What is a 'Concession Agreement' according to the Chick Fil A agreement?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
(g) The Operator will not make any agreement with Concessionor which does or could modify, amend, cancel or terminate the Concession Agreement.
(h) Chick-fil-A and the Operator acknowledge and agree that the actual title of the Concession Agreement may differ from the words "Concession Agreement" and the definitions assigned to Chick-fil-A as licensee or concessionaire and to Concessionor may also differ from the terms used in this Agreement, but for purposes of this Agreement the terms "Concession Agreement," "Concessionor" and "Concessionaire" will be used to refer to the corresponding title and terms actually used in the Concession Agreement.
(i) Chick-fil-A is sublicensing to the Operator, subject to the terms and conditions of this Agreement, only those rights acquired by Chick-fil-A by virtue of the Concession Agreement.
The Concession Agreement describes Concessionor's duties which Concessionor, and not Chick-fil-A, is obligated to perform.
If Concessionor fails to perform its duties under the Concession Agreement, the Operator must send Chick-fil-A written notice describing Concessionor's default in detail.
Upon receipt of the notice, Chick-fil-A will then promptly notify Concessionor and demand performance of the Concession Agreement.
In the event the Operator wishes to engage the services of an attorney to settle any disputes arising out of the Concession Agreement, all fees and costs will be borne by the Operator, it being understood that Chick-fil-A is under no obligation to bring or defend any action brought by or against the Operator or Concessionor.
- (j) The Operator acknowledges that there may be certain provisions in the Concession Agreement, including any provision against competition among the licensees or concessionaries of the overall premises in which the Site is located, requiring performance by other licensees or concessionaries within the premises or by the Concessionor.
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, the 'Concession Agreement' is referenced in relation to the rights and responsibilities of Chick-fil-A, the Concessionor, and the Operator (franchisee) concerning the site of the Chick-fil-A business. Chick-fil-A sublicenses rights to the Operator based on the terms of this Concession Agreement.
The Concession Agreement outlines the duties of the Concessionor, not Chick-fil-A, and if the Concessionor fails to meet these duties, the Operator must inform Chick-fil-A, who will then demand performance from the Concessionor. The Operator cannot make agreements with the Concessionor that could alter or terminate the Concession Agreement.
Chick-fil-A clarifies that the actual title of the Concession Agreement and the definitions of 'Concessionaire' and 'Concessionor' may vary from what is used in the agreement with the Operator, but the terms will still refer to the corresponding titles and terms used in the actual Concession Agreement. The Operator's rights regarding the site are subject to the terms and conditions of the Concession Agreement, and the Operator must not take any actions that violate the Concession Agreement or any related leases. Chick-fil-A can also use remedies available to the Concessionor to enforce its rights under the agreement.