Estimated initial costs
Our cost estimates are accurate as of 2022 from Franchise Direct and include opening fees and expenses only. The location you choose for your Chili's franchise may result in higher or lower fees.
Franchise feesChili's franchise fees total around $50,000, which is more than the $37,000 average for the 200 largest franchises.
|Initial franchise fee||$40,000 to $60,000|
|Estimated total||$40,000 to $60,000|
Equipment feesEquipment fees total $540,000 for Chili's. This costs more than the $180,023 average for the top 200 franchises.
|Exterior signage||$15,000 to $80,000|
|Furniture, fixtures, sound system and TVs||$55,000 to $120,000|
|Kitchen and bar equipment||$190,000 to $400,000|
|Bar and kitchen accessories||$40,000 to $60,000|
|Computer point-of-sale system, kitchen display system and installation||$55,000 to $65,000|
|Estimated total||$355,000 to $725,000|
Real estate feesReal estate will set you back $1,712,500 for Chili's, which is more expensive than the average of $788,376 for the top 200 franchises.
|Leasehold expense||$5,000 to $25,000|
|Preconstruction||$45,000 to $300,000|
|Construction costs||$500,000 to $1,900,000|
|Site work||$50,000 to $600,000|
|Estimated total||$600,000 to $2,825,000|
Training feesChili's initial training costs total $155,000 — more than the nationwide average of $9,788.
|Initial training||$60,000 to $250,000|
|Estimated total||$60,000 to $250,000|
Inventory costsInitial inventory for Chili's shakes out to $14,000. This is less than the nationwide average of $53,119.
|Inventory||$8,000 to $20,000|
|Estimated total||$8,000 to $20,000|
Marketing costsAdvertisement and marketing costs total up to $7,500 for Chili's, beating out the nationwide average of $9,938.
|Opening advertising||$5,000 to $10,000|
|Estimated total||$5,000 to $10,000|
Personnel costsUniforms, name tags and the like make up personnel costs, and for Chili's it will run you $82,500. The nationwide average cost of personnel fees comes in at $22,818, which means you'll be paying more than average to outfit your employees.
|Opening team costs||$65,000 to $100,000|
|Estimated total||$65,000 to $100,000|
Other expensesMiscellaneous expenses for Chili's total $429,500 — more than the nationwide average of $69,970.
|Working capital||$12,000 to $22,000|
|Three months' additional funds||$225,000 to $600,000|
|Estimated total||$237,000 to $622,000|
How to financeSince the estimated total for Chili's is on the more costly side, we recommend following these steps to get fully financed:
- Go to the Chili's franchising website and review its financial requirements, including cash-on-hand requirements.
- Reach out to Chili's about in-house financing for franchisees.
- If in-house financing isn't available, look for online loans, bank loans and SBA loans to help meet the $2,991,000 estimated opening costs.
- Compare lenders based on amounts, interest rates and what types of personal and business credit history they accept.
- Once you settle on a lender, gather all required documents, including account statements and assets.
- Apply for financing online or in person as required by the lender.
What types of financing is available?You have several options when it comes to financing a Chili's — even if the cost is on the heavier side. What assets you have available will largely determine how much you need to borrow, and which option suits you best.
- Online loan. A number of online business lenders offer amounts up to $1 million, with some extending up to $5 million.
- Bank loan. Your personal credit will typically need to at least be good — 670 or higher — when it comes to getting a bank loan large enough to cover a significant portion of Chili's opening costs.
- SBA loan. While your personal credit score doesn't need to be as good to qualify for an SBA loan, they usually cost more than standard term loans from banks or online lenders.
Compare small business lendersYou may not need financing to cover the estimated $1,370,000. But if you need funds for other business ventures, select the loan amount, your time in business and revenue and your personal credit score to compare a selection of lenders.
We update our data regularly, but information can change between updates. Confirm details with the provider you're interested in before making a decision.
How Chili's stacks upCompare how Chili's holds up against two similarly sized franchises.
|Carlu2019s Jr.||Chili's||Five Guys|
|Average Franchise fees||$25,000||$50,000||$25,000|
|Average Equipment fees||$536,000||$540,000||$113,675|
|Average Real estate fees||$959,250||$1,712,500||$317,250|
|Average Training fees||$50,000||$155,000||NA|
|Average Inventory fees||$1,600||$14,000||$12,500|
|Average Marketing fees||NA||$7,500||NA|
|Average Licenses and permits fees||NA||NA||$10,000|
|Average Insurance fees||NA||NA||NA|
|Average Admin fees||NA||NA||NA|
|Average Personnel fees||NA||$82,500||NA|
|Average Other fees||$123,900||$429,500||$23,000|
Bottom lineChili's franchise costs run a total of $2,991,000. Before you decide to become a franchisee, compare the total costs against industry averages. And to learn more about financing read our guide to franchise financing.
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