Where must the Chick Fil A agreement be accepted and executed by Chick-fil-A for it to be valid?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
28.7 This Agreement shall not become valid against either party to this Agreement until it has been executed by the Operator and accepted and executed by Chickfil-A in the State of Georgia. TIME IS OF THE ESSENCE OF THIS AGREEMENT.
28.8 The Operator shall comply, and assist Chick-fil-A to the fullest extent possible, in Chick-fil-A's efforts to comply with Anti-Terrorism Laws (as defined below). The Operator certifies, represents, and warrants that neither the Operator (or, as applicable, the Operator-Owner) nor the Operator's (or, as applicable, the Operator-Owner's) property or interests is subject to being blocked under, and that they otherwise are not in violation of, any of the Anti-Terrorism
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, the franchise agreement must be executed by the operator and then accepted and executed by Chick-fil-A within the State of Georgia to be considered valid. This requirement is emphasized by the statement that "TIME IS OF THE ESSENCE OF THIS AGREEMENT," indicating the importance of adhering to this condition promptly. This clause ensures that the agreement is legally binding only after Chick-fil-A formally approves it in Georgia.
This stipulation has significant implications for prospective Chick Fil A franchisees. It means that regardless of where the franchisee is located or where they sign the initial agreement, the final acceptance and execution by Chick-fil-A must occur in Georgia for the agreement to be valid. This could necessitate travel or coordination to ensure the agreement meets this requirement. It also clarifies that Georgia law governs the agreement, which could be relevant in case of disputes.
Such a requirement is not uncommon in franchising, as franchisors often designate a specific jurisdiction for legal acceptance to ensure consistency and predictability in their contractual relationships. Franchisees should be aware of this provision and ensure that all necessary steps are completed to meet this requirement, as failure to do so could jeopardize the validity of their franchise agreement with Chick Fil A. This also applies to any Assignment agreements related to the franchise.