What is the DK Lease for Chick Fil A attached to?
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 DK Lease, which governs the occupancy and use of non-traditional delivery kitchen unit premises, is attached to the Delivery Kitchen Agreement. This agreement is an exhibit to the Additional Business Amendment for Delivery Kitchen to the Franchise Agreement. The Delivery Kitchen Agreement also includes any underlying prime lease or ground lease, if applicable.
For Chick Fil A franchisees, this means that if they are offered the opportunity to operate a delivery kitchen unit as an additional franchised Chick Fil A Restaurant, the terms of their occupancy are governed by the DK Lease. Chick Fil A sublicenses or subleases its rights under the DK Lease to the franchisee, making the franchisee a sub-licensee or sublessee of the premises. The franchisee is then obligated to fulfill Chick Fil A's responsibilities as outlined in the DK Lease for that specific delivery kitchen location.
The business terms of the DK Leases can vary depending on the location of the Chick Fil A Restaurant. The term of the Delivery Kitchen Agreement matches the term of the Franchise Agreement or the expiration/termination of the DK Lease, whichever comes first. Franchisees must comply with all terms of the DK Lease. In most cases, franchisees will make payments due to the premises owner or manager directly to Chick Fil A, who will then remit the payment. However, Chick Fil A remains liable to the premises owner or manager under the DK Lease.