Which article in the Chick Fil A franchise agreement addresses the franchise relationship?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
expiration, termination or other cancellation of this Agreement.
SECTION 25 – FRANCHISE RELATIONSHIP
- 25.1 The relationship of the parties created pursuant to this Agreement is intended by each party to this Agreement to be and is that of a franchise between Chick-fil-A and the Operator, who is a separate and independent business owner, whether a person or entity, and neither party (nor any of their respective employees, agents, or representatives) shall incur any claim, debt, liability or obligation, other than as specifically set forth in this Agreement, to any person or entity, including without limitation the other party, for any action or omission undertaken pursuant to or as a result of this Agreement or under any other circumstances. The parties acknowledge and agree that the creation of the above described relationship and each party's respective ability to perform and to be legally recognized as being in and having the relationship as set forth above and not another during the term of this Agreement is part of the essence and a principal purpose of this Agreement.
- (a) Nothing in this Agreement makes or shall be deemed to make in law or fact the Operator (or any individual whose salary, wages or other compensation was or is to be paid by the Operator) a general or special agent, partner, legal representative, fiduciary, joint venturer, joint employer, co-employer or employee with or of Chick-fil-A. In all public records in the Operator's relationship with all other persons or entities, and in any document, the Operator agrees to indicate clearly the independent ownership and operation by the Operator of the Businesses. The Operator shall not make any express or implied agreements, warranties, guarantees or representations or incur any debt or obligation in Chick-fil-A's name or on its behalf or represent that the relationship of the parties hereto is anything other than that of a franchisor and franchisee who are separate and independent businesses. Chick-fil-A will not be obligated by or have any liability under any agreements made by the
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to the 2025 Chick Fil A Franchise Disclosure Document, Section 25 of the franchise agreement addresses the franchise relationship between Chick Fil A and the operator. This section clarifies that the relationship is that of a franchise, with the operator recognized as a separate and independent business owner. This distinction is a fundamental aspect of the agreement.
Section 25 emphasizes that neither party assumes the debts, liabilities, or obligations of the other, except as explicitly stated in the agreement. This reinforces the independent nature of the franchise arrangement. The operator is required to clearly indicate their independent ownership and operation in all public records and dealings, ensuring that they are not perceived as an agent, partner, or employee of Chick Fil A.
Furthermore, the operator is prohibited from making any agreements, warranties, guarantees, or representations on Chick Fil A's behalf, or from representing the relationship as anything other than a franchisor-franchisee arrangement. This protects Chick Fil A from being bound by unauthorized actions or representations made by the operator. Chick Fil A, in turn, is not liable for any agreements made by the operator.