How does Chick Fil A administer the use of collected advertising fees?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
- (iv) administer the use of any collected advertising fees, if any, for promotional activities, promotional materials, and national, regional and/or local advertising (See Section 17 of Franchise Agreement). Chick-fil-A's advertising program may include national, regional or local advertising in print, radio, television, out-of-home, and/or digital and social channels. Chick-fil-A's advertising is generated by in-house advertising talent and multiple agencies.
Chick-fil-A owned restaurants contribute to any national and any local or regional advertising fund on the same basis as Operators.
During fiscal year 2024 no funds were required to be contributed to a national advertising fund.
Chick-fil-A is not required to spend any certain amount on advertising in your area.
If Chick-fil-A requires you to contribute to the advertising fund or you contribute advertising fees to a local or regional fund and they are not all spent in the fiscal year in which they are charged, the remaining amounts are either returned or rolled over (depending upon the particular program) to the next year's budget.
You will not receive a periodic accounting of how advertising fees are spent.
Chick-fil-A's advertising accounts, if any, are not trust funds, and Chick-fil-A is not your fiduciary with respect to any advertising funds.
Chick-fil-A is not required to ensure that any Operator benefits directly or pro rata from the expenditure of any advertising funds. (See Section 17 of Franchise Agreement).
Chick-fil-A may offer to provide optional advertising support and services to Operators at the local, store, market or regional advertising level on a formal basis for a fee through our in-house advertising agency as an alternative choice for Operators to third-party advertising agencies. Operators have traditionally engaged third-party advertising agencies to provide these same types of additional advertising support and services. We also have assisted Operators in the past with other advertising support and services, and to the extent we were able, on an informal basis and without charging any additional fees, including providing certain advice and creative resources to support local, store, market or regional advertising initiatives by Operators. For these other types of advertising support and services, we intend to continue providing a similar level of advertising services and support, to the extent we are able.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 55–59)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, Chick-fil-A administers the use of any collected advertising fees for promotional activities, promotional materials, and national, regional, and/or local advertising. This advertising may appear in print, radio, television, out-of-home, and/or digital and social channels. Chick-fil-A utilizes both in-house advertising talent and multiple agencies to generate its advertising content.
Chick-fil-A owned restaurants contribute to any national and any local or regional advertising fund on the same basis as Operators. For the fiscal year 2024, no funds were required to be contributed to a national advertising fund. If Chick-fil-A requires contributions to the advertising fund, or if operators contribute advertising fees to a local or regional fund, any unspent amounts are either returned or rolled over to the next year's budget, depending on the specific program.
While Chick-fil-A administers local or regional advertising funds, these funds are not audited. However, unaudited financial statements of the local or regional advertising fund are available for review upon request. Chick-fil-A does not provide a periodic accounting of how advertising fees are spent, and the advertising accounts are not considered trust funds. Chick-fil-A is also not considered a fiduciary with respect to any advertising funds, and they are not required to ensure that any Operator benefits directly or pro rata from the expenditure of any advertising funds.
Chick-fil-A may offer optional advertising support and services to Operators at the local, store, market, or regional advertising level for a fee through their in-house advertising agency. Operators have traditionally engaged third-party advertising agencies for similar support and services. Chick-fil-A also assists Operators with other advertising support and services informally and without additional fees, including providing advice and creative resources for local, store, market, or regional advertising initiatives.