Does Chick-fil-A grant exclusive or protected territories to its franchisees?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
s granted to you under the Franchise Agreement in connection with the operation of your franchised Chick-fil-A Restaurant business at the specific location(s) designated by Chick-fil-A.
You will not receive an exclusive or protected territory, express or implied. The Franchise Agreement contains no exclusive grant, exclusive area, exclusive territorial rights, protected territory or right for you to exclude, disapprove, control or impose conditions on the location, development or operation of current or future Chick-fil-A Restaurants. The sales and customer trading patterns that a Chick-fil-A Restaurant experiences at any particular time are subject to change by reason of many factors, including our ongoing development of Chick-fil-A Restaurants, and franchised Operators do not have a right and should not expect that these patterns will never change. Chick-fil-A has the right to establish other Operator-run, Licensee-run or company-owned or operated restaurants both within and outside the geographic and customer trading pattern areas surrounding your franchised Chick-fil-A Restaurant business location, and reserves the right to use other channels of distribution, such as the Internet, catalog sales, telemarketing, or other direct marketing both within and outside the geographic and customer trading pattern areas surrounding your franchised Chickfil-A Restaurant business location. Any internal policies that we may develop, apply and modify periodically in connection with decisions to develop new Chick-fil-A Restaurants do not grant you any contract rights, are not part of your contract, and do not modify or affect Chick-fil-A's or your contract rights and obligations under the Franchise Agreement. Chick-fil-A's internal programs and policies are subject to change or cancellation at any time by Chick-fil-A.
You will not receive an exclusive territory. You may face competition from other franchisees or licensees, from outlets that we own, or from other channels of distribution or competitive brands that we control.
Our affiliates may also own and operate Chick-fil-A Restaurants or control competitive brands. We are not required to pay you if we exercise any of the rights specified above outside or inside the geographic and customer trading pattern areas surrounding your franchised Chick-fil-A Restaurant business location.
Source: Item 12 — Territory (FDD pages 59–60)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive or protected territory. The Franchise Agreement contains no exclusive grant, area, territorial rights, or protected territory. Chick Fil A retains the right to establish other company-owned, operator-run, or licensee-run restaurants both within and outside the geographic and customer trading pattern areas surrounding a franchisee's location. Chick Fil A also reserves the right to use other channels of distribution, such as the Internet or direct marketing, in those same areas.
This means that a Chick Fil A franchisee may face competition from other Chick Fil A restaurants, including those operated by other franchisees, licensees, or the company itself. Competition may also come from other distribution channels controlled by Chick Fil A or from competitive brands. The sales and customer trading patterns at a Chick Fil A Restaurant are subject to change due to various factors, including Chick Fil A's ongoing development of new restaurants.
Chick Fil A may operate or license others to operate businesses competitive with its Operators and/or its Licensees under a name other than Chick-fil-A. Chick-fil-A is currently testing its affiliate New Mile Ventures, LLC's delivery kitchen concept called Little Blue Menu ®, which features several new virtual restaurants as well as offering Chick-fil-A products.
This lack of territorial protection is a significant factor for prospective franchisees to consider. It means that Chick Fil A can open new locations or utilize other distribution methods that could directly impact the sales and profitability of an existing franchise. While this allows Chick Fil A to expand its brand presence and market share, it also introduces a level of risk and uncertainty for individual franchisees who must compete with other outlets and channels.