What effect does a payment made by the Operator have on the Chick Fil A agreement after termination?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination of the Food Truck Lease and/or this Agreement, any payment made by the Operator to Chickfil-A or BALC 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 possession of the Food Truck by proper suit, action, proceeding or remedy.
All monies collected will be deemed to be payments made in accordance with the terms of this Agreement or applied toward any outstanding balances owed by the Operator.
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, any payment made by the Operator to Chick-fil-A, BALC (presumably an acronym for a related entity), or any court after the termination of the Food Truck Lease and/or the Agreement will not reinstate, continue, or extend the term of the Agreement. Additionally, such payment will not affect any notice previously given to the Operator. It also will not operate as a waiver of Chick-fil-A's right to obtain possession of the Food Truck through legal means. All monies collected will be considered payments made in accordance with the terms of the Agreement or applied toward any outstanding balances owed by the Operator.
This means that if a Chick Fil A Operator's agreement is terminated, making a payment will not undo the termination or change any prior notices issued. The payment will simply be applied to any outstanding debts the Operator owes to Chick-fil-A or BALC. This is a crucial point for potential franchisees to understand, as it clarifies that termination is a definitive action, and subsequent payments will only address financial obligations, not the reinstatement of the franchise agreement.
This clause protects Chick Fil A's interests by ensuring that terminated Operators cannot use payments to delay or prevent the repossession of the Food Truck or to challenge the termination itself. It reinforces the finality of the termination process and allows Chick Fil A to proceed with regaining control of the franchise unit without legal complications arising from post-termination payments. Prospective franchisees should be aware of this provision and ensure they understand the conditions under which their agreement can be terminated and the implications of any payments made thereafter.