What does 'Equipment' refer to in the Chick Fil A Delivery Kitchen Unit agreement?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
- (b) Pursuant to the terms and conditions of this Agreement and the Equipment Lease Addendum attached to this Agreement as Exhibit B as it may be amended from time to time, Chick-fil-A will lease to Operator and has delivered, or will deliver to the Site, the Equipment (as defined below) and other property described in the Equipment Lease Addendum solely for use in the operation of the Delivery Kitchen Unit. "Equipment" means the equipment and other property delivered, or to be delivered to the Site, by Chick-fil-A as described in the Equipment Lease Addendum together with any replacements of and additions or accessions to the original equipment.
- (c) In consideration of the lease of the Equipment, the Operator will pay to Chick-fil-A when due, the Equipment Fee stated in Exhibit B.
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, the term 'Equipment' in the context of a Delivery Kitchen Unit refers to the equipment and other property that Chick-fil-A delivers, or will deliver, to the site. This is specifically detailed in the Equipment Lease Addendum, which is attached to the Delivery Kitchen Agreement as Exhibit B. The definition includes any replacements, additions, or accessions to the original equipment provided.
Chick Fil A will develop and equip the Delivery Kitchen. The franchisee, or Operator, leases this equipment from Chick-fil-A and is obligated to pay an Equipment Fee, as outlined in Exhibit B, for its use. This fee is consideration for the lease of the Equipment.
Chick Fil A retains the right to modify the Equipment used in the System, and the Operator must comply with these changes, even if it means incurring additional costs. The Operator's rights to possess and use the Equipment are contingent upon their status as a Chick Fil A Operator under the Franchise Agreement, meaning these rights automatically terminate if the Franchise Agreement expires or is terminated.