Church’s Chicken Franchise Cost, Profit, Failure Rate 2024

The Church’s Chicken franchise is one of the most popular fast-food franchises in the world. This franchise is also one of the 10 best-fried chicken franchises opportunity to own. Established in 1952, it has provided customers with delicious fried chicken for over six decades.

Whether you’re looking to start your own restaurant business franchise or want a piece of the action from one of the most recognizable brands in the industry, a Church’s Chicken franchise might be an excellent option.

This article will discuss all aspects of franchising with Church’s Chicken: Franchise Fees, Profit Potential, Total Investment, Training and Support, Restrictions, Renewal Options, and Return on Investment (ROI).

With this information, you can decide if franchising with Church’s Chicken is right for you. So read on and discover all the details you need to know to make an informed decision!

Church's Chicken Franchise

About & History Of Church’s Chicken Business

Church’s Chicken is one of North America’s oldest and most beloved fast-food chains. Founded in 1952 by George W. Church Sr., the company has a long and rich history that is still relevant and seen today throughout its many locations around the world.

The original plan for Church’s Chicken was to serve fried chicken from an outdoor stand in San Antonio, Texas, with live chickens visible through windows built into the stand’s walls. The recipe for this original fried chicken was passed down from Mr. Church’s mother’s family secret recipe. Even today, many claims it is impossible to replicate her unique flavor!

By 1955, Church’s had opened five drive-in restaurants and one drive-in carryout location in San Antonio. The business was so successful that Church had opened more than seventy stores across Texas, Mississippi, and Arkansas within two years.

In 1959, the company changed ownership, but the new owners kept the original name, “Church’s Chicken,” and decided to expand nationwide.

By 1967, over 200 franchise locations were open across the United States.

After experiencing substantial growth in other countries such as Canada, Mexico, and Jamaica during the 1970s and 1980s, Church’s Chicken became part of a larger restaurant chain owned by AFC Enterprises in 1992.

The merger allowed further expansion into even more countries worldwide, including Puerto Rico and Colombia.

Today, Church’s Chicken is still one of the most recognizable and beloved fast-food chicken chains in North America and beyond. With over 1,700 locations worldwide, the company has become a staple in many communities and serves delicious fried chicken daily.


Church’s Chicken Franchise Model

MetricAmount
Liquid Capital$1,000,000
Net Worth Req.$2,000,000
Investment$681,500 – $1,543,117
Franchise Fee$15,000
Units in Operation1010
Founded1952
Franchising Since1969

What Is the Franchise Fee Of Church’s Chicken?

The Church’s Chicken franchise fee is $15,000, which is a one-time payment made by independently owned and operated franchises to the parent company for the right to use the Church’s name and logo.


How much does it Cost to open Church’s Chicken Franchise?

The cost to franchise a Church’s Chicken restaurant typically ranges from $681,500 to $1,543,117, covering expenses like property leasing, training, equipment, and more.

Ongoing royalty fees of 5% of gross sales and 2% for Brand Fund fees are paid monthly.

Church’s Chicken requires franchisees to have at least $1,000,000 in liquid assets, a net worth of $2,000,000, and a credit score of 650+. Actual costs may vary based on factors such as location and restaurant size.

Menu

Church’s Chicken offers a variety of options, including chicken combos, family dinners, tenders, fried okra, coleslaw, mashed potatoes, corn on the cob, honey butter biscuits, and jalapeno peppers.

On the dessert menu, you’ll find treats like the Texas sheet cake cup and apple pie. Additionally, Church’s Chicken features seasonal seafood choices such as shrimp and fried fish.


What You’ll Need Church’s Chicken Franchise?

What You'll Need Church's Chicken Franchise
  • Candidates should have a desire to be part of a well-established brand with a distinct personality.
  • A minimum of five years of restaurant operations experience is required.
  • The commitment entails opening five restaurants within five years.
  • Eligibility criteria include a minimum of $1 million in liquid assets, a net worth of at least $2 million, and a credit score of 650 or higher.

Church’s Chicken Franchise Revenue, Profit & Margin

Through its commitment to providing value to franchisees, the company has maintained steady growth.

Based on the median franchise sales in 2021 of Church’s Chicken, which is $1,606,904, and assumed profit margin of 15%, the net profit of Church’s Chicken franchise is $241,035.

