What is the annual rent under the DK Lease for a Chick Fil A franchise?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
*The parties agree, subject to Chick-fil-A's then-current policies on rent for Delivery Kitchen Units, if any, Operator's obligation to pay the Monthly Use/Occupancy [Fee/Charge] Payable to [Chick-fil-A/Licensor] will be equal to the combined total annual amount of the applicable delivery commission fees or their equivalent and all marketing and promotion commissions or fees or their equivalent, plus all other costs and expenses that are due for each calendar month under the DK Lease. Operator's monthly payment obligation with respect to the Monthly Use/Occupancy [Fee/Charge] will be due in arrears within five (5) business days based upon cumulative Gross Receipts of the DK through the month then ended.
For further clarity regarding the applicable delivery commission fees or their equivalent due and payable under the DK Lease, Operator should review the DK Summary – Date Sheet and the DK Lease for the particular DK Location, which are attached respectively as Exhibits A and C to the Delivery Kitchen Agreement.
For further clarity regarding the applicable marketing and promotion commissions or fees or their equivalent due and payable under the DK Lease, Operator should review the DK Summary – Date Sheet
and the DK Lease for the particular DK Location, which are attached respectively as Exhibits A and C to the Delivery Kitchen Agreement.
Additional Notes:
DK Lease. The DK Lease for this Location, any Delivery and/or Promotion Agreement between Chick-fil-A and the lessor for the Location (the "Licensor"), and any other Master Services agreement between Chick -fil-A and Licensor is subject to amendment, renewal and/or renegotiation with Lessor for the Location during the term of this Delivery Kitchen Agreement. As a result, Operator's monthly Use/Occupancy Fee/Charge payments to [Chick-fil-A/Licensor] could change.
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, the annual rent under the DK (Delivery Kitchen) Lease is not a fixed amount but is instead referred to as a 'Use/Occupancy Charge.' This charge encompasses various fees, including rent, license fees, service fees, and marketing fees. The specific amount is detailed in the DK Summary attached as Exhibit A to the Delivery Kitchen Agreement.
The Use/Occupancy Charge is determined by combining the total annual amount of applicable delivery commission fees (or their equivalent) and all marketing and promotion commissions or fees (or their equivalent), plus all other costs and expenses due each calendar month under the DK Lease. The operator's monthly payment obligation is due in arrears within five business days, based on the cumulative Gross Receipts of the DK through the month ended.
It's important to note that the DK Lease, along with any Delivery and/or Promotion Agreement between Chick-fil-A and the lessor (Licensor), is subject to potential amendments, renewals, and renegotiations with the Lessor during the term of the Delivery Kitchen Agreement. Consequently, the Operator's monthly Use/Occupancy Fee/Charge payments to Chick-fil-A or the Licensor could change over time. For precise details regarding delivery and marketing fees, operators should consult the DK Summary – Date Sheet and the DK Lease for their specific location, which are attached as Exhibits A and C to the Delivery Kitchen Agreement.