What is the Delivery Kitchen Agreement for Chick Fil A considered?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
Chick-fil-A enters into DK Leases that govern the occupancy and use of non-traditional delivery kitchen unit premises with the owners, licensors or managers of the delivery kitchen premises. Chick-fil-A only offers the opportunity to operate a delivery kitchen unit as an additional franchised Chick-fil-A Restaurant. If Chick-fil-A offers you the opportunity to operate a delivery kitchen as an additional franchised Chick-fil-A Restaurant, you and Chick-fil-A will enter into the Delivery Kitchen Agreement in the form attached as an exhibit to the Additional Business Amendment for Delivery Kitchen to your Franchise Agreement. The Delivery Kitchen Agreement attaches the DK Lease (and, if applicable, any underlying prime lease or ground lease). In the case of any delivery kitchen unit, the Delivery Kitchen Agreement and its attached DK Lease incorporated by reference into your Franchise Agreement substitutes for the Lease(s) applicable to a traditional restaurant premises as to the delivery kitchen. Under the Delivery Kitchen Agreement, Chick-fil-A sublicenses or subleases as applicable its rights and privileges under the DK Lease to you, and you accept the sublicense or sublease as applicable and agree to faithfully perform Chick-fil-A's obligations under the DK Lease for the particular delivery kitchen premises. You will be a sub-licensee or sublessee as applicable of the premises. The business terms for these DK Leases vary depending on the location of the Chick-fil-A Restaurant. If you sublicense or sublease the rights to occupy the delivery kitchen premises from us, the term of the Delivery Kitchen Agreement for the delivery kitchen restaurant premises is the same as the term of your Franchise Agreement or the earlier expiration or termination of the DK Lease, whichever is shorter. You will be required to comply with the terms of the
DK Lease. In most instances you will make any payments due to the premises owner or manager under the DK Lease directly to Chick-fil-A and Chick-fil-A will remit payment to the premises owner, licensor or manager. Chick-fil-A will remain liable to the premises owner or manager under the DK Lease. See Items 5 and 6 for more information.
Source: Item 10 — Financing (FDD pages 51–55)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, the Delivery Kitchen Agreement governs the occupancy and use of non-traditional delivery kitchen unit premises. Chick Fil A only offers the opportunity to operate a delivery kitchen unit as an additional franchised Chick Fil A Restaurant. If Chick Fil A offers you the opportunity to operate a delivery kitchen as an additional franchised Chick Fil A Restaurant, you and Chick Fil A will enter into the Delivery Kitchen Agreement in the form attached as an exhibit to the Additional Business Amendment for Delivery Kitchen to your Franchise Agreement. The Delivery Kitchen Agreement attaches the DK Lease (and, if applicable, any underlying prime lease or ground lease). In the case of any delivery kitchen unit, the Delivery Kitchen Agreement and its attached DK Lease incorporated by reference into your Franchise Agreement substitutes for the Lease(s) applicable to a traditional restaurant premises as to the delivery kitchen.
Under the Delivery Kitchen Agreement, Chick Fil A sublicenses or subleases as applicable its rights and privileges under the DK Lease to you, and you accept the sublicense or sublease as applicable and agree to faithfully perform Chick Fil A's obligations under the DK Lease for the particular delivery kitchen premises. You will be a sub-licensee or sublessee as applicable of the premises. The business terms for these DK Leases vary depending on the location of the Chick Fil A Restaurant. If you sublicense or sublease the rights to occupy the delivery kitchen premises from Chick Fil A, the term of the Delivery Kitchen Agreement for the delivery kitchen restaurant premises is the same as the term of your Franchise Agreement or the earlier expiration or termination of the DK Lease, whichever is shorter.
The franchisee will be required to comply with the terms of the DK Lease. In most instances, the franchisee will make any payments due to the premises owner or manager under the DK Lease directly to Chick Fil A, and Chick Fil A will remit payment to the premises owner, licensor, or manager. Chick Fil A will remain liable to the premises owner or manager under the DK Lease. Upon default of your lease, sublease or sublicense obligations or equipment rental obligations under the Delivery Kitchen Agreement for a delivery kitchen unit, your liability could include termination of your lease, sublease, sublicense or equipment rental, termination of the Franchise Agreement including its attached Lease(s) and loss of franchise, and/or payment of entire unpaid amounts and interest, costs of recovery, cost of collection and attorneys' fees and/or reimbursement of Chick Fil A's costs to perform the obligations you failed to perform together with interest.
The franchisee waives under the Delivery Kitchen Agreement the right to trial by jury, the right to pursue class claims and punitive and exemplary damage. Under the Delivery Kitchen Agreement, you waive the service of any notice of intention to re-enter or to institute legal proceedings and any and all rights to redeem the agreement or the Site, or to re-enter the Building or the Site, or to restore the operation of the agreement, after (i) re-entry by Chick Fil A, (ii) any warrant to dispossess or judgment in ejection or (iii) any expiration or termination of the agreement and the term.