Can Chick-fil-A re-determine the Food Truck Usage Fee?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
In consideration of the License granted in this Agreement and to compensate Chick-fil-A for the use of the Food Truck under the sublease of the Food Truck Lease granted in Section 4 of this Agreement, the Operator will pay to Chick-fil-A when due the usage fee(s) as set forth in the Food Truck License Summary (the "Usage Fee"), which will be in lieu of the lease rental payment described in the Food Truck Lease payable by Chickfil-A to BALC.
Chick-fil-A shall have the right from time to time to re-determine the Food Truck Usage Fee in its sole and exclusive business judgment based on the then current fair market rental value for the Food Truck due to additions, subtractions and modifications to the Food Truck, additional or different charges or other changes under the Food Truck Lease, market factors, inflation, passage of time or otherwise, and to update the Food Truck Usage Fee to an amount based on the then determined, current fair market rental, which will be set forth in a revised Food Truck License Summary Form and substituted and attached to this Agreement as Exhibit A and made a part of this Agreement.
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick-fil-A's 2025 Franchise Disclosure Document, Chick-fil-A has the authority to re-determine the Food Truck Usage Fee. The Food Truck Usage Fee compensates Chick-fil-A for the use of the Food Truck under the sublease of the Food Truck Lease.
Chick-fil-A can re-determine this fee based on its sole business judgment, considering factors such as the current fair market rental value, any changes or modifications to the Food Truck, additional charges under the Food Truck Lease, market factors, inflation, or passage of time. The updated Food Truck Usage Fee will be based on the then-determined current fair market rental.
This updated fee will be documented in a revised Food Truck License Summary Form, which will replace the existing Exhibit A and become part of the agreement. This allows Chick-fil-A to adjust the fees to reflect current market conditions and any changes to the Food Truck or lease terms, ensuring that the fee remains aligned with the fair market rental value.