What was the amount of franchise fees reported by Chick Fil A in 2023?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
- of the Initial Franchise Fee shall be deemed to be and maintained by Chick-fil-A as an initial payment of working capital for the Business(es) under this Agreement (the
"working capital deposit"). The Operator must pay such sum to Chick-fil-A in cash or negotiable instrument upon the Operator's execution and delivery of this Agreement.
- 3.2 If Chick-fil-A offers to the Operator a license to operate one or more Additional Businesses under this Agreement pursuant to Section 2.6 hereof, the Operator shall pay an additional franchise fee with respect to each such Additional Business of Five Thousand Dollars and No/100 Dollars ($5,000.00) (an "Additional Franchise Fee"), which when paid to Chick-fil-A shall be deemed fully earned and non-refundable. The Operator must pay such sum to Chick-fil-A in cash or negotiable instrument upon the Operator's execution and delivery of the Additional Business Amendment for each such Additional Business.
- 3.3 If Chick-fil-A offers to the Operator a license to operate a different business as the initial business under a new Franchise Agreement, and this Agreement is terminated as part of the re-franchise process, the working capital deposit portion of the Initial Franchise Fee under this Agreement in the amount of Five Thousan
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
Based on the 2025 Chick Fil A Franchise Disclosure Document, the initial franchise fee includes a $5,000 working capital deposit. If a franchisee is offered a license to operate one or more additional businesses, they must pay Chick Fil A an additional franchise fee of $5,000 for each additional business. This fee is considered fully earned and non-refundable upon payment.
If a franchisee is offered a license to operate a different business as the initial business under a new Franchise Agreement, and the current agreement is terminated as part of the re-franchise process, the $5,000 working capital deposit from the initial franchise fee can be carried over and applied toward the working capital deposit of the new franchise agreement. The franchisee would then need to pay the remaining balance of the initial franchise fee as outlined in the new agreement.
In summary, while the FDD specifies the amounts for initial and additional franchise fees under certain conditions, it does not explicitly state the total amount of franchise fees Chick Fil A collected in 2023. A prospective franchisee should ask Chick Fil A directly about the aggregate franchise fees collected in recent years to understand the overall financial dynamics of the franchise system.