Chick-Fil-A's use of sale-leaseback capital
Chick-fil-A employs sale-leaseback agreements to fuel its expansion strategy, converting owned real estate into liquid capital while maintaining operational control. In this approach, Chick-fil-A sells restaurant properties to investors and leases them back under long-term agreements.
This tactic provides immediate funds for opening new locations, upgrading technology, and enhancing operations without incurring additional debt. It also allows Chick-fil-A to focus on its core business while outsourcing property management to real estate investors. Additionally, fixed lease payments create predictable occupancy costs, simplifying financial planning and reducing exposure to real estate market fluctuations.
By strategically leveraging sale-leasebacks, Chick-fil-A supports its growth while maintaining financial flexibility and operational efficiency, exemplifying its innovative approach to smart growth.
Contact Legacy to learn how this innovative strategy can help unlock the value of your dealership’s real estate and support your expansion.