What determines the cost of the seasoned coater for Chick Fil A Operators?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
Chick-fil-A also has an interest in the proprietary seasoned coater used in the preparation of most Chick-fil-A brand chicken products. The seasoned coater is purchased by Chick-fil-A from the producer and is shipped directly to Chick-fil-A's authorized distributor(s). Payments to Chick-fil-A for the proprietary seasoned coater are received from the distributor(s) of the seasoned coater when the seasoned coater is purchased by the distributor(s) from Chick-fil-A. The distributor(s) then sells the seasoned coater to the Operators. Your cost for the seasoned coater depends on a pricing formula that includes a markup by Chick-fil-A that may change. Based upon the cost of ingredients to Chick-fil-A (including any freight charges paid to the producer) your cost will fluctuate.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 43–49)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, the cost of the seasoned coater for Operators is determined by a pricing formula that includes a markup by Chick Fil A, which is subject to change. The cost will fluctuate based on the cost of ingredients to Chick Fil A, including any freight charges paid to the producer.
Chick Fil A purchases the seasoned coater from the producer and ships it directly to Chick Fil A's authorized distributor(s). The distributors then sell the seasoned coater to the Operators. Payments to Chick Fil A for the proprietary seasoned coater are received from the distributor(s) when the seasoned coater is purchased by the distributor(s) from Chick Fil A.
This means that a Chick Fil A franchisee's cost for the seasoned coater is not fixed and can vary over time depending on market conditions and Chick Fil A's pricing strategies. It is important for prospective franchisees to factor in potential fluctuations in the cost of the seasoned coater when projecting their operating expenses and profitability. Franchisees should maintain open communication with Chick Fil A and its distributors to stay informed about any changes in the pricing formula or ingredient costs that may affect their bottom line.