What financial obligations remain after the termination of the Chick Fil A agreement?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
undertaken thereunder, which will survive until the Operator has fully performed the same), will expire automatically upon Chick-fil-A retaking possession of the Food Truck following the expiration or termination of this Agreement and the Operator's fulfillment of the Operator's obligations under this Agreement, including under the sublease granted in Section 4 of this Agreement. Notwithstanding anything to the contrary in this Agreement, the Operator further acknowledges and agrees that Chick-fil-A has the right, in Chick-fil-A's sole and exclusive business judgment, to terminate this Agreement, including the sublease granted in Section 4, and/or the Food Truck Program at any time for any reason or for no reason.
- c. The Operator will bear any and all risk arising from or related to termination of this Agreement. Upon termination of this Agreement, the Operator will remain liable for the then current outstanding balance of the Food Truck Usage Fee, the Food Truck Insurance Fee and any other payments due Chick-fil-A or BALC as provided in the Food Truck Lease and/or in this Agreement. The Operator agrees that upon default BALC may demand, receive and collect any monies due or falling due after the default without in any manner affecting the status of the default or any notice of suit, action, order or judgment related to the default. 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.
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- Survival. Upon the termination, expiration, or suspension of this Agreement as provided in Section 14, all obligations under this Agreement, including under the sublease granted in Section 4 of this Agreement and also including without limitation the obligations under the Franchise Agreement which are incorporated by reference into this Agreement, that expressly or by their nature are intended to survive the termination or expiration of this Agreement or the Franchise Agreement, including, but not limited to, limitations of liability, and the Operator's reporting, payment and indemnification obligations to Chick-fil-A and/or BALC, will survive the termination, expiration or suspension of this Agreement, including the sublease granted in Section 4 of this Agreement, the Food Truck Lease, and the termination of the Franchise Agreement, if applicable.
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- Communications; Notices; Designated Contact. All notices provided for in this Agreement will be deemed given on the day of hand-delivery or overnight delivery or three (3) days after being sent by registered or certified mail, if sent from the United States, or by the equivalent thereof if sent from other country or jurisdiction, return receipt requested, address to the party to be served at the following address:
If to Chick-fil-A: Chick-fil-A, Inc. 5200 Buffington Road Atlanta, Georgia 30349-2998 Attn: Lynette E. Smith
If to the Operator:
At the address set forth on the signature page of the Franchise Agreement
Or to such other address as may be designated by such party in a written notice to the other party.
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- Not Independent Franchise.
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, if the Food Truck Agreement is terminated, the Operator is responsible for the outstanding balance of the Food Truck Fee and the Food Truck Insurance Fee, as well as any other payments due to Chick-fil-A or the Food Truck Lessor as outlined in the Food Truck Lease or the Agreement. Any payments made by the Operator to Chick-fil-A, the Food Truck Lessor, or any court will not reinstate or extend the term of the agreement, affect any prior notices, or waive the right of the Food Truck Lessor or Chick-fil-A to repossess the Food Truck. All collected funds will be applied towards outstanding balances owed by the Operator.
If the Delivery Kitchen Agreement is terminated or expires, the Operator must surrender the premises of the Delivery Kitchen Location(s) to Chick-fil-A. However, the Operator remains liable for the balance of the Use/Occupancy Charge, the Equipment Fee, and any other sums due to Chick-fil-A under the Agreement, as well as any payments due to the Licensor as specified in the DK Lease or the Agreement. The Licensor can demand and collect any monies due after the default without affecting the default status or any related legal actions.
Furthermore, certain obligations of the Operator, and the rights of Chick-fil-A, under specified sections of the agreement (Sections 5, 14, 15, 18 through 24, 26, 27 and 28) will continue even after the expiration, termination, or cancellation of the agreement. These include limitations of liability, and the Operator's reporting, payment and indemnification obligations to Chick-fil-A and/or the Food Truck Lessor. Upon termination of all Businesses, Chick-fil-A will repay the working capital deposit to the Operator, minus any expenses or losses incurred by Chick-fil-A on account of the Businesses that were not paid or should not have been paid by the Operator. Chick-fil-A will determine the amount of deductions from this repayment.