net lease market, and there is no selection process, only availability and price.
What cap rate do Chick-fil-A properties trade at?
The median asking cap rate on the Chick-fil-A listings we track is 4.25% as of October 16, 2026. Asking cap rates are not closed cap rates; a new-construction Hixson, Tennessee ground lease was reported to have pre-sold at a 4.15% cap rate in July 2026.
Educational content only. InvestmentGrade.com is a commercial real estate brokerage and educational publisher. We do not sell, broker, underwrite, or solicit any bonds, securities, or investment products. Yields, ratings, and prices referenced fluctuate continuously and are sourced from public market data as of the date noted. Nothing on this page constitutes investment advice, an offer to sell, or a solicitation to buy any security. Consult a licensed broker-dealer, registered investment advisor, or tax professional before making any investment decision. For SEC investor education, visit investor.gov.
