What is the 'Base Profit' amount for a Chick Fil A franchisee's first restaurant?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
- "Aggregate Operating Profit" for a calendar month is the sum of the Operating Profit for the month of all restaurants operated by you;
- (c) "Base Profit" for your first restaurant
Source: Item 6 — OTHER FEES (FDD pages 27–40)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, a franchisee's "Base Profit" for their first restaurant, referred to as the "Initial Business", is $1,000 per calendar month. This "Base Profit" only applies to the franchisee's first restaurant; they are not entitled to it for any additional restaurants they may operate.
The "Base Profit" is a component in calculating the "Net Profit for Initial Business", which is determined by subtracting the "Base Operating Service Fee", the "Base Profit", "Base Profit Offsets", and "Service Fee Offsets" from the "Operating Profit" for the month. The franchisee retains the "Base Profit" for themselves.
It's important to note that while the franchisee retains the "Base Profit", there are conditions under which this can be affected. If the "Aggregate Operating Profit" is insufficient to cover the "Base Profit", future "Aggregate Operating Profit" during the calendar year must be allocated to cover any existing arrearage of "Base Profit" before the franchisee is entitled to any future "Additional Profit". This means that in months where the restaurant's profit is lower, the franchisee may not actually receive the full $1,000 until the arrearage is covered by future profits.