Coalition of Franchisee Associations

April 3, 2025

Chick-fil-A Pushing to $10 Mllion AUV

 According to their latest FDD (Franchise Disclosure Document)

5 comments:

Anonymous said...

Meanwhile, the pajama boys (and girls) at MCD are saying that the Operator should be happy with only a $300,000 Cash Flow !

Richard Adams said...

The following anonymous post is from March 27:
"Mcd uses cash flow EBITDA .That means Earnings Before Interest, Taxes, Depreciation and Amortization. That is a false number and is NOT what you put in your pocket. A true measure , as any good accountant will tell you, is Earnings AFTER Interest, Taxes, Depreciation, and Amortization. Combine that with skyrocketing costs and mandated reinvestment expenses, and operators have far less than they have had in the past!"
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Anonymous said...

$10 mil in only 6 days per week

Anonymous said...

One of the biggest challenges we face as McDonald’s owner/operators is that our average EBITDA is quickly eaten up by reinvestments. Between overpriced, McDonald’s-specific equipment, mandated dining remodels, and other CAPEX, there’s very little free cash flow left.

Meanwhile, G&A per restaurant keeps rising — with OTPs, PELs, facility maintenance, office staff, and more now essential just to keep up with system demands.

Contrast that with Chick-fil-A, where owner/operators don’t pay for capital expenditures. Most of their manager-partners, many with just two units, are likely earning more than 75% of McDonald’s franchisees — without the same risk or reinvestment burden.

And when it comes to long-term equity, McDonald’s continues to push for a system where you exit with as little as possible. It’s clear they prioritize supporting the next purchasing operator — as if it’s their capital to manage, not yours. The new 10-year cycle of mandated remodels and rebuilds just reinforces that.

Richard Adams said...


Chick will dominate the marketplace if they keep to one or two stores per operator. For years, I lived near a Chick-fil-A, where the operator was a guy in his forties. He ran a big Chick store and a mall SPOD across the street. He worked lunch six days a week and was usually around for the later hours. His father was a dining room host and attendant. His Mom backed up the drive-thru and front counter. His sister was the assistant manager.
How does a McDonald's Operator with 7 or 8 stores compete with that?
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This discussion usually leads to someone posting that "Chick operators have nothing to sell, they aren't building equity". That's true, but if a person has substantial income and you don't spend it all on big houses and fancy cars
but save and invest properly, there's no difference.
Well ... the difference is, your equity in McDonald's is determined by the corporate pajama boys.
Once a Chick operator has salted away their long-term savings, it's safe from corporate meddling.
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