What is the 'Concession Sublicense Agreement' in the Chick Fil A agreement, and what does it govern?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
which the owner or manager of the premises grants Chick-fil-A a license to conduct a restaurant business or concession at the premise. If Chick-fil-A offers a license to the Operator to operate a Business as a Captive Venue Unit, which Chick-fil-A is not obligated to do, Chickfil-A and the Operator will enter into a written concession sublicense agreement pursuant to which Chick-fil-A sublicenses its rights and privileges under the particular Concession Agreement, and the Operator accepts the sublicense and agrees to faithfully perform Chick-fil-A's obligations under the Concession Agreement (the "Concession Sublicense Agreement") that governs the Operator's occupancy of the particular Captive Venue Unit premises. To the extent granted to Operator by Chick-fil-A, the Concession Sublicense Agreement attaches the particular Concession Agreement for the particular Captive Venue Unit as an exhibit. In the case of a Business under this Agreement that is a Captive Venue Unit: (i) the signed Concession Sublicense Agreement and its attached Concession Agreement for any Initial Business that is a Captive Venue Unit shall be attached to this Agreement as Exhibit "A", in substitution for the Lease, and incorporated in and made a part of this Agreement by this reference; and (ii) the Concession Sublicense Agreement and its attached Concession Agreement for any Additional Business that is a Captive Venue Unit is attached as Exhibit "A" to the applicable Additional Business Amendment for Captive Venue and incorporated in and made a part of this Agreement by this reference. To the extent granted to Operator by Chick-fil-A, the Concession Sublicense Agreement and its attached Concession Agreement is incorporated in and made a part of this Agreement by this reference;
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 Sublicense Agreement' is a written agreement that comes into play if Chick-fil-A offers a license to an Operator to run a business as a Captive Venue Unit. Chick-fil-A is not obligated to offer this type of license. This agreement involves Chick-fil-A sublicensing its rights and privileges under a specific Concession Agreement to the Operator. In turn, the Operator accepts this sublicense and commits to fulfilling Chick-fil-A's obligations as outlined in the Concession Agreement.
The Concession Sublicense Agreement essentially governs the Operator's occupancy and operation of the Captive Venue Unit premises. It outlines the terms under which the Operator can use the site for the Chick Fil A business, including selling approved products and adhering to the operational standards set by the Franchise Agreement. The agreement ensures that the Operator is bound by the same duties and liabilities as Chick-fil-A would be under the original Concession Agreement, unless otherwise specified.
The rights granted to the Operator through the Concession Sublicense Agreement are not exclusive and are contingent upon the Operator's standing as a franchisee. Should the Franchise Agreement expire or terminate, the Operator's rights under the Concession Sublicense Agreement also automatically cease. Furthermore, any breach of the Franchise Agreement by the Operator will also be considered a breach of the Concession Sublicense Agreement.
For a prospective Chick Fil A franchisee, understanding the Concession Sublicense Agreement is crucial if they are considering operating a Captive Venue Unit. This agreement dictates the relationship between Chick-fil-A, the Operator, and the venue where the unit is located, ensuring all parties are aligned in their responsibilities and obligations. It is important to carefully review the attached Concession Agreement to fully understand the scope of the Operator's duties and the specific terms governing the Captive Venue Unit.