Who administers the local or regional advertising funds for Chick Fil A?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
(or have previously voted) to implement a local or regional advertising fund or initiative, you will be required to participate and contribute to the fund or initiative. We administer the local or regional advertising funds, which are not audited. We will make the unaudited financial statements of your local or regional advertising fund available for your review upon your request. You and the other Operators in your area will establish the amount of the contribution by majority vote. As part of local, regional or national marketing efforts, Operators are periodically required to participate in temporary or permanent promotional campaigns, honor coupons and participate in giveaway promotions for food or drink items at their respective Chick-fil-A Restaurants, for which the Operators may not be reimbursed. You must participate in these promotional programs and campaigns and, at Chick-fil-A's election, your participation may be at your own cost, including the costs to purchase, lease and install all promotional campaign materials and devices, including counter cards, posters, banners, signs, photographs, give-away items and gift cards. 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.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 55–59)
What This Means (2025 FDD)
According to the 2025 Chick Fil A Franchise Disclosure Document, Chick Fil A administers the local or regional advertising funds. However, these funds are not audited, though Chick Fil A will make the unaudited financial statements available for review upon request.
If a majority of operators in an area vote to implement a local or regional advertising fund or initiative, participation and contribution to the fund is required. The amount of contribution is determined by a majority vote of the operators in the area. Chick Fil A owned restaurants also contribute to any local or regional advertising fund on the same basis as the operators.
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. Chick Fil A is not required to ensure that any operator benefits directly or pro rata from the expenditure of any advertising funds. Additionally, Chick Fil A is not required to spend any certain amount on advertising in an operator's area.