Where can I find a detailed description of Chick Fil A's leasing arrangements?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
(e) "DK Lease" means the written delivery kitchen agreement between Chick-fil-A and a third party owner, operator or manager of the premises where a "Delivery Kitchen Unit" (as defined below) is located pursuant to which the owner, operator or manager of the premises grants Chick-fil-A a lease or license to conduct a delivery kitchen restaurant business at the premise. If Chick-filA offers a license to the Operator to operate a Business as a Delivery Kitchen Unit, which Chick-fil-A is not obligated to do, Chick-fil-A and the Operator will enter into a written delivery kitchen agreement pursuant to which Chick-fil-A subleases or sublicenses, as applicable, its rights and privileges under the particular DK Agreement, and the Operator accepts the sublease or sublicense as applicable and agrees to faithfully perform Chick-fil-A's obligations under the DK Lease (the "Delivery Kitchen Agreement") that governs the Operator's occupancy and use of the particular Delivery Kitchen Unit premises. To the extent granted to Operator by Chick-fil-A, the Delivery Kitchen Agreement attaches the particular DK Lease for the particular Delivery Kitchen Unit as an exhibit. Chick-fil-A does not license an Operator to operate a Delivery Kitchen Unit as an Initial Business. In the case of an Additional Business under this Agreement that is a Delivery Kitchen Unit, the Delivery Kitchen Agreement and its attached DK Lease for the Additional Business that is the Delivery Kitchen Unit is attached as Exhibit "A" to the applicable Additional Business Amendment for Delivery Kitchen and incorporated in and made a part of this Agreement by this reference. To the extent granted to Operator by Chick-fil-A, the Delivery Kitchen Agreement and its attached DK Lease is incorporated in and made a part of this Agreement by this reference;
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, details regarding leasing arrangements can be found within Item 23, specifically concerning the "DK Lease" (Delivery Kitchen Agreement). This lease outlines the relationship between Chick-fil-A, a third-party owner/operator/manager (Licensor), and the Operator (franchisee) for Delivery Kitchen Units. The DK Lease grants Chick-fil-A the right to conduct a delivery kitchen restaurant business at a specific location. Chick-fil-A then subleases or sublicenses these rights to the Operator through a Delivery Kitchen Agreement.
The Operator is obligated to perform Chick-fil-A's obligations under the DK Lease, and the DK Lease is attached as an exhibit to the Delivery Kitchen Agreement. The document clarifies that Chick-fil-A is subleasing or sublicensing only those rights it acquired through the DK Lease. The Licensor, not Chick-fil-A, is responsible for performing the duties outlined in the DK Lease. If the Licensor fails to meet these obligations, the Operator must notify Chick-fil-A in writing, who will then notify the Licensor and demand performance.
Furthermore, the document specifies that the Operator is responsible for all legal fees and costs should they choose to engage an attorney to settle disputes arising from the DK Lease. Chick-fil-A is under no obligation to bring or defend any action brought by or against the Operator or Licensor. The Operator must also acknowledge any provisions in the DK Lease, such as those against competition among licensees or requirements for performance by other tenants within the premises. The Site is either owned or leased by Chick-fil-A, with a legal description of the Site set forth on Exhibit A attached to the Lease.
For sites subject to an underlying Ground Lease, the calculation of monthly rent is based on the total annual rent due under the Ground Lease, divided by twelve. The monthly Base Rent could increase if the rent or other charges under the Ground Lease increase. The document also defines various terms related to the lease, such as "Additional Charges and Expenses", "Base Rent", "Percentage Rent", "Permitted Use", and "Requirements of Law", providing a comprehensive overview of the leasing arrangements for Chick-fil-A Delivery Kitchen Units.