What is a 'DK Lease' in the context of the Chick Fil A agreement?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
(e) "DK Lease" means the written delivery kitchen agreement between Chick-fil-A and a third party owner, operator or manager of the premises where a "Delivery Kitchen Unit" (as defined below) is located pursuant to which the owner, operator or manager of the premises grants Chick-fil-A a lease or license to conduct a delivery kitchen restaurant business at the premise. If Chick-filA offers a license to the Operator to operate a Business as a Delivery Kitchen Unit, which Chick-fil-A is not obligated to do, Chick-fil-A and the Operator will enter into a written delivery kitchen agreement pursuant to which Chick-fil-A subleases or sublicenses, as applicable, its rights and privileges under the particular DK Agreement, and the Operator accepts the sublease or sublicense as applicable and agrees to faithfully perform Chick-fil-A's obligations under the DK Lease (the "Delivery Kitchen Agreement") that governs the Operator's occupancy and use of the particular Delivery Kitchen Unit premises. To the extent granted to Operator by Chick-fil-A, the Delivery Kitchen Agreement attaches the particular DK Lease for the particular Delivery Kitchen Unit as an exhibit. Chick-fil-A does not license an Operator to operate a Delivery Kitchen Unit as an Initial Business. In the case of an Additional Business under this Agreement that is a Delivery Kitchen Unit, the Delivery Kitchen Agreement and its attached DK Lease for the Additional Business that is the Delivery Kitchen Unit is attached as Exhibit "A" to the applicable Additional Business Amendment for Delivery Kitchen and incorporated in and made a part of this Agreement by this reference. To the extent granted to Operator by Chick-fil-A, the Delivery Kitchen Agreement and its attached DK Lease is incorporated in and made a part of this Agreement by this reference;
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, a 'DK Lease' refers to the written delivery kitchen agreement between Chick-fil-A and a third-party owner, operator, or manager of the premises where a Delivery Kitchen Unit is located. Through this agreement, the third party grants Chick-fil-A a lease or license to operate a delivery kitchen restaurant business at that location. This is relevant if Chick-fil-A offers a license to an operator to run a business as a Delivery Kitchen Unit, which Chick-fil-A is not obligated to do.
If Chick-fil-A does offer a license for a Delivery Kitchen Unit, Chick-fil-A and the operator will enter into a written delivery kitchen agreement. This agreement involves Chick-fil-A subleasing or sublicensing its rights and privileges under the DK Lease to the operator. The operator, in turn, accepts this sublease or sublicense and commits to fulfilling Chick-fil-A's obligations under the DK Lease. This agreement governs the operator's occupancy and use of the Delivery Kitchen Unit premises. The specific DK Lease for the Delivery Kitchen Unit is attached as an exhibit to the Delivery Kitchen Agreement, to the extent granted to the operator by Chick-fil-A.
Chick-fil-A does not license an operator to operate a Delivery Kitchen Unit as an initial business. However, in the case of an additional business under the agreement that is a Delivery Kitchen Unit, the Delivery Kitchen Agreement and its attached DK Lease for that additional business are included as Exhibit "A" to the applicable Additional Business Amendment for Delivery Kitchen. This amendment is then incorporated into and made part of the overall agreement. Therefore, the DK Lease is a critical component defining the relationship and responsibilities between Chick-fil-A, the operator, and the third-party property owner in the context of a delivery-focused Chick-fil-A operation.