Does Chick Fil A engage in leasing activities as both a lessee and a lessor?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
- (h) Chick-fil-A and Operator acknowledge and agree that the actual title of the DK Lease may differ from the words "DK Lease" and the definitions assigned to Chick-fil-A and Licensor may also differ from the terms used in this Agreement, but for purposes of this Agreement the terms "DK Lease," "licensor", "licensee", "lessor" and "lessee" will be used to refer to the corresponding title and terms actually used in the DK Lease.
For example, the agreement granting Chick-fil-A the right to use and occupy the Location may be called a "License Agreement," and Chick-fil-A may be referred to as "Licensee."
(i) Chick-fil-A is as applicable subleasing or sublicensing to the Operator, subject to the terms and conditions of this Agreement, only those rights acquired by Chick-fil-A by virtue of the DK Lease.
C. Chick-fil-A has developed and is continuing to develop a mobile food truck program (the "Food Truck Program"), pursuant to which qualified operators choose to participate in and are authorized to lease and use a custom food truck from a third-party approved supplier (as defined below, the "Food Truck Lessor"), including equipment, furnishing and fixtures in and on customized, upfitted food truck (the "Food Truck"), to produce, hold and/or sell a limited menu of Chick-fil-A ® Products as an extension of the operators' respective, pre-existing businesses.
D. As part of the Food Truck Program, the Food Truck Lessor has agreed to assist Chick-fil-A with the Food Truck Program by directly procuring and leasing the Food Trucks to participating operators and managing the lifecycle and disposition of each Food Truck in accordance with the terms of each applicable food truck lease (as defined below, the "Food Truck Lease"). Subject to the terms of Section 7(c) of this Agreement, Operator will pay the lease rental payment and all other charges and payments described in the Food Truck Lease directly to the Food Truck Lessor per the terms of the Food Truck Lease;
b.
No Other Leases; No Amendments.
Other than the Food Truck Lease, Operator will not enter into any other lease agreements or other agreements allowing parties other than Operator or Chick-fil-A rights concerning possession, use, operation, or control of the Food Truck or any other food trucks without the prior written approval of Chick-fil-A and will not modify amend or extend the Food Truck Lease, including, without limitation, the time for payment or performance in any material respect of its obligations under the Food Truck Lease or any other agreement relating to Operator's use of the Food Truck without the express prior written consent of Chick-fil-A;
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to the 2025 Chick Fil A Franchise Disclosure Document, Chick-fil-A engages in leasing activities as both a lessee and a lessor. Chick-fil-A acquires rights to use and occupy locations through what is referred to as a "DK Lease." Then, Chick-fil-A subleases or sublicenses these rights to the Operator, subject to the terms and conditions of the franchise agreement. This arrangement positions Chick-fil-A as a lessee in relation to the Licensor under the DK Lease and as a lessor in relation to the Operator.
Furthermore, Chick-fil-A has developed a mobile food truck program. As part of this program, Chick-fil-A facilitates the leasing of food trucks to participating operators. Chick-fil-A has a third-party approved supplier referred to as the "Food Truck Lessor" that directly procures and leases the Food Trucks to participating operators. The operator then pays the lease rental payment and all other charges and payments described in the Food Truck Lease directly to the Food Truck Lessor per the terms of the Food Truck Lease.
In the context of the food truck program, Chick-fil-A's role involves arranging for the Food Truck Lessor to lease the food trucks to the operators. The Operator will not enter into any other lease agreements or other agreements allowing parties other than Operator or Chick-fil-A rights concerning possession, use, operation, or control of the Food Truck or any other food trucks without the prior written approval of Chick-fil-A and will not modify amend or extend the Food Truck Lease. This indicates that Chick-fil-A is involved in leasing activities related to both restaurant locations and mobile food trucks, acting as an intermediary or facilitator in these leasing arrangements.