Franchises are one of the most lucrative types of restaurants to invest in for various reasons. Chick-fil-A real estate for sale are no exception. That’s why acquiring one as an investment opportunity is becoming increasingly popular.
In this article, you’ll see the benefits of purchasing such property and how to go about it.
Reasons to Consider Chick-fil-A
Chick-fil-A is a chain of fast-food restaurants with chicken as the major meal item. Other popular things on their menu include waffle fries, sandwiches and wraps, and biscuits. Many people love them because it’s kid-friendly and offers catering services. Having been around for a long time, they’re very successful, with over 2000 outlets in 43 states and the capital city.
That’s because, unlike some other retail or restaurant chains, Chick-fil-A has an inclusive franchising operation. It involves giving opportunities to local entrepreneurs looking to build their businesses using the famous brand. That’s why they were able to introduce their fast food outlets in various communities across the country.
Becoming a Chick-fil-A Operator
Becoming an operator goes beyond buying Chick-fil-A real estate. It involves other essential things like understanding the company and how they run their business. This process is vital because it helps you determine if it’s the right franchise opportunity for you, depending on your desires. There are specific things you must know as highlighted below:
- Cost and Control
There’s an aspect of the Chick-fil-A franchise opportunity that everyone knows about- the $10,000 franchise fee. So many people wrongly assume that that’s the total extent of the operator’s cost. However, the owner still has some operational charges for which to pay. It’s only that the company covers most of the payments, especially if it’s a startup.
That’s because the establishment must retain its control over the franchise. It’s a significant difference between a Chick-fil-A NNN for sale and other fast food NNN properties. What that means is that the operator is more like a business manager than the owner. However, buying out an already established location may involve some differences.
- The Choice of Operators
The establishment makes over four million dollars yearly and doesn’t achieve that by handing it over to just anyone. Thus, before checking listings of Chick-fil-A for sale, you must know what the company expects from its franchisees or operators. Firstly, they want people who aren’t looking for a passive investment venture, which automatically rules out many individuals.
Hence, you must ensure that you’re ready for a hands-on experience with this franchise. Also, you must have a certain amount of business knowledge and a good portfolio or references that would make you stand out. The reason for that is Chick-fil-A’s operator selection process is tight, with over ten times more applicants than the franchise can accommodate.
Chick-fil-A NNN Properties
Meanwhile, the company may not own the land or structure on which the restaurant sits. That’s where the Chick-fil-A real estate for sale presents an investment opportunity because the establishment leases from the owner. Buying such property will put you in the position to earn steady annual returns from long-term rent with minimal risk and responsibilities.
Therefore, chick fil a real estate is a triple net investment with leases lasting ten to 20 years. The return is also called the cap rate and though low, suggests stability which allows for a raise in rent after a certain period. While most of the properties available are existing restaurants, it’s also possible for some newly-constructed ones to be up for sale.
A new Chick-fil-A ground lease property will be more expensive than the older ones but will have a lower cap rate. Consequently, that of the stores in use depends on the amount of time left on the lease compared to the initial agreement. Of course, that would also vary based on the location or state and maybe the influence of the real estate market in the area.
Benefits of This Investment
This type of real estate investment has various advantages for the owner. That includes the primary benefits of triple net lease properties and other peculiarities. We’ve highlight some of them here:
- Minimal Risks and Responsibilities
This benefit is one reason why the triple net lease opportunity is attractive to many investors. That’s because there are minor risks involved as the owner doesn’t exactly take up an active landlord role. The tenant, which is the Chick-fil-A franchise, bears all the responsibilities involved in operations. That includes the various running costs incurred.
- No Prior Restaurant Experience
As the owner of the property, you won’t be involved in the business of the restaurant. Hence, you don’t require any prior food service or even any business experience for that matter. That’s a better deal, considering the picky process of the franchisor’s choice of operators as aforementioned. You get to be passive on this end of the table.
- Payment Stability
Since the triple net leases are usually for lengthy periods, the payments received as rent are too. Therefore, it provides a stable income source for the owner(s) or investors because of the long-term occupancy. Besides that, there’s also room for an increase in the cap rate as time goes on, even though it may not be much. That means more returns on the initial investment.
- Less Likelihood of Defaults
Generally, the leases are difficult to default when your lawyers draw up a solid agreement. Unfortunately, some individuals couldn’t care less about legally binding documents. However, you’d have less to worry about with a reputable brand like Chick-fil-A. That’s because they have integrity as a well-known organization and has a brand name to uphold.
Acquiring a Chick-fil-A Property
After getting all the necessary information, the next thing to consider is finding and buying the property. There are two significant steps to achieving that, and they’re as follows:
- Find the Right Agency or Platform
It’d help if you didn’t downgrade the importance of finding the right platform or agency to use. That’s because real estate agents have the appropriate experience and network to guide and help you. As an investor, the searching and buying process may be overwhelming, especially if you’re new to the industry.
- Check Property Listings
Now that you’ve experienced professionals on your side, you can go ahead to check property listings. Start by searching for “Chick-fil-A real estate for sale” and filter with the features you want, like location and price. You must also ensure that there’s a secure net lease before committing to the place.
Final Thoughts
Triple net or NNN investing is one of the ways savvy investors diversify their investment portfolios. Besides the obvious benefits of generating revenues with minimal expenses from your end, triple net investing is a passive income source.
Suppose you wish to get started, visit Buy NNN Properties and lets get started.
