Chipotle Franchise Cost
A Chipotle Mexican Grill business focuses on creating a quality of dining that is unique in such a way that the service is as fast as a fast food chain yet the food is as good as a casual sit-in restaurant.
This would state a major reason why franchisees are opting to go to a Chipotle franchise.
We can begin this article with a brief history of Chipotle. The McDonald’s corporation has some linkages to Chipotle, because at one time, McDonald’s had investments on Chipotle. Unfortunately, the business relationship between McDonald’s and Chipotle is not that smooth-flowing, especially on the part of Chipotle, that’s why the two companies mentioned started to part ways.
This particular event in Chipotle history opened doors to further improvements of the said company. They were able to improve their services, particularly with making deals with franchise restaurants. This is good news for all the aspiring Chipotle franchisees out there, since they will be able to decipher that now, with Chipotle fully independent, also has developed its franchise managing potentials.
Corporate culture and emphasis on premium ingredients is one of the core components of a Chipotle business. This means that they regard business not only as a money making machine, but also as a tool for corporate growth and the improvement of each person involved in the business, including the franchisees.
Chipotle Mexican Grill has 700 stores over significant parts in the world. However, of these stores, only eight are currently classified as franchises. The remaining 692 are owned by the main corporation themselves. This is some sort of bad news for aspiring Chipotle franchisees because the above situation implies that there are but a few slots available for aspiring Chipotle franchises. One of the main reasons why this situation exists is because of the Food with Integrity program of Chipotle.
In this Food with Integrity program, the stores can be controlled more easily if they are corporate owned. This includes mandatory suppliers for primary ingredients such as beef, pork, chicken, and vegetables. This shows that Chipotle is some kind of lenient when it comes to the different operations involved in their locations, especially about food. Unfortunately, this Food with Integrity program closes doors for franchisees who want to be independent.
A franchise-oriented site mentions that currently, Chipotle has continued its actions of avoiding running a standardized franchise model. This means that at present, Chipotle is not yet selling franchise slots for aspiring Chipotle franchisees. They actually had an initial public offering or IPO in 2006, but it looked like that event proved to be the last, as of now. According to some, the lack of a standardized Chipotle franchise model is quite surprising, considering the good quality of food and services they are offering. This means that the exclusiveness of Chipotle proves to be strong.
The price of a franchising a Chipotle business is currently ranging from $20000 to $25,000 dollars or more. The royalty fees involved in Chipotle franchising costs four to eight percent of the salary of the franchise.