Chili's Franchise FDD, Costs & Fees (2024)

KEY FRANCHISE STATS

All you need to know about this franchise in a snapshot

Initial franchise fee
$60,000
Investment required
$1,804,000 - $6,504,000
Royalty fee
4.00%

Chili's: Innovating Casual Dining with Tex-Mex Flair

Chili's Grill & Bar is a globally recognized casual dining franchise that has been delighting customers with its Tex-Mex inspired menu since its founding in 1975. The first Chili's was opened in Dallas, Texas, by Larry Lavine, with the aim of creating a fun, laid-back dining experience centered around quality food and friendly service.

Today, Chili's is headquartered in Dallas, Texas, and is part of Brinker International, Inc., which also owns other popular brands like Maggiano’s Little Italy.

Chili's began franchising in 1984 and has since grown to become a major player in the global casual dining industry. The brand is known for its signature dishes such as Baby Back Ribs, sizzling fajitas, and a variety of burgers, all served in a vibrant, family-friendly atmosphere.

What sets Chili's apart from many competitors is its focus on delivering a consistent and enjoyable dining experience across all its locations, whether domestically or internationally.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Chili's offers 2 types of franchises:

Type Initial Investment
Prototypical Chili’s Grill & Bar $4,229,695 to $6,503,695
Chili’s Special Venue $1,804,195 to $4,641,695

We are summarizing below the main costs associated with opening a Prototypical Chili’s Grill & Bar franchise.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

Prototypical Chili’s Grill & Bar

Type of Expenditure Amount
Initial Franchise Fee $40,000 - $60,000
Leasehold Expense $9,000 - $28,000
Pre-Construction $75,000 - $350,000
Construction Costs $2,000,000 - $2,500,000
Site Work $300,000 - $1,000,000
Exterior Signage $40,000 - $150,000
Furniture/Fixtures/Sound System/TVs $500,000 - $600,000
Kitchen/Bar Equipment $350,000 - $400,000
Opening Advertising $5,000 - $10,000
Initial Training $65,000 - $250,000
Opening Team Costs $100,000 - $150,000
Working Capital $20,000 - $30,000
Inventory $75,000 - $100,000
Bar/Kitchen Accessories $50,000 - $60,000
Liquor License Varies
Computer POS System/Kitchen display system/Installation $75,000 - $90,000
Online Ordering $695
Additional Funds (3 months) $525,000 - $725,000
TOTAL $4,229,695 - $6,503,695

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Number of units

2023
Franchised units

174

171

101

Company-owned units

1,059

1,064

1,131

Total units

1,233

1,235

1,232

Franchise Disclosure Document

Training 

Chili's Franchise provides a thorough and comprehensive training program designed to equip franchisees with the skills and knowledge needed to successfully operate their restaurant. The training program typically includes both classroom instruction and hands-on experience in an existing Chili's location.

  1. Operational Training: Franchisees receive in-depth training on daily restaurant operations, including food preparation, service standards, and kitchen management. This ensures that franchisees can maintain the high standards of quality and consistency that Chili's is known for.
  2. Management Training: The program also includes extensive training in business management, covering areas such as staff management, financial planning, inventory control, and customer service. This helps franchisees develop the necessary skills to run their business efficiently and profitably.
  3. Marketing and Brand Training: Chili's emphasizes the importance of brand consistency, so franchisees are trained in Chili's marketing strategies and brand guidelines. This includes learning how to implement national promotions and customize local marketing efforts to drive customer traffic and build brand loyalty in their specific markets.

Territory Protection

Chili's franchise offers territory protection to its franchisees, ensuring that each franchisee has an exclusive area where no other Chili's restaurant can be established. This territorial protection is outlined in the franchise agreement and is designed to prevent internal competition, allowing franchisees to fully capitalize on their designated market area. 

The specifics of the protected territory, including its size and boundaries, are determined based on factors such as market potential and population density.

This protection helps franchisees build a strong, loyal customer base within their region, providing them with the opportunity to maximize their sales and profitability without worrying about direct competition from another Chili's location nearby.

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