What components are included in the additional lease/license costs for a Chick Fil A franchise?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
al Percentage Rent Breakpoint prorated on a monthly basis for the number of months that have elapsed in any given calendar year.
As the Operator of a site that is owned by Chick-fil-A (or a wholly-owned subsidiary of Chick-fil-A), you will not be obligated to pay Chick-fil-A Base Rent beyond the Percentage Rent due under the Lease as described above, subject to renewal and/or renegotiation with Chick-fil-A during the term of your Franchise Agreement and this Lease.
Additional Lease/License Costs
The amount of any Additional Lease/License Costs for the site (as that term is used and reflected in the chart above) could be different and set higher than $0.00 in certain situations. For example, if Chick-fil-A has purchased the primary site and then leases from a third-party and then subleases to you additional parking or other facilities either before or after the Commencement Date, then the Annual Percentage Rent Breakpoint will be adjusted on your Rent Calculation Report for the site to account for any Additional Lease/License Costs you are obligated to pay. If the additional parking sublease in the example above or any other similar additional lease/license cost item was $12,000/ year, or $1,000/ month, the Annual Percentage Rent Breakpoint would be set at $200,000 ($12,000 / 6%), not $0.00.
Additional Charges and Expenses
In addition to Rent, your monthly Lease payments to Chick-fil-A for this Site are subject to and will include any Additional Charges and Expenses due under the Lease (as such term is defined in Section 1 and as more specifically described in Section 3.3 of this Lease). Additional Charges and Expenses due under the Lease include, without limitation, taxes, common area maintenance (CAM) charges, and other additional or extra charges and rents.
Lease Changes
Your obligations and/or rental payments for this Site may be subject to renewal and/or renegotiation with Chick-fil-A during the term of your Franchise Agreement and this Lease. As a result, your monthly Lease payments to Chickfil-A could change, including, without limitation, the calculation of Base Rent, Percentage Rent, and Additional Charges and Expenses
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, additional lease/license costs for a site could be more than $0.00 in certain situations. For instance, if Chick-fil-A purchases the primary site and then leases from a third party, subleasing additional parking or facilities to the franchisee, the Annual Percentage Rent Breakpoint will be adjusted on the Rent Calculation Report. This adjustment accounts for any additional lease/license costs the franchisee is obligated to pay.
For example, if the additional parking sublease costs $12,000 per year (or $1,000 per month), the Annual Percentage Rent Breakpoint would be set at $200,000 (calculated as $12,000 / 6%) instead of $0.00. In addition to rent, the monthly lease payments to Chick-fil-A are subject to and will include any Additional Charges and Expenses due under the Lease, such as taxes, common area maintenance (CAM) charges, and other additional or extra charges and rents.
Furthermore, the franchisee's obligations and rental payments may be subject to renewal or renegotiation with Chick-fil-A during the term of the Franchise Agreement and Lease. As a result, monthly lease payments could change, including the calculation of Base Rent, Percentage Rent, and Additional Charges and Expenses. The actual Commencement Date may also vary from the projected Commencement Date, potentially affecting Base Rent and Percentage Rent terms. These terms may increase, decrease, or otherwise change if the actual Commencement Date differs from the projected date, in accordance with the Franchise Agreement and Lease terms.