In the context of the Chick Fil A Delivery Kitchen Agreement, what title is given to the franchisee?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
If Chick-filA offers a license to the Operator to operate a Business as a Delivery Kitchen Unit, which Chick-fil-A is not obligated to do, Chick-fil-A and the Operator will enter into a written delivery kitchen agreement pursuant to which Chick-fil-A subleases or sublicenses, as applicable, its rights and privileges under the particular DK Agreement, and the Operator accepts the sublease or sublicense as applicable and agrees to faithfully perform Chick-fil-A's obligations under the DK Lease (the "Delivery Kitchen Agreement") that governs the Operator's occupancy and use of the particular Delivery Kitchen Unit premises. To the extent granted to Operator by Chick-fil-A, the Delivery Kitchen Agreement attaches the particular DK Lease for the particular Delivery Kitchen Unit as an exhibit. Chick-fil-A does not license an Operator to operate a Delivery Kitchen Unit as an Initial Business. In the case of an Additional Business under this Agreement that is a Delivery Kitchen Unit, the Delivery Kitchen Agreement and its attached DK Lease for the Additional Business that is the Delivery Kitchen Unit is attached as Exhibit "A" to the applicable Additional Business Amendment for Delivery Kitchen and incorporated in and made a part of this Agreement by this reference. To the extent granted to Operator by Chick-fil-A, the Delivery Kitchen Agreement and its attached DK Lease 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 franchisee in the context of the Delivery Kitchen Agreement is referred to as the "Operator." This designation applies specifically when Chick Fil A offers a license to operate a business as a Delivery Kitchen Unit. The Operator then enters into a written agreement with Chick Fil A, subleasing or sublicensing rights under the DK Lease, and agrees to fulfill Chick Fil A's obligations as outlined in the DK Lease. This agreement governs the Operator's use and occupancy of the Delivery Kitchen Unit premises.
This distinction is important because Chick Fil A does not license an Operator to run a Delivery Kitchen Unit as an initial business. Instead, it is treated as an Additional Business under the existing Franchise Agreement. The Delivery Kitchen Agreement, along with its attached DK Lease, becomes Exhibit "A" to the Additional Business Amendment, replacing any standard lease agreement. This structure ensures that the operation of the Delivery Kitchen Unit is integrated into the broader framework of the Franchise Agreement.
The Operator's rights under the Delivery Kitchen Agreement are derivative of their status as an Operator under the main Franchise Agreement. Consequently, these rights automatically terminate upon the expiration or termination of the Franchise Agreement. The Operator is also obligated to comply with all terms, conditions, and covenants of the Franchise Agreement, as amended by the Delivery Kitchen Agreement. Any breach of the Franchise Agreement by the Operator constitutes a breach of the Delivery Kitchen Agreement, highlighting the interconnectedness of the two agreements.