Are all fees imposed by Chick Fil A uniformly imposed?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
These fees are imposed by Chick-fil-A and, except as expressly provided, are either (a) payable to Chick-fil-A, (b) payable to Chick-fil-A, as administrator, if determined by vote of Operators in your local or regional area, or (c) payable to the insurance company for premiums for workers' compensation, general liability, auto liability, and employment practices liability insurance coverages. All fees are non-refundable and are imposed uniformly except as expressly provided below.
The percentages used in computing payments based on Gross Receipts have been determined by Chick-fil-A in consideration of the set of rights being granted by Chick-fil-A, the drawing power of a Chick-fil-A Restaurant, the value of the Chick-fil-A system as a whole, the ratio between our investment and your investment, potential rates of return on investment, the ratio between what we think might be our potential return and yours, the amount which we have at risk, and Chick-fil-A's interests in obtaining a profit in light of competitive conditions. All payments made by you to Chick-fil-A are part of a single financial arrangement between you and Chick-fil-A which, taken as a whole and without regard to any designation or description, reflect the value of the rights being made available to you by Chick-fil-A and the services being rendered by Chick-fil-A during the term of the Franchise Agreement including its attached Lease(s). The percentages may vary among Operators depending upon when a franchise or site was obtained or leased as well as other factors. In unusual circumstances which include special costs, the fees paid by you may be higher than those outlined in this Item 6.
Pursuant to a Chick-fil-A internal rent policy effective beginning January 1, 2015 (the "Rent Policy"), your rent for a franchised Chick-fil-A Restaurant premises in a traditional location during
the duration of the policy (excluding any equipment) will not exceed 6% of the annual Gross Receipts of your franchised Chick-fil-A Restaurant business. Chick-fil-A's Rent Policy does not extend to, affect or limit in any way, your obligation to pay any other monies or charges due under the Franchise Agreement or any additional charges and expenses due under any Lease. Chick-fil-A's Rent Policy has been established unilaterally as part of Chick-fil-A's internal working procedures. Chick-fil-A's Rent Policy is not a part of any contract between Chick-fil-A and you and does not create any rights or expectations for you under your Franchise Agreement and its attached Lease(s), including the rent calculation report(s). Chick-fil-A's Rent Policy also does not amend, modify or affect any contract rights and obligations between Chick-fil-A and you as otherwise set forth in the Franchise Agreement and its attached Lease(s), including the rent calculation report(s). The application of Chick-fil-A's Rent Policy to individual situations may vary. Chick-fil-A's Rent Policy is subject to revocation and/or change at any time in the future as determined by Chick-fil-A in its sole and exclusive business judgment. Chick-fil-A's Rent Policy does not apply to occupancy charges for a captive venue unit or a delivery kitchen unit.
If none of our vendors provide cash handling system services in the geographic area where your Chick-fil-A Restaurant business is located, you will not pay these fees and expenses to us. If your Chick-fil-A Restaurant business is located in a mall, office building, captive venue or delivery kitchen location, you may not be required to pay these fees and expenses to us depending on a variety of factors, including the location of the mall or office building, its use restrictions and requirements, whether the owner or manager of the location collects customer payments, and other things. In these circumstances, you may incur similar fees and expenses by engaging a vendor directly or paying the vendor appointed by the owner or manager of the location or the owner or manager directly, to provide similar services.
Source: Item 6 — OTHER FEES (FDD pages 27–40)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, the fees imposed by Chick Fil A are generally imposed uniformly, but there are some exceptions. The fees are payable to Chick Fil A, to Chick Fil A as an administrator, or to the insurance company for premiums related to insurance coverages. All fees are non-refundable.
The document states that the percentages used in computing payments based on Gross Receipts may vary among operators. This variance depends on when a franchise or site was obtained or leased, as well as other factors. In unusual circumstances that include special costs, the fees paid by a franchisee may be higher than those generally outlined in Item 6 of the FDD.
Additionally, Chick Fil A's internal rent policy, effective from January 1, 2015, states that rent for traditional locations will not exceed 6% of annual Gross Receipts. However, this policy does not apply to occupancy charges for captive venue units or delivery kitchen units, and the application of the Rent Policy may vary in individual situations. The document also notes that if none of Chick-fil-A's vendors provide cash handling system services in the geographic area where the Chick-fil-A Restaurant business is located or if the Chick-fil-A Restaurant business is located in a mall, office building, captive venue or delivery kitchen location, the franchisee may not be required to pay these fees and expenses to Chick-fil-A.