When is the additional franchise fee for a Chick Fil A franchise due?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
under its then-current restaurant close-out procedures (currently, within two and one-half months after termination or non-renewal).
Chick-fil-A may, but is not obligated to, offer you a license to operate one or more additional Chickfil-A Restaurant businesses under your Franchise Agreement. You must pay an additional franchise fee of $5,000 for each additional Chick-fil-A Restaurant business, whether for a traditional location, a captive venue unit or a delivery kitchen unit, payable in full when you sign the Additional Business Amendment atta
Source: Item 5 — Initial Fees (FDD page 26)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, if Chick Fil A offers a franchisee the opportunity to operate additional Chick Fil A Restaurant businesses under the existing Franchise Agreement, an additional franchise fee is required. This fee amounts to $5,000 for each additional restaurant business, whether it's a traditional location, a captive venue unit, or a delivery kitchen unit.
The additional franchise fee is payable in full when the franchisee signs the Additional Business Amendment, which is attached as an exhibit to the Franchise Agreement. Upon payment, this additional franchise fee is considered fully earned and nonrefundable by Chick Fil A.
This is a fairly standard practice in franchising, where additional fees are charged when a franchisee expands their operations. The non-refundable nature of the fee is also typical, as it compensates Chick Fil A for the administrative and legal work involved in amending the agreement and granting the additional franchise. Prospective franchisees should factor this cost into their expansion plans, understanding that it is a sunk cost once the amendment is signed.