Posts Tagged ‘chipotle franchises’

Chipotle Franchise Information

Saturday, July 30th, 2011

The renowned giant foil-wrapped burrito

Chipotle’s signature menu, the giant foil-wrapped burrito may not be that big but it surely is big enough to drive a massive success on its marketing campaigns and make the restaurant chain one of the most popular fast food franchises in the country today, and probably for the next decade. Culinary school graduate Steve Ells, founder of Chipotle, had always dreamed of establishing his own fine dining restaurant. Since he did not have enough capital to start his dream business, he opened the Chipotle Mexican Grill instead in 1993. He was hoping back then that it would earn him enough money to open his fine dining restaurant. The very first Chipotle location was in Denver. Unexpectedly, numerous customers flocked the restaurant. This caught the attention of investors and aspiring entrepreneurs. Many years after the foundation of Chipotle, Ells did not pursue his dream restaurant. Though it’s not a bad thing, considering that he currently sits at the top of a highly reputed and successful fast food service venture.

Review of the Chipotle franchise

Until now, Chipotle’s franchise system is far from the typical ones. With this, there are no Chipotle franchises, no branches for sale, and no other ways for investors to own a Chipotle franchise. The McDonald’s Corporation paid a lot of money for ownership right of Chipotle in 1998. In 2006, Chipotle went through IPO. Despite all these, Chipotle stays as a highly reputed fast food enterprise in the country; thanks to its high quality products and customer service. Many were surprised that Chipotle lacked an established franchise model, McDonald’s had a big say on the corporate operations of Chipotle during the years of its financial involvement. McDonald’s was also the company who helped boost Chipotle’s expansion to more than 500 stores in the country. Ells stayed in the company throughout the transition from private management to a restaurant supported by a public corporation. Ells intends to keep the operation as they are today, but he has not entirely dismiss the idea of offering the Chipotle franchise to interested entrepreneurs. This gives him more control over the company’s processes and also offers existing employees opportunities to climb up the corporate ladder as store supervisors and managers when new Chipotle fast food franchises open. It only shows that the company practices the culture of “promote from within”. Make sure you do your research before buying a franchise or any business. If you are thinking of buying a franchise, check out to get free information on franchise for sale listings as well as find franchise resales.

Additional Chipotle franchise information

You are to pay a lot of money if you are to buy a fast food franchise. Many parent companies require initial franchise fees that can go as much as $25,000 or even higher. Royalty fees range from four to eight percent of the net profits. Businesses adapt franchising in their operations that allows entrepreneurs to use their business methods and set up their own locations under minimal supervision. In Chipotle, it does not have to offer its business methods to other entrepreneurs, for it has enough resources to expand on its own. The management’s long-term expectations include a constant financial growth of 25 percent annually, should Chipotle open more than a hundred fast food locations within the next five years. Since the company is considered a public corporation, its financial sources are easily available.  The company has annual revenue of $1.8 billion and market capitalization of more than $1.8 billion. Its net income is around $34 million every year, with a five percent profit margin, which is the average in the fast food field. Chipotle also has a very minimal debt.

Investors eager to purchase a Chipotle franchise

Many entrepreneurs have Chipotle on their list of must-buy franchises. As soon as the company starts to offer franchise opportunities, investors won’t let such chance to simply pass by.

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