Based on median sales, at a 22% profit margin it will take around 5.5 years to recoup your investment. This is longer than other opportunities. You may not get a 22% profit margin which would elongate return on investment.
If you can’t wait for Chipotle to start accepting franchising, check out Moe’s Southwest Grill or QDOBA Mexican Eats. Both serve similar menu items as Chipotle. Moe’s franchise fee is $30,500 while QDOBA’s is $30,000.
To become an approved owner, one may require to invest $1 Million to $2 Million, including the $25,000 franchise fee.
The initial expenditure can be $1.2 million to $2.8 million, with an average of $2.2 million. This covers construction, equipment, and more. Owning a franchise entails continuous expenses in addition to the original investment.
How much does it cost to buy a Chipotle franchise?
Chipotle does not offer franchising opportunities currently. After McDonald’s invested in 1998, they requested Chipotle franchise eight locations. However, this failed and Chipotle bought them back when McDonald’s divested in 2006.
Why is Chipotle not franchised?
"The reason we don’t franchise is because we don’t need to," says Chipotle spokesperson Chris Arnold. Chipotle also doesn’t want to relinquish any control over its restaurant operations.
One reason for Chipotle’s success is its focus on quality management and service. Stores bring in around $2.2 million yearly in revenue and $480,000 in profit.
The average cost to open a fast food franchise ranges from $250,000 to over $1 million. Chipotle has a relatively low minimum investment of $315,000. This is partly due to its efficient operations.
Why Doesn’t Chipotle Franchise?
Chipotle strives to provide high-quality food consistent location to location, so having full control over its restaurants is essential for achieving this goal.
With careful planning and research, future owners can build a restaurant concept that stands out from competitors and satisfies customers with unique offerings.
Is it time for Chipotle to consider franchising? If Chipotle wants to compete on the worldwide stage, franchising could provide greater leverage as they expand.