Chop Stop Franchise Owner Salary, Profit & Failure Rate 2023

Over the last few years, there has been a massive interest in healthier foods, which leads people to visit restaurants that offer healthy dishes. Chop Stop is a healthy fast-food restaurant chain that is increasing in popularity. Due to these factors, you might have thought about owning a Chop Stop franchise.

Chop Stop Franchise

If you want to learn more about what they offer in their franchise program, you are in the right place. We will show you all the necessary details of the Chop Stop franchise program, like costs, requirements, training, and many others.


About Chop Stop and Chop Stop History

Chop Stop is an American quick-service restaurant offering salad combinations with a particular focus on healthy dishes. They are based in California with about 26 stores so far, most of which are franchised, and a couple of it is company-owned.

They were founded in 2010 and started franchising in 2015 to grow the company faster in various markets.

They currently operate in seven states and offer franchising opportunities in these seven states only. Since they started franchising, they have perfected their franchise program to help everyone, whether experienced or not, to succeed as a Chop Stop franchisee.

This makes them a perfect opportunity for many entrepreneurs looking to own their own store.


Franchise Model Table

Cost Or FeeAmount
Initial Investment      $327,000-$698,500
FranchiseYES
Franchising Since2015
Franchise-Fee$35,000
Royalty-Fee5%
Liquidity$125,000
Estimated Outlets26

How Much Does It Cost To Open A Chop Stop Franchise?

The expected initial investment to open a Chop Stop is between $327,000 and $698,500. This includes every startup cost, from franchise fees to employee hiring, construction, and extra working capital.

The exact number you will spend varies on the location, size of the store, number of employees, real estate, and other variable costs.


Franchise Requirements

The only requirement to have is a liquid cash of $125,000 and a pre-approval for an SBA loan of $400,000 from a qualified bank. They want you to have this amount and approval of the loan so that they know you can open and operate the store.

There is no professional background requirement to be a franchisee. Whether you have managerial experience in the industry or not, you can still apply and be a franchisee with Chop Stop. This is because their training focuses on teaching you everything to succeed.


Profit & Revenue

Chop Stop doesn’t provide company financials except for the sales per franchised and company-owned stores. That’s why we can only make estimations based on those numbers.

Our estimations show that the average annual revenue for Chop Stop is around $23 million. The average annual net profit is between $1.3 million and $2.3 million.


Overall Sales

The average overall sales per franchised store is around $890,000 annually. The highest it can go is close to $1 million, and the lowest recorded is $680,000. These are net sales numbers that represent the revenue per store.


How Much Does A Chop Stop Franchise Owner Earn?

There is no available information about the franchise owner’s salary for Chop Stop.

However, we do know that the average revenue for Chop Stop franchise owner is $890,000 annually. And as per the industry average profit margin for quick-service restaurants is 10%.

Considering this, we can expect the net salary to be $89,000 annually per franchised store.

This is how we calculated this amount:

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%890000.00
Rent11.25%(100125.00)
Insurance5.63%(50062.50)
Salaries22.50%(200250.00)
Franchise Royalty Fees5.63%(50062.50)
Utilities2.25%(20025.00)
Cost of Goods Sold (COGS)28.13%(250312.50)
Labor (Variable)14.63%(130162.50)
Total (Expenses)90.00%(801000.00)
Net Profit10.00%89000.00

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


Payback Period Of Chop Stop Franchise

With a total investment of $698,500 and a yearly profit of $89,000, the payback period of the Chop Stop franchise can be calculated.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Total Investment / Yearly Profit = $698,500 / $89,000 = 7.8 years

Based on these figures, it will take approximately 8 years to pay back the initial investment for Chop Stop. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Failure Rate Of Chop Stop

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
201823+1
2019310+7
20201018+8

For the Franchised outlets:

  • In 2018, the growth rate was (1)/2×100≈50%
  • In 2019, the growth rate was (7)/3×100≈233.3%
  • In 2020, the growth rate was (8)/10×100≈80%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2018550
2019550
2020550

For the Company-Owned outlets:

  • In 2018, the failure rate was (0)/5×100≈0.00%
  • In 2019, the failure rate was (0)/5×100≈0.00%
  • In 2020, the failure rate was (0)/5×100≈0.00%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
201878+1
2019815+7
20201523+8

For Total outlets:

  • In 2018, the growth rate was (1)/7×100≈14.28%
  • In 2019, the growth rate was (7)/8×100≈87.5%
  • In 2020, the growth rate was (8)/15×100≈53.33%

According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.

We can see that the franchised outlets for Chop Stop grew from 2018 to 2020, showing a growth rate between 50% and 80%. On the other hand, for company-owned outlets, the failure rate of Chop Stop was lying in the range of 0.00%

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Chop Stop franchise has expanded in the years 2018-2020, showing a total growth rate between 14.28% and 53.33%


Training and Support

Training and Support Of Chop Stop

There is an initial training program for the franchise owners. This training is for five weeks and happens in their Glendale restaurant, on-site. It focuses on teaching the franchisee how to be an operator from management to operation.

In addition to the training, Chop Stop helps find and secure real estate with a real estate consultant, gives you a construction supervisor to get your store ready, and a business coach on-call to help with post-opening operations.


Terms of Agreement and Renewal

The initial term of the agreement is for ten years. The agreement is open for renewal after the initial ten years is over. The Exact renewal details, the renewal fee, for how long, and how many times you can renew it depends on your agreement.

The franchise disclosure agreement you will receive will have these details. Furthermore, you can discuss the details with Chop Stop.


Obligations and Restrictions

As the franchise store’s owner, you are obligated to stay in charge of the daily operations and be in the store every working day. You have to oversee the daily operations and be an active manager, it’s restricted to be absent from the operations.


Financial Assistance

Chop Stop doesn’t directly provide financial assistance. They introduce you to third-party SBA lenders. These lenders are qualified by them and familiar with the entire process of financial assistance to Chop Stop franchisees. They don’t have any say in the process of getting you the loan. They just introduce you.


Chop Stop Comparison

NameFranchise FeeRoyalty FeeInitial Investment
Freshii$30,0006%$200,000-$470,500
Saladworks$35,0006%$576,557-$728,457
Chop Stop$35,0005%$327,000-$698,500

Conclusion

Chop Stop is a fast-food franchise with a special focus on healthy dishes like salad combinations. They have been franchising since 2015 with extensive training programs, post-opening support systems, a network of financial lenders, and many other things to help their franchisees.

They have a very moderate expected initial investment number of between $327,000 and $698,500 and no requirement to have any kind of experience in any industry or role. If Chop Stop is on your list as an entrepreneur to own a franchise, it could be a very lucrative and good idea to apply.


FAQs

How much is the Chop Stop franchise fee?

The franchise fee for Chop Stop is $35,000. If you are a veteran, a discount of $10,000 is available on the franchise fee.

Is Chop Stop a franchise?

Yes, Chop Stop is currently a franchise. You can apply through their website.

Do I need experience in the restaurant industry to be a Chop Stop franchisee?

No, you don’t need any kind of experience to be a Chop Stop franchisee. If you have the necessary finances, you are ready.

How Many Locations Does Chop Stop Has?

Chop Stop is based in California with about 26 stores so far, most of which are franchised, and a couple of it is company-owned.

Where Is Chop Stop Headquartered?

The headquarters of Chop Stop is in La Crescenta, CA 91214.

Who founded Chop Stop?

Chop Stop was conceived by frustrated founder Mark Kulkis for craving of chopped salads and noplace to buy them.

Sources

https://chopstop.com/franchise-home/financial/

https://www.freshiifranchising.com/requirement

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