What document governs a Chick Fil A operator's occupancy of the restaurant premises?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
Chick-fil-A leases and subleases traditional restaurant premises to its Operators. The business terms for these leases and subleases vary depending on the location of the Chick-fil-A Restaurant. If you lease the restaurant premises from us, the term of any Lease for the restaurant premises is the same as the term of your Franchise Agreement. If you sublease the premises from us, you will be required to comply with the terms of the prime lease or ground lease between Chick-fil-A and the landlord. The term of any sublease for the restaurant premises is the same as the term of your Franchise Agreement or the earlier expiration or termination of the lease between Chick-fil-A and the landlord, whichever is shorter. -You will be required to make all rental payments to Chick-fil-A. The Lease attached as an exhibit to and a part of your Franchise Agreement governs your occupancy of the restaurant premises. See Items 5 and 6 for more information.
Chick-fil-A enters into Concession Agreements that govern the occupancy of non-traditional captive venue unit premises with the owners or managers of the captive venue unit premises. If Chick-fil-A offers you the opportunity to operate a captive venue unit whether as your initial business or as an additional franchised Chick-fil-A Restaurant, you and Chick-fil-A will enter into the Concession Sublicense Agreement in the form attached as an exhibit to the Additional Business Amendment for Captive Venue to your Franchise Agreement. The Concession Sublicense Agreement attaches the Concession Agreement (and, if applicable, any underlying prime lease or ground lease). In the case of any captive venue unit, the Concession Sublicense Agreement and its attached Concession Agreement incorporated by reference into your Franchise Agreement substitutes for the Lease(s) applicable to a traditional restaurant premises as to the captive venue unit. Under the Concession Sublicense Agreement, Chick-fil-A sublicenses its rights and privileges under the Concession Agreement to you, and you accept the sublicense and agree to faithfully perform Chick-fil-A's obligations under the Concession Agreement for the particular captive venue premises. You will be a sub-licensee (technically a sub-concessionaire) of the premises. The business terms for these Concession Agreements vary depending on the location of the Chick-fil-A Restaurant. If you sublicense the rights to occupy the captive v`enue restaurant premises from us, the term of the Concession Sublicense Agreement for the captive venue restaurant premises is the same as the term of your Franchise Agreement or the earlier expiration or termination of the Concession Agreement, whichever is shorter. You will be required to comply with the terms of the Concession Agreement. In most instances you will make any payments due to the premises owner or manager under the Concession Agreement directly to Chick-fil-A and Chick-fil-A will remit payment to the premises owner or manager. Chick-fil-A will remain liable to the premises owner or manager under the Concession Agreement. -See Items 5 and 6 for more information.
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.
If Chick-fil-A offers you the opportunity to operate a food truck as an extension and part of an existing Chick-fil-A Restaurant location, the terms and conditions for operating the food truck will be governed by your Franchise Agreement as amended by either the Food Truck License and Sublease Agreement or Food Truck License Agreement with attached Lease you will enter into with Chick-fil-A, each with its own attached food truck lease. Currently, in some instances, Chick-fil-A leases the food truck from a third party and you must sublease the food truck from Chick-fil-A. Under the Food Truck License and Sublease Agreement, Chick-fil-A licenses you to operate the food truck and subleases to you the right to use and occupy the food truck. You accept the license and sublease and agree to faithfully perform your obligations under the License Agreement and Chick-fil-A's obligations under the third-party food truck lease. Chick-fil-A will pay the lease rental payment to the third-party under the food truck lease and you will pay Chick-fil-A a food truck usage fee in lieu of making the lease rental payment described in the food truck lease. You will also pay directly to Chick-fil-A any payments other than the lease rental payment due under the food truck lease to the third-party. Chick-fil-A will remain liable to the third party under the food truck 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 specific agreement that governs an operator's occupancy depends on the type of Chick Fil A restaurant location. For traditional restaurants, the Lease attached to the Franchise Agreement dictates the terms of occupancy. For non-traditional captive venue units, a Concession Sublicense Agreement governs the occupancy of the premises. For delivery kitchen units, the Delivery Kitchen Agreement dictates the occupancy terms. Finally, for food trucks, the Food Truck License and Sublease Agreement or the Food Truck License Agreement with attached Lease governs occupancy.
For traditional Chick Fil A restaurants, the term of the Lease is the same as the term of the Franchise Agreement. If the premises are subleased, the operator must comply with the prime lease or ground lease between Chick Fil A and the landlord, and the sublease term is the shorter of the Franchise Agreement term or the term of the lease between Chick Fil A and the landlord. Operators are required to make all rental payments to Chick Fil A.
For captive venue units, the Concession Sublicense Agreement sublicenses Chick Fil A's rights to the operator under the Concession Agreement. The term of the Concession Sublicense Agreement is the shorter of the Franchise Agreement term or the expiration/termination of the Concession Agreement. Similarly, for delivery kitchen units, the Delivery Kitchen Agreement governs the occupancy, with the term being the shorter of the Franchise Agreement term or the expiration/termination of the DK Lease. For food trucks, the terms are outlined in either the Food Truck License and Sublease Agreement or the Food Truck License Agreement with attached Lease, depending on whether the food truck is subleased from Chick Fil A or leased directly from a third-party supplier.
It is important to note that these agreements also include waivers of certain rights, such as the right to trial by jury and the right to pursue class claims. Additionally, default on these agreements can lead to termination of the lease, sublease, or sublicense, as well as the Franchise Agreement itself, potentially resulting in loss of the franchise and financial liabilities.