How does Chick Fil A determine the Food Truck Usage Fee, and how often can it be re-determined?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 the then-current fair market rental value of the Food Truck. This valuation considers factors such as additions, subtractions, and modifications to the Food Truck, changes to the Food Truck Lease, market factors, inflation, and the passage of time. The Usage Fee compensates Chick-fil-A for the use of the Food Truck under the sublease of the Food Truck Lease.
Chick Fil A has the right to re-determine the Food Truck Usage Fee from time to time in its sole and exclusive business judgment. The updated Food Truck Usage Fee will be based on the then-determined current fair market rental value. This updated fee will be documented in a revised Food Truck License Summary Form, which will then be attached to the agreement as Exhibit A.
For a prospective Chick Fil A franchisee, this means that the cost of using the Food Truck can fluctuate based on various market and operational factors. It is important to note that these changes are at Chick Fil A's discretion. Franchisees should be prepared for potential adjustments to the Food Truck Usage Fee and factor this variability into their financial planning. Understanding the terms of the Food Truck Lease and how it impacts the Usage Fee is also crucial for managing costs effectively.