"And the less complex, the easier it is to franchise. "Traditional fast-food is a less complex operation than a Chipotle or a sit-down restaurant," says Mark Kalinowski, lead restaurant analyst at Janney Capital Markets. "What�s more, our business model is so strong, we would rather not sell off our revenues to franchisees in exchange for only a small percentage of that.

On the backdrop of minimum wage battles and conflicts between franchisees and franchisors, the question may not be whether Chipotle should franchise, but whether other chains should follow its lead. Franchising has facilitated rapid growth for nearly every major … If you have interest in learning more about investing in the Golden Arches, you can do so by visiting The cost of a Moe’s restaurant tends to be more affordable than a McDonald’s, but that doesn’t mean it’s inexpensive. Jumpstart Your Business. "Companies tend to franchise because they need money to grow and/or operators to run their business. Visit our parent organization, Consumer Reports, for the latest on scams, recalls, and other consumer issues. The Both companies also have a history of investments from burger chains. Image credit: "That very much flies in the face of conventional industry wisdom, and it can be hard to do things like that if you have franchisees who don’t agree with those decisions or fall out of favor with them for some reason. "When you franchise, you give up control over how restaurants are run and that can compromise the experience," Arnold says. "Companies tend to franchise because they need money to grow and/or operators to run … Chipotle spokesperson Chris Arnold says the fast-casual restaurant doesn't need franchises for business purposes—and doing so could hurt their brand. New Chipotle CEO Brian Niccol made news in April when he implied that Chipotle franchise In the meantime, it may make sense to look for alternatives. Get heaping discounts to books you love delivered straight to your inbox. That's largely how McDonald's and Subway have managed to open more than 35,000 and 42,769 locations, respectively, over the last several decades. Why Chipotle Won't Franchise The mega-successful burrito chain says it probably won't go the franchising route. In return, the company gives the operators, or franchisees, a cut of the profits. The company's careful control is still a key part of what makes the burrito chain function as a fast-casual restaurant. So why doesn't Chipotle, which has just 1,681 restaurants — and says it eventually wants to replace all major fast food chains — consider franchising? Hayley Peterson Saturday Oct 4, 2014 at 5:00 PM. "SEE ALSO: The 4 Types Of Workers Behind Chipotle's Rapid Burrito-Making MachineOriginal content available for non-commercial use under a Creative Commons license, except where noted. "When you franchise, you give up control over how restaurants are run and that can compromise the experience," Arnold says. The short answer: It hasn't needed to. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level. That's largely how McDonald's and Subway have managed to open more than 35,000 and 42,769 locations, respectively, over the last several decades. "T he reason we don’t franchise is because we don’t need to," says Chipotle spokesperson Chris Arnold. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level. So why doesn't Chipotle, which has just 1,681 restaurants — and says it eventually wants to "T he reason we don’t franchise is because we don’t need to," says Chipotle spokesperson Chris Arnold. But Chipotle, which was founded in Denver in 1993, has always resisted franchising.After McDonald's divested in 2006, the burrito chain bought back the handful of franchises it had sold and became 100-percent company owned. Chipotle spokesperson Chris Arnold says the … “The burger chain made its first investment in 1998 and, by 2001, was the majority shareholder. The chain's 1,681 restaurants are nothing compared to true mega-chains, like McDonald's, which has more than 34,000 restaurants worldwide, or Starbucks and its 20,600-plus shops. "The reason we don�t franchise is because we don�t need to," says Chipotle spokesperson Chris Arnold. "The reason we don’t franchise is because we don’t need to," says Chipotle spokesperson Chris Arnold. "Companies tend to franchise because they need money to grow and/or operators to run … Franchising has facilitated rapid growth for nearly every major restaurant chain in the world, including McDonald's, Subway, KFC, Pizza Hut and Starbucks.When companies franchise, outside operators fund all the costs of building, opening and running restaurant locations. Today, Chipotle has only 17 restaurants overseas, with plans to open more company-owned stores internationally in the coming year. I understand that the data I am submitting will be used to provide me with the above-described products and/or services and communications in connection therewith. So why doesn't Chipotle, which has just 1,681 restaurants — and says it eventually wants to replace all major fast food chains — consider franchising? Almost every well-known restaurant chain is a franchise. Why Chipotle Doesn’t Franchise [Business Insider] Want more consumer news? "Either they need money to … Surely, the chain could find franchisees who would adhere to these standards. You will learn everything you need to know about testing the viability of your idea, writing a business plan, raising funds, and opening for business. This has worked very well for many fast food and quick-serve chains, so why isn’t popular burrito eatery Chipotle interested in opening franchises? Sometimes that means reviewing restaurants' security footage to make sure employees are doing their assigned jobs.The company also wants to maintain tight control over its food sourcing, without facing any potential pressure from franchisees, Arnold said. "Chipotle may seem huge right now, but it has a lot of expanding to do if it wants to catch up with the biggest players in the fast food business. Let us help you take the NEXT step.