How does Chick Fil A determine the Food Truck Usage Fee?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
Ingredients, promotional items, and other items by the Operator or otherwise will comply with and will otherwise abide by all applicable health, sanitation, food handling, food transportation and insurance requirements provided by law, the requirements contained in the Franchise Agreement, the Food Truck Lease and as otherwise required by Chick-fil-A (whichever provides the most stringent requirements). Without limiting the above, the Operator will not (and will not allow others to) transport any hazardous materials or anything other than Products, Ingredients, promotional items, and other items necessary for the safe, sanitary, and efficient operation of the Food Truck.
- c. Payment of Food Truck Usage Fee. In consideration of the License granted in this Agreement and to compensate Chick-fil-A for the use of the Food Truck under the sublease of the Food Truck Lease granted in Section 4 of this Agreement, the Operator will pay to Chick-fil-A when due the usage fee(s) as set forth in the Food Truck License Summary (the "Usage Fee"), which will be in lieu of the lease rental payment described in the Food Truck Lease payable by Chickfil-A to BALC. Chick-fil-A shall have the right from time to time to re-determine the Food Truck Usage Fee in its sole and exclusive business judgment based on the then current fair market rental value for the Food Truck due to additions, subtractions and modifications to the Food Truck, additional or different charges or other changes under the Food Truck Lease, market factors, inflation, passage of time or otherwise, and to update the Food Truck Usage Fee to an amount based on the then determined, current fair market rental, which will be set forth in a revised Food Truck License Summary Form and substituted and attached to this Agreement as Exhibit A and made a part of this Agreement. At Chick-fil-A's election, the program described in Section 14.12 of the Franchise Agreement shall apply to the Operator's payment obligations described in this Agreement with respect to the Food Truck and any other payment obligations of the Operator hereunder, and any adjustment or increases thereto.
- d. Additional Fees, Costs and Expenses.
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, the Food Truck Usage Fee is determined by Chick-fil-A based on several factors. The Usage Fee compensates Chick-fil-A for the use of the Food Truck under the sublease of the Food Truck Lease. This fee is in place of the lease rental payment that Chick-fil-A would otherwise pay to BALC. The specific amount of the Food Truck Usage Fee is detailed in the Food Truck License Summary.
Chick-fil-A has the right to re-determine the Food Truck Usage Fee periodically. This re-determination is based on Chick-fil-A's sole business judgment, considering factors such as the current fair market rental value of the Food Truck, any additions, subtractions, or modifications made to the Food Truck, changes to charges under the Food Truck Lease, general market factors, inflation, and the passage of time. The updated Food Truck Usage Fee will be reflected in a revised Food Truck License Summary Form, which will then be attached to the agreement as Exhibit A.
Furthermore, Chick-fil-A can elect to apply the program described in Section 14.12 of the Franchise Agreement to the Operator's payment obligations related to the Food Truck. This could involve adjustments or increases to these payment obligations. The Operator is also responsible for additional costs associated with the Food Truck, including the cost of products, ingredients, cleaning supplies, labor, and payments due under the Food Truck Lease.