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%1606903.00
Rent10.63%(170733.44)
Insurance5.31%(85366.72)
Salaries21.25%(341466.89)
Franchise Royalty Fees5.31%(85366.72)
Utilities2.13%(34146.69)
Cost of Goods Sold (COGS)26.56%(426833.61)
Labor (Variable)13.81%(221953.48)
Total (Expenses)85.00%(1365867.55)
Net Profit15.00%241035.45

Also, with corporate-owned restaurants generating annual earnings exceeding $900,000, Church’s Chicken boasts the highest profit margin among billion-dollar restaurant companies, standing at 26.3 percent.


Failure Rate Of Church’s Chicken

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2019920885-35
2020885854-31
2021854849 -5

For the Franchised outlets:

  • In 2019, the failure rate was (35)/920×100≈3.80%
  • In 2020, the failure rate was (31)/885×100≈3.50%
  • In 2021, the failure rate was (5)/854×100≈0.59%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20191651650
2020165160-5
2021160161+1 

For the Company-Owned outlets:

  • In 2019, the failure rate was (0)/165×100≈0.00%
  • In 2020, the failure rate was (5)/165×100≈3.03%
  • In 2021, the growth rate was (1)/160×100≈0.62%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20191,0851,050-35
20201,0501,014-36
20211501,010-4

For Total outlets:

  • In 2019, the failure rate was (35)/1085×100≈3.23%
  • In 2020, the failure rate was (36)/1050×100≈3.43%
  • In 2021, the failure rate was (4)/1,014×100≈0.39%

According to the above-mentioned data, we can see that the franchised outlets for Church’s Chicken declined from 2019 to 2021, showing a failure rate between 3.80% and 0.59%.

On the other hand, for company-owned outlets, the failure rate of Church’s Chicken was quite high, lying in the range between 0.00% and 3.03% for the same period of time.

The company managed to increase it’s outlet in the year 2021, showing a growth rate of 0.62%.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Church’s Chicken franchise has declined in the years 2019-2021 showing a total failure rate between 3.23% and 0.39%.


Payback Period Of Church’s Chicken

Based on the median franchise sales in 2021 of Church’s Chicken, which is $1,606,904, we can calculate the payback period of Church’s Chicken.

AVERAGE INVESTMENT$1,112,308
AVERAGE REVENUE PER OWNER$1,606,904
AVERAGE PROFIT PERCENTAGE15%
AVERAGE PROFIT PER YEAR$241,035
AVERAGE PAYBACK PERIOD years

PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR

= 1112308/241035 = 4.6 = 4-5 Years based on median

The average investment for a Church’s Chicken Franchise is $1,112,308.

With an average profit percentage of 15%, the average profit per year is $241,035.

This means that the average payback period for a Church’s Chicken Franchise is approximately 4-5 years, and the total investment of $1,112,308 would be recovered within this period.

Potential franchisees interested in chicken can investigate opportunities with Slim ChickensBojangles, and Bonchon Chicken.


Church’s Chicken Comparison

CompanyChurch’s ChickenBonchon
Founded In19522002
Initial Investment$681,500 – $1,603,300$503,879-$1,099,004
Franchise-Fee$15,000$40,000
Total Outlet1,700300
Annual Revenue$786 Million$77 Million

Frequently Asked Questions 

What is the total number of Church's chicken franchises?

Church’s Chicken had over 1,500 locations worldwide as of latest July 2023.

Is it necessary to pay franchise marketing fees yearly?

The majority of franchise marketing fees are based on your monthly income. For example, if your typical monthly revenue is $25,000 and the franchisor charges a 2% marketing fee, you will owe $500 to the franchisor, which works out to $6 000 each year.

Can I get a refund on Church's Chicken Franchise fees?

In most cases, the franchise cost is non-refundable. Unless the franchise agreement specifies otherwise, you will not be reimbursed for the charge. However, if you cancel the arrangement within a set time frame, usually 30 to 45 days after signing the agreement, your franchise agreement may grant a return.

Does Church's Chicken Offer a Franchise?

Yes, Chruch’ Chicken offers franchise opportunities with a proven business model.

How much does a Church's Chicken franchise cost?

Opening a Church’s Chicken requires a franchisee and development fee of $15,000 and $20,000. And depending on the size of the restaurant, the total initial investment ranges from $191,300 to $1,101,600.

Who is the owner of Church's Chicken?

Church’s Chicken is owned by a parent company called Inspire Brands, which also owns Arby’s, Buffalo Wild Wings, and Rusty Taco.

Where is Church's Chicken Headquartered?

The headquarters of Church’s Chicken is in Atlanta, Georgia.

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