What does 'Additional Business' mean in the Chick Fil A agreement?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) "Additional Business" means any quick-service food Business, other than the Initial Business, to be operated at the Site set forth on the additional business amendment (the "Additional Business Amendment") the forms of which are attached to this Agreement as Addendum "1-A" (Traditional Unit Sole Proprietorship), Addendum "1-B" (Traditional Unit Business Entity), Addendum "2-A" (Captive Venue Sole Proprietorship), Addendum "2-B" (Captive Venue Business Entity), Addendum "4-A" (Delivery Kitchen Sole Proprietorship), and Addendum "4-B" (Delivery Kitchen Business Entity) completed for the particular additional quick-service food Business pursuant to Section 2.6 below;
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, an "Additional Business" refers to any quick-service food business other than the initial Chick Fil A business. These additional businesses are operated at a site specified in an additional business amendment. The amendment forms vary based on the business structure, including sole proprietorships and business entities, and the type of unit, such as traditional, captive venue, or delivery kitchen. These forms are attached as addenda to the franchise agreement.
Chick Fil A may offer additional restaurant business opportunities that are governed by the company's current Franchise Agreement. This includes attached leases or, for captive venue units, a Concession Sublicense Agreement with an attached Concession Agreement, or for delivery kitchen units, a Delivery Kitchen Agreement with a DK Lease. The terms and conditions of these agreements may differ from the initial franchise agreement.
If a Chick Fil A operator does not notify Chick Fil A of their decision to accept an additional restaurant business opportunity in a timely manner, or fails to execute the necessary Additional Business Amendment or a new Franchise Agreement, it will be considered a rejection of the offer. In the event that the initial business agreement is terminated but one or more additional business agreements remain active, Chick Fil A has the right to designate one of the additional businesses as the new "Initial Business."
For each additional business, the operator pays an additional franchise fee of $5,000 upon execution of the amendment. This fee is considered fully earned and non-refundable once paid to Chick Fil A. The Additional Business is governed by the terms of the Franchise Agreement and the Assignment, as amended. The commencement date for the Additional Business is estimated by Chick-fil-A based on projections and the availability of existing restaurant businesses, but Chick-fil-A does not guarantee the opening date.