When assigning the Chick Fil A franchise, what consideration is given by the Assignor to the Assignee?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
ght, title and interest in the Franchise to Assignee; and
WHEREAS, all parties to the Assignment acknowledge that Chick-fil-A's consent to any transfer is required under the Franchise, and is necessary to ensure Chick-fil-A's right and ability to select and have only the most qualified, approved individuals personally operate the respective franchised Chick-fil-A restaurant businesses to attempt to achieve the highest sales and profits possible in a manner consistent with Chick-fil-A's Minimum Standards, Guidelines and image in the community in which such businesses are located and in the nation as a whole, and to diligently develop and personally promote the reputation and the goodwill of each of the businesses, the Marks, Chick-fil-A, and the System.
NOW, THEREFORE, FOR AND IN CONSIDERATION OF the promises, covenants, warranties and representations herein contained, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties to the Assignment, each intending to be legally bound, hereby agree as follows:
SECTION 1 – ASSIGNMENT AND ASSUMPTION
1.1 As of the Effective Date, Assignor, in consideration of $10.00 and other good and valuable consideration, hereby assigns, transfers and sets over to Assignee all the right, title and interest of Assignor in and to the Franchise, including the Franchise Agreement and its attached Lease(s) identified above, and any amendments and exhibits to t
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, the Assignor transfers all rights, title, and interest in the franchise to the Assignee in exchange for $10.00 and other valuable consideration. This transfer includes the Franchise Agreement, attached leases, any amendments and exhibits, and the business itself, encompassing any rights and benefits from Chick-fil-A's recognition programs.
In return, the Assignee assumes all of the Assignor's duties, obligations, agreements, commitments, and liabilities under the Franchise. This includes the Franchise Agreement, attached leases, and any related agreements or programs. The Assignee agrees to be bound by and faithfully perform all obligations as if they were the original operator.
Chick Fil A's consent to the assignment is contingent upon agreements, representations, warranties, and guarantees from both the Assignor and Assignee. Chick-fil-A also stipulates that the Assignor must maintain stop transfer instructions against the transfer of equity securities and include specific provisions in the Assignee's operating agreement to prevent unauthorized transfers of interests in the company.
It is important to note that Chick Fil A's consent to the assignment does not constitute approval of any future transfers of interest in the Assignee or any member or officer of the Assignee as an approved operator, unless that person was a previous signatory to the Franchise. Both parties also agree to provide Chick-fil-A with copies of organizational documents and allow Chick-fil-A to examine records to ensure compliance with the Franchise and Assignment agreements.