What is a 'DK' according to the Chick Fil A franchise agreement?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to the provisions of the Franchise Agreement, this Agreement (including the DK Lease, the Equipment Lease Addendum and the DK Summary and their attached exhibits and schedules), Chick-fil-A will develop and equip the DK and deliver the Location to Operator for the Licensed Use under the terms and conditions of this Agreement and the DK Lease.
Upon termination of the DK Lease and/or this Agreement, any payment made by the Operator to Chick-fil-A or Concessionaire or any court will not: (i) reinstate, continue or extend the term of this Agreement; (ii) affect any notice previously given to the Operator; or (iii) operate as a waiver of the right of Chick-fil-A to obtain access to and possession of the DK Location(s) by proper suit, action, proceeding or remedy.
Notwithstanding anything to the contrary contained in this Agreement or in the Franchise Agreement, the terms of this Agreement and the Operator's use, occupancy, maintenance, repair and restoration of the Site are subject and subordinate to the terms, covenants, conditions, agreements and requirements of the DK Lease and any prime lease, ground lease or other title documents attached as exhibit(s) to the DK Lease.
A default by the Operator under the DK Lease will also be a default under this Agreement and the Franchise Agreement.
Subject to the terms and conditions of the DK Lease, if at any time Chick-fil-A or Licensor determines in the exercise of its sole and exclusive business judgment that the Site should be remodeled, refurbished, rebuilt or relocated, Chick-fil-A, Licensor, or as applicable, their respective agents and designees will have the right to reenter the Site and to remodel, refurbish, rebuild or relocate the DK and/or the Site, in accordance with Chick-fil-A's and/or Licensor's then-current policies and procedures for the remodeling, refurbishing, rebuilding and relocating of sites, including without limitation making such site selection and design, structural, remodeling, redecoration and other modifications and changes to the Site, Equipment, the Leasehold Improvements, design and décor, trade dress, color scheme and other things as Chick-fil-A and/or Licensor deems necessary or appropriate.
During the Term, Operator has the right to decide which Orders it will direct from the Designated Business(es) to the DK for fulfillment.
The DK will produce and/or hold in inventory all Ingredients, Products and Product components necessary to conduct the Business during the Term and will be independent of the Designated Business(es) with regard to operations, including storage and production.
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to the 2025 Chick Fil A Franchise Disclosure Document, 'DK' is referenced in the context of a 'DK Lease' and 'DK Location(s)'. While the document mentions the DK Lease and its implications for the Operator (franchisee) and Chick-fil-A's rights, it does not explicitly define what 'DK' stands for. The document indicates that the Operator's use and maintenance of the site are subject to the DK Lease, and a default under the DK Lease constitutes a default under the Franchise Agreement. Chick-fil-A retains rights to remodel, refurbish, rebuild, or relocate the DK and/or the Site. Upon termination of the DK Lease, Chick-fil-A has the right to access and possess the DK Location(s).
The document also states that Chick-fil-A will develop and equip the DK and deliver the Location to the Operator, and Chick-fil-A will not be liable for delays in delivering the DK Location due to certain uncontrollable events. The Operator has the right to decide which orders it will direct from the Designated Business(es) to the DK for fulfillment. The DK will produce and/or hold in inventory all Ingredients, Products and Product components necessary to conduct the Business during the Term and will be independent of the Designated Business(es) with regard to operations, including storage and production.
Given the context, a prospective franchisee should ask Chick Fil A for a clear definition of 'DK' to fully understand their obligations and Chick Fil A's rights related to the 'DK Lease' and 'DK Location(s)'. Understanding the specific meaning of 'DK' is crucial for assessing the potential risks and responsibilities associated with the franchise.