How does Chick Fil A define 'Additional Profit' for an Additional Business?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
nitial Business for the month or (ii) in the case of an Additional Business, 50% of the Net Profit for Additional Business for the month;
- (g) "Additional Profit" as to a particular restaurant for each calendar month is (i) in the case of the Initial Business, 50% of the Net Profit for Initial Business for the month or (ii) in the case of an Additional Business, 50% of the Net Profit for Additional Business for the month; "Aggregate Additional Profit" for each calendar month is the sum of the Additional Profit for the month of all restaurants operated by you;
- (h) "Extra Profit" for each calendar month is an advance on Additional Profit in the maximum amount of $1,500; you are not entitled to retain an Extra Profit with respect to any additional restaurants;
- (i) "Daily Deposit" as to a particular restaurant including any associated food truck, for each calendar day is your daily Gross Receipts as adjusted for minor cash expenditures, cash overages and shortages and other cash received;
Source: Item 6 — OTHER FEES (FDD pages 27–40)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, 'Additional Profit' for an 'Additional Business' (meaning any restaurant beyond the franchisee's first) is defined as 50% of the 'Net Profit for Additional Business' for each calendar month. The 'Net Profit for Additional Business' is calculated by subtracting the 'Base Operating Service Fee' for the additional business from the 'Operating Profit' for that business during the month.
In simpler terms, Chick Fil A franchisees operating multiple locations share half of the net profit from each additional restaurant with Chick Fil A. The net profit is determined by taking the restaurant's operating profit (gross receipts minus expenses) and subtracting the base operating service fee. This formula dictates how profits are split between the franchisee and Chick Fil A for each additional business they operate.
This definition is important for prospective franchisees to understand because it directly impacts the potential profitability of operating multiple Chick Fil A restaurants. While the franchisee receives the operating profit, they must share a significant portion (50%) with Chick Fil A, which affects their overall return on investment for each additional location. This profit-sharing structure is a key element of the Chick Fil A franchise model and should be carefully considered when evaluating the financial viability of expanding beyond a single unit.