Harold’s Chicken Franchise Cost, Profit & How to Get in 2024

Harold’s Chicken is a well-loved name for Chicago-style fried chicken in the United States. A Chicago native, Harold’s Chicken has flown high into plenty of states where they earned the city a reputation as one of America’s best-fried chicken. As the chain continues to expand, it has received significant interest from potential franchisees looking to join its unique and storied brands. In this blog post, you will learn all about Opening a Harold’s Chicken Franchise in the United States of America, such as How much it is going to cost you, how much money can you make, and everything else to get started in 2024.

About Harold’s Chicken

Harold’s Chicken Shack, a fast-food chain founded by entrepreneur Harold Pierce in 1950, remains one of the country’s few Black-owned fried chicken chains to this day. It was a straightforward concept to make a quality piece of fried chicken at an affordable price for the south side of Chicago. Those secret recipes and methods of cooking quickly caught on, and it wasn’t long before Harold’s chain expanded to other states.

For those who know what they are looking for The restaurant is a low-key, unpretentious place. Harold’s fried chicken and fish are specially seasoned, and handmade in small batches to order. The signature sauces are drizzled on top of the hot food, then everything is served with a side such as fries and cole slaw/bread. The chain has developed a strong reputation for its mouth-watering fried food over the years, and today it has become more than just another fast food joint as it is deeply woven into the fabric of Chicago.

When it comes to the fast-food fried chicken industry, Harold’s Chicken is a standout, offering an existing brand with a significant emotional connection to its customers and customer base making for a very lucrative franchise opportunity.

Harold’s Chicken Franchise Overview

Franchising has since become Harold’s Chicken’s main vehicle of growth as the brand looks to expand. Potential franchisees have the opportunity to be a part of an iconic brand with a strong customer base, and as Harold’s Chicken demand increases, so too does the potential for franchise success. Here are the basic details:

Why Choose Harold’s Chicken?

Choosing Harold’s Chicken as a franchise offers several advantages to franchisees:

Established Brand: Harold’s Chicken has been around for a long time and continues to build their fan base, especially throughout the Midwest where it has been one of the most popular chicken spots for multiple generations. The story continues below advertisement name is a brand that has established a reputation for serving high-quality fried chicken which attracts customers for the franchises.

Time-Tested Business Model: After decades of perfecting this system, the Harold’s Chicken model is not a start-up.

Training and Support: Franchisees receive detailed training in restaurant operations, food preparation, customer service, marketing, and more. It further offers continued support as and when needed to make sure that things run smoothly.

You read that right, and Harold’s Chicken aside from being a fried chicken joint serves a lot of other meals such as fish, shrimp, and sandwiches and sides to cater to different customers.

Community Connection: Harold’s Chicken roots go over more than just good food, but also a positive perception with the chain being closely embedded within the community.

Harold’s Chicken Franchise Cost Breakdown

Opening a Harold’s Chicken franchise requires a significant initial investment, but the potential for profit makes it an attractive option for entrepreneurs. Here’s a breakdown of the costs associated with starting a Harold’s Chicken franchise:

Franchise Fee: $35,000 This is a one-time franchise fee that allows you to use the Harold’s Chicken brand and business model. It includes the costs of training and operational and branding support.

Total Investment: $135,000 to $400,000 This will cover the equipment cost, leasehold improvements, marketing expenses, and working capital for the first few post-operative operating months.

Royalty: The royalty fee on gross sales is 5% for both old & new Harold Chicken franchisees. The franchise fee grants you the ongoing support of the franchisor, as well as the use of the Harold’s Chicken name.

Harold Chicken Advertising Fee: 2% of total sales to the Harold’s Chicken advertising fund. It assists with national and local marketing campaigns, by providing a marketing campaign fund supporting efforts to increase the brand.

Space Requirements and Store Setup

Location is one of the most important considerations for opening a Harold’s Chicken franchise. Space requirements for a Harold’s Chicken franchise vary based on restaurant concept & anticipated volume. Harold’s Chicken franchises traditionally operate from 1,500 to 2,500 square feet of space.

opt for high-traffic locations near shopping centers, office complexes, and busy streets. The restaurant must have its own parking, and it is enough for the customers to access easily.

The store setup includes:

Kitchen and Equipment: The kitchen should be equipped with commercial-grade fryers, grills, refrigerators, and freezers for making Harold’s famous chicken (along with other items on the menu).

Dining Area: Some Harold’s Chicken locations are carry-out only, but many franchise locations also feature a dining area with tables and chairs.

Drive-Thru: Depending on the location and customer demand, some franchisees may choose to include a drive-thru option, which can significantly increase sales.

Profit Potential and Return on Investment (ROI)

The profitability of a Harold’s Chicken franchise depends on things like demand, location, and how well it’s owned and managed. However, done correctly franchisees should be able to see a great return on investment within a few years.

Average Gross Sales: Although the sales of each Harold’s Chicken Franchise can vary, a franchise owner can expect between $600,000 and $1 million per year based on their location and demand for the products.

Net Margin: typically in the range of 15-20%, once food costs, labor, rent, and other operational expenses costs are factored in. However, with good sales and effective operations, franchisees can earn a net profit of between $90K – $200K annually.

ROI Timeline: Franchisees can expect to recoup their initial investment within 3 to 5 years, depending on the success of their location and the overall market conditions.

Steps to Get Started with Harold’s Chicken Franchise

Getting started with a Harold’s Chicken franchise is a straightforward process. Follow these steps to begin your journey as a Harold’s Chicken franchisee:

Due Diligence: Dive into the Harold’s Chicken franchise opportunity. Look at the Franchise Disclosure Document (FDD), which will help you see all of the costs, profits, and things you need to either bring with you or get in compliance with when starting your new franchise. Think about your funds and whether or not you will have the begin-up cash.

To Apply: Head to the Harold’s Chicken website or reach out to the company initially for information on file. They will ask you to share generic details regarding yourself, your expertise, and your monetary circumstances.

Franchise Application: If you pass the initial requirements, you will be sent a formal Franchise Application Form to fill out. This may contain background information on your finances, business experience, and choice of location.

Approval of Franchise: After submitting an application, pend a few interviews along with criminal background check by the team at Harold’s to confirm you are the right fit for them. Once approved, you will be provided with a franchise agreement.

Fill in the Franchise Agreement: Assuming everything goes well, you sign the franchise agreement and pay the franchise fee. This automatically psychologically enforces you to the rules and regulations established by the franchise.

Location Selection & Build-Out: Work with our Harold’s Chicken corporate team to find and build out your restaurant location The franchisor will help you choose the location, negotiate with the landlord, and design the store.

Training and Opening: Before opening your Harold’s Chicken franchise, you’ll undergo comprehensive training on restaurant operations, food preparation, and customer service. Once your store is ready, you’ll host a grand opening with support from the Harold’s Chicken marketing team.

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Conclusion

Harold’s Chicken franchise offers a chance for entrepreneurs to enter the thriving fast-food sector. Harold Chicken franchisee here has the potential to grow with a solid brand name, and even better very loyal customers (Long lines 95% of the time) & proven business model for many years to come. It is a big investment to start, but it can be quite profitable. Hopefully, this post will help you on your way to owning a Harold’s Chicken franchise in the United States and joining an established brand lineage in the USA.

If you love fried chicken or are researching top franchise opportunities to profitably invest your money, Harold’s Chicken Business Opportunity is the perfect solution for you.

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