Are amounts payable to Chick Fil A franchisees included in the 'Restaurant activity liability'?

According to Chick Fil A's 2025 Franchise Disclosure Document, the 'Restaurant activity liability' specifically excludes amounts payable to Chick Fil A franchisees. Instead, it comprises amounts payable to third parties, not franchisees, that originated in the restaurants. This includes amounts due to restaurant vendors and tax authorities.

Additionally, the 'Restaurant activity liability' includes accruals funded by restaurant markets for market or chain-wide purchases of products and services at the discretion of franchisee representatives. This means that funds set aside for collective purchasing decisions made by franchisees are also part of this liability.

For example, the contract liability related to Chick Fil A's franchisee advertising services is reflected in 'Restaurant activity liability' on the consolidated balance sheets. As of December 31, 2024, this advertising-related liability was approximately $15,536,000, and as of December 31, 2023, it was approximately $15,859,000. This indicates that advertising revenues are recognized over time as the advertising services are delivered to franchisees, and the corresponding liability is categorized under 'Restaurant activity liability'.