Whether it’s their signature chicken fingers, crinkle-cut fries, or Texas toast, Raising Cane’s is the top choice when it comes to fast food.
Founded in 1996 by Todd Graves and Craig Silvey, the franchise has more than 600 locations in the United States and abroad.
Raising Cane’s is a family-friendly restaurant that offers high-quality food in a fast-casual atmosphere.
Opening a Raising Cane’s franchise is ideal for those looking to get into the fast-food business.
The franchise offers a strong support system and resources to help franchisees succeed.
Franchisees have access to management training, marketing materials, and operations manuals, among other resources.
Interested in learning more about Raising Cane’s franchise? Then read on as we discuss everything you need to know about Raising Cane’s franchise, from the history to the requirements.
About Raising
Raising Cane’s is a fast-food restaurant specializing in chicken fingers, fries, and Texas toast.
Founded in 1996 by Todd Graves and Craig Silvey, Raising Cane’s has become a staple of the fast food industry. With over 600 locations across the United States and abroad, it’s easy to find a Raising Cane’s near you.
Even though they are famous for their chicken fingers, they also have other scrumptious items on the Raising Cane menu, but it focuses on fried chicken items, and it is not very extensive.
Unlike other fast-food chains, what sets Raising Cane’s apart is its commitment to quality ingredients and customer service.
They source all their chicken from humanely raised chickens free of antibiotics or hormones.
Raising Cane’s also offers franchise opportunities for those interested in getting into the fast-food business.
Franchisees receive support from the company, including management training, marketing materials, operations manuals, and more.
The franchise also offers consultation services for those interested in remodeling an existing location or building a new one from scratch.
Raising Cane’s Franchise History
As mentioned earlier, Raising Cane’s was founded by Todd Graves in 1996.
The idea for the restaurant was initially a college dream when founders Todd Graves and Craig Silvey were enrolled in a business plan writing course at different universities.
Unfortunately, numerous investors turned down their original business plan, but that didn’t stop Todd and Craig from pursuing their dream.
After months of hard work in oil refineries, salmon fishing, and a few other odd jobs, they raised enough money to open the first Raising Cane’s location in Baton Rouge, Louisiana.
Due to its delectable food and welcoming ambiance, Raising Cane’s quickly became an instant hit with the locals.
The word spread fast, and soon enough, people were queuing up for their signature chicken fingers, crinkle-cut fries, and Texas toast.
By 2000, Raising Cane’s started offering franchise opportunities for those interested in getting into the fast-food business.
From then on, Raising Cane’s has continued to expand across the United States and abroad, with hundreds of locations open today.
Raising Cane Franchise Model
| Cost Or Fees | Amount |
|---|---|
| Initial Investment | $768,100–$1,937,500 |
| Franchise Fee | $45,000 |
| Royalty Fee | 5% |
| Number of Outlets | 600+ |
| Status | Not franchising anymore. |
How Much Does It Cost to Open a Raising Cane’s Franchise?
Raising Cane’s used to offer franchising opportunities, but it no longer franchises. When it did, the initial costs included a franchise fee of $45,000, which provided access to brand resources and training.
The total initial investment ranged from $768,100 to $1,937,500, covering equipment, fixtures, construction/remodeling, and working capital. Ongoing royalty fees of 5% of gross sales were also required to support advertising campaigns.
How Much Does A Raising Cane’s Owner Make A Year?
According to the data for Raising Cane’s franchised locations in 2021, there were a total of 567 active units that generated estimated sales of $2.377 billion. Dividing the total sales by the number of units gives us an Average Unit Volume of approximately $4,192,239 per location.
What Is the Profit Margin? – Generally, it is between 10%-20% profit margin, which is a common industry estimate. Assuming the minimum 10%, an individual Raising Cane’s owner could potentially earn an estimated annual profit of around $419,224.
This is how we calculated this figure:
| Financial Overview | Percentage of Revenue | Amount ($) |
|---|---|---|
| Individual Franchise Annual Revenue | 100% | 4192239.00 |
| Rent | 11.25% | (471626.89) |
| Insurance | 5.63% | (235813.44) |
| Salaries | 22.50% | (943253.78) |
| Franchise Royalty Fees | 5.63% | (235813.44) |
| Utilities | 2.25% | (94325.38) |
| Cost of Goods Sold (COGS) | 28.13% | (1179067.22) |
| Labor (Variable) | 14.63% | (613114.95) |
| Total (Expenses) | 90.00% | (3773015.10) |
| Net Profit | 10.00% | 419223.90 |
Note:The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.
