Naperville Business Attorney on Chick-fil-A Franchises Operating Mere Feet from Each Other

Chick-fil-A,Naperville business law attorneyNearly two decades ago, comedian Lewis Black recounted an experience in Houston, Texas when he left a comedy club and saw a Starbucks in front of him. “Across the street from that Starbucks,” he said, “there was—a Starbucks. There was a Starbucks across from a Starbucks.” While the incredulous observation was part of Black’s comedy routine, an intersection with multiple Starbucks locations exists in Houston, and likely in many other major cities as well. Starting tomorrow, residents of Merritt Island, Florida can have a similar experience with Chick-fil-A.

As a business law attorney, I recognize how important choosing the right location is for franchisees. Sometimes, however, other factors can take precedence. It seems that the situation in Florida is a good example of how the maxim of “location, location, location” is not always exactly applicable.

587 Feet Away

Franchisee Kersh Peterson will open the doors to the first standalone Chick-fil-A location in Merritt Island, FL tomorrow, August 22, 2018. Peterson’s location is in a building that used to be a TGI Fridays outside of the Merritt Square Mall. Just inside the mall, however, is another Chick-fil-A location—one that has been in operation for several years. According to Google Maps, the two restaurants are 587 feet apart.

The two locations are owned by different people, as the company prohibits franchisees from owning more than one store. Chick-fil-A says that the rule encourages owners to be active in their business and in the community. Those who own many locations of other franchises often struggle with being personally involved with each store’s daily operations.

Two Different Roles

Chick-fil-A also maintains a real estate team that is responsible for deciding where new locations will open. The team’s decisions are based on corporate goals, target markets, and other business considerations.

It seems that the team’s choice to open a second Merritt Island location was based on more than just physical location. Local residents have shown a great deal of excitement over the opening of a Chick-fil-A with a drive-thru window—something that a mall food court cannot offer. A shopping center location, obviously, relies mostly on foot traffic, while a location with a drive-thru on a busy road appeals to an entirely different customer base.

There are no plans for the restaurant inside the mall to close in the foreseeable future. The owners of both locations, as well as Chick-fil-A as a franchise, are confident that the two stores will not only co-exist but that both will be financially successful.

Answering Your Franchise Questions

If you are considering buying a franchise, it is important to have a knowledgeable Naperville business lawyer on your side. We can help you with choosing a location, obtaining financing, and all other elements of getting your business started. Call 630-756-1160 for a confidential consultation at The Gierach Law Firm today.

 

Sources:

SComedy

Florida Today

The Takeout

Business Insider