factual

Is Bay Center an affiliate of Chick Fil A?

Chick_Fil_A Franchise · 2025 FDD

Answer from 2025 FDD Document

actors, a distribution fee and an allowance for fuel and freight costs from the CFA Supply warehouse to the Chick-fil-A Restaurants it will supply.

Our affiliate Bay Center produces Chick-fil-A branded lemon juice that is a proprietary principal ingredient used to produce proprietary Chick-fil-A branded lemonade. Bay Center is an approved supplier to supply lemon juice to Chick-fil-A Restaurants in geographic areas it operates. Bay Center may be the only approved supplier of lemon juice for the geographic area where it operates. Bay Center began operations in 2020. The lemon juice is purchased by Chick-fil-A's authorized distributor(s) from Bay Center and is shipped by Bay Center directly to Chick-fil-A's authorized distributor(s). The distributor(s) pays Bay Center for the proprietary lemon juice when the lemon juice is purchased by the distributor(s). The distributor(s) then sells the lemon juice to the Operators. If your franchised Chick-fil-A Restaurant is in a location Bay Center supplies, your cost for the lemon juice depends on a pricing formula Bay Center determines in the exercise of its sole and exclusive business judgment that includes a markup by Bay Center that may change. Based upon the cost of ingredients to Bay Center (including any freight charges) your cost will fluctuate.

You must purchase all of the following items from suppliers who are approved in advance by Chick-fil-A: all present and future items of food and drink; all items of non-food inventory intended for sale to or use by your customers; all ingredients, food products, produce, mixes, spices, cooking aides, wrappings, food and beverage containers;

Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 43–49)

What This Means (2025 FDD)

According to Chick Fil A's 2025 Franchise Disclosure Document, Bay Center is identified as an affiliate of Chick Fil A. Specifically, Bay Center produces Chick-fil-A branded lemon juice, a key ingredient in Chick-fil-A's lemonade. Bay Center is an approved supplier of lemon juice to Chick-fil-A restaurants within its operating geographic areas and may be the only approved supplier in those areas. Bay Center began operations in 2020.

Chick Fil A's officers may own an interest in Chick-fil-A and indirectly in its affiliates like CFA Supply and Bay Center. This arrangement means that Chick Fil A has a vested interest in Bay Center's operations and profitability, as it directly impacts the supply chain and product quality of Chick Fil A restaurants.

In 2024, Bay Center received $186,616,788 from Chick-fil-A's authorized distributors for the distribution of lemon juice to Chick Fil A Operators and Licensees in the geographic areas it services. This revenue is included in Chick Fil A's consolidated revenues. As a franchisee, understanding the relationship between Chick Fil A and its affiliates like Bay Center is crucial, as it highlights the integrated supply chain and the potential for Chick Fil A to influence costs and product standards.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.