What actions by BALC do not affect the status of a default under the Chick Fil A agreement?

According to Chick Fil A's 2025 Franchise Disclosure Document, if an operator defaults on their agreement, certain actions by BALC (presumably Chick Fil A's leasing or financing affiliate) will not impact the default status. Specifically, BALC can demand, receive, and collect any monies that are due or will become due after the default without this affecting the existing default, any notice of a lawsuit, action, order, or judgment related to the default.

This means that even if BALC takes steps to recover funds owed by the operator after a default has occurred, these actions do not automatically resolve the default. The default remains in effect regardless of BALC's efforts to collect outstanding payments. This is important for a prospective Chick Fil A franchisee to understand, as it clarifies that simply making payments after a default has been triggered does not necessarily cure the default or prevent further action by Chick Fil A.

This clause protects Chick Fil A's right to pursue all available remedies in the event of a default, even while accepting payments or pursuing collections. It ensures that the acceptance of funds is not interpreted as a waiver of Chick Fil A's right to terminate the agreement or pursue legal action. The franchisee remains responsible for fully resolving the default according to the terms of the agreement, and BALC's collection efforts are simply a means of mitigating financial losses without impacting the overall default status.

In practical terms, a Chick Fil A operator facing financial difficulties should proactively communicate with Chick Fil A and BALC to explore potential solutions rather than assuming that making partial payments after a default will resolve the issue. Understanding the implications of this clause can help franchisees make informed decisions and avoid further complications in the event of a default.