The Advantages Of Being A Member Of Raising Cane’s
Earlier this week, the restaurant company unveiled a new integration of its 10-year-old management partner program, the Restaurant Partner Program.
Kumaran, also a chief operating officer, focuses on ensuring that partners have the resources they need to generate significant, long-term results.
Staff training, marketing tools, facilities, financial guidance, health concierges, work-life balance plans, and more are all part of this support.
Payback Period Of Raising Cane’s
With an investment of $1,937,500 and an estimated 10% profit margin, the yearly profit would be $419,224.
So, to find out how long it will take to earn back the initial investment:
Payback Period = Investment / Yearly Profit = $1,937,500/ $419,224=4.62 years
Based on these figures, it will take approximately 5 years to pay back the initial investment for Raising Cane. This time period could be longer or shorter depending on your sales, revenue, and profit figures.
Training Provided By Raising Cane’s
You can expect to receive comprehensive training and support from Raising Cane’s head office when you open your franchise.
This includes operational and management training, marketing programs, and access to the company’s resources, such as operational manuals and marketing materials.
Raising Cane’s also provides support for existing franchisees in the form of regular visits from their representatives, who help ensure that all locations are following company policies and procedures.
They also assist with store openings, remodels, supply chain management, and other services to help franchisees maximize their success.
Raising Cane’s Franchise Terms Of Agreement & Renewal
When you become a Raising Cane’s franchisee, you agree to the terms of their franchise agreement.
This Agreement is between you and the franchisor and sets forth the terms and conditions under which you will operate your restaurant.
The term of the Agreement is 20 years and includes two options for five-year renewals after that period has ended.
During the term of the Agreement, you will be expected to abide by all company policies and procedures outlined in the operating manual given by Raising Cane’s head office.
Raising Cane’s Franchise Obligations and Restrictions
As a franchisee, you are obligated to abide by all the terms and conditions of your franchise agreement.
This includes following all company policies and procedures as outlined in the operating manual given by Raising Cane’s head office.
As a Raising Cane’s franchisee, you must:
● Operate your restaurant in accordance with its standards and procedures
● Use only approved suppliers for food, equipment, and supplies
● Comply with all applicable laws and regulations
● Obtain and maintain all required licenses and permits
● Maintain adequate insurance coverage
● Pay all fees and other charges due under the Agreement.
Raising Cane’s Comparison
| Company | Raising Cane’s | Bonchon |
|---|---|---|
| Founded In | 1996 | 2002 |
| Initial Investment | $1,000,000 – $1,937,500 | $503,879-$1,099,004 |
| Franchise-Fee | $45,000 | $40,000 |
| Estimated Outlet | 560 | 300 |
| Annual Revenue | $1.5 Billion | $77 Million |
Conclusion
Raising Cane’s franchise is a great opportunity for those who are looking to get into the restaurant business.
The company has a proven track record of success and has a strong brand that is recognizable.
The franchise fee is reasonable, and the overall investment required is not too high.
The company provides good support to its franchisees, and the training program is comprehensive and helpful.
Whether you decide to finance your investment through a loan, investors, or by other means, with the right planning and dedication, you can be successful as a Raising Cane’s franchisee.
Frequently Asked Questions
Is Raising Cane's a Franchise?
Raising Cane’s no longer offers franchises. And currently, all its locations are owned by the company.
How much does a Raising Cane's franchise cost?
Raising Cane’s does not offer franchises anymore, but when it did, the initial fee to open Raising Cane’s franchise was $45,000, with a total initial investment range of $768,100 to $1,937,500.
Who is the Owner Of Raising Cane's?
Todd Graves is the founder and CEO of Raising Cane’s Chicken Fingers. He founded the company in 1996 and is still at the helm today.
How Many Raising Cane's Franchises Are Currently There?
As of 2024, there are over 600+ Raising Cane’s franchises in operation across the United States.
Is Raising Cane's A Good Investment?
Yes, Raising Cane’s is a great investment for those looking to invest in the restaurant industry.
The company has a proven track record of success, and they offer comprehensive training and support to their franchisees.
Is Raising Cane's Worth It?
If you have previous experience in the restaurant industry and have a passion for great customer service, Raising Cane’s may be worth it.
The company offers reasonable franchise fees and comprehensive training programs to help you get started.
Where is Raising Cane's headquartered?
The headquarters of Raising Cane is located in Boutan Rouge, Los Angeles.
References:
Raising Cane’s Chicken Fingers – Wikipedia
Amit Gupta
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.
