What is the Chick Fil A Food Truck Usage Fee in lieu of?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
In consideration of the License granted in this Agreement and to compensate Chick-fil-A for the use of the Food Truck under the sublease of the Food Truck Lease granted in Section 4 of this Agreement, the Operator will pay to Chick-fil-A when due the usage fee(s) as set forth in the Food Truck License Summary (the "Usage Fee"), which will be in lieu of the lease rental payment described in the Food Truck Lease payable by Chickfil-A to BALC.
Chick-fil-A shall have the right from time to time to re-determine the Food Truck Usage Fee in its sole and exclusive business judgment based on the then current fair market rental value for the Food Truck due to additions, subtractions and modifications to the Food Truck, additional or different charges or other changes under the Food Truck Lease, market factors, inflation, passage of time or otherwise, and to update the Food Truck Usage Fee to an amount based on the then determined, current fair market rental, which will be set forth in a revised Food Truck License Summary Form and substituted and attached to this Agreement as Exhibit A and made a part of this Agreement.
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, the Food Truck Usage Fee is paid by the Operator in consideration of the license granted in the agreement and to compensate Chick-fil-A for the use of the Food Truck under the sublease of the Food Truck Lease.
Specifically, the Food Truck Usage Fee is in lieu of the lease rental payment described in the Food Truck Lease payable by Chick-fil-A to BALC. This means that instead of the franchisee directly paying the lease rental for the food truck to BALC (presumably a leasing company), they pay a usage fee to Chick-fil-A, which then covers the lease rental payment.
Chick-fil-A retains the right to re-determine the Food Truck Usage Fee periodically based on factors such as the fair market rental value, modifications to the Food Truck, changes in charges under the Food Truck Lease, market factors, inflation, and the passage of time. Any adjustments to the fee will be documented in a revised Food Truck License Summary Form attached to the agreement.