Chili's Franchise

Chili's Grill & Bar is a well-known, full-service restaurant established in 1975, and it began franchising in 1984. With its headquarters in Dallas, Texas, Chili's features a casual atmosphere and a varied menu with freshly prepared appetizers, chicken, beef and seafood entrees, hamburgers and other sandwiches, salads, barbecue ribs, fajitas, and other southwestern and Mexican-style cuisine, complemented by a full-service bar.

Franchise Description

The franchisor of Chili's is Brinker International Payroll Company, L.P. Franchise formats available include the Chili’s Grill & Bar and Chili’s Special Venue. While the Grill & Bar format is a full-service restaurant typically located in high-traffic metropolitan or suburban areas, the Special Venue format focuses on smaller spaces with a streamlined menu, ideal for non-traditional locations.

Training

Chili's ensures thorough training for franchisees. The managing owner or operating partner, along with up to ten managers, must complete an extensive 15-week initial management training program. Additionally, there are pre-opening training sessions held at certified training restaurants, followed by the presence of a franchisee support team during opening, based on necessity.

Territory

Franchisees are granted the right to operate their restaurant at an approved location. However, no exclusive territory rights are provided. This means franchisees may encounter competition from other franchisees, or company-owned locations within their area.

Obligations and Restrictions

Franchisees must designate a managing owner who meets specified criteria and is responsible for operations. Franchisees must use the premises solely for operating a Chili’s restaurant, meeting all health standards, and adhering to the franchisor's methods, standards, and specifications.

Term and Renewal

The initial franchise term is 20 years, with an option for renewal if certain conditions are met. The renewal term is also 20 years.

Financial Assistance

Chili’s does not offer direct or indirect financing nor does it guarantee any financial obligations for the franchisees.

Investment Overview

The estimated initial investment for a Chili's franchise varies based on location and format. Below are key initial investment estimates:

• Initial Franchise Fee: $40,000 - $60,000
• Leasehold Expense: $8,500 - $28,000
• Construction Costs: $500,000 - $2,500,000
• Opening Advertising: $5,000 - $10,000
• Initial Training: $60,000 - $250,000
• Working Capital: $20,000 - $30,000
• ESTIMATED TOTAL: $1,804,195 - $6,503,695

*The estimated initial investment range covers a Chili’s Special Venue to a full-sized Chili’s Grill & Bar.

Other Fees

In addition to the initial investment, franchisees are responsible for the following ongoing fees:

• Royalty Fee: 1.25% of gross sales
• Technical Services Fee: 2.75% of gross sales
• Advertising Production Fee: 0.5% of gross sales
• National Advertising Program (NAP) Fee: 2.22% - 4% of gross sales

Key Takeaways

• Established in 1975 with a robust franchise system beginning in 1984
• Extensive training programs are provided to ensure operational success
• High initial investment can range from $1,804,195 to $6,503,695
• No exclusive territorial rights - franchisees may encounter competition from nearby locations
• Ongoing fees include royalty and various advertising contributions

Ready to learn more? Download the full Franchise Disclosure Document (FDD) or fill out the free information request form on this page to get started on your journey with Chili's.