Chick-fil-A, Inc. is the largest fast food chicken chain in the United States, based on domestic annual sales. Characterized by award-winning restaurant designs and architecture, the family-owned, privately-held company is strategically expanding and uniquely positioned for continued future growth. Chick-fil-A is nationally recognized as having strong franchised restaurant operators as demonstrated by a franchisee turnover rate of less than 5% per year and a franchisee acceptance rate of less than 0.4% per year. Chick-fil-A NNN leases have a corporate guarantee by Chick-fil-A, Inc; making them highly desirable to net lease investors nationally. When purchasing a Chick-fil-A ground-leased property, investors are buying the real estate upon which the Chick-fil-A restaurant is located. These ground-leased properties provide significant investment security given the nature of the real estate investment diligence conducted by Chick-fil-A’s real estate team, which generally pays for the design, construction, and equipment for all new stores. From a real estate fundamentals perspective, knowing that store locations and developments are chosen based on corporate goals for target markets; it is not surprising that new stores are typically located in high-traffic community epicenters and are often found as outparcel/pad sites at major shopping centers. The first Chick-fil-A restaurant opened in 1967 and now boasts over 2,100 locations in 46 states and Washington, DC.
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