Are Chick Fil A franchisees required to participate in the insurance program facilitated by The Coop?

t in The Coop nor is it insured or reinsured by The Coop. Only domestic U.S. Operators are shareholders of The Coop and are reinsured through The Coop. Although franchised domestic U.S. Operators are shareholders of the Coop and benefit from the reinsurance provided by the Coop, the Coop does not offer Operators insurance and Operators do not buy insurance from or through the Coop. Rather, Operators are directly insured by a licensed insurance company (not affiliated with Chick-fil-A, Inc.) that through a designated retention, reinsures a portion of the covered risks to The Coop. Additional lines of coverage may be added in the future and may be included in the mandatory insurance program. The Coop is central to the workers' compensation, general liability, auto liability, and employment practices liability insurance program in which all Operators must participate through the licensed independent insurance company that reinsures to the Coop (except that Operators in several states must obtain workers' compensation insurance through a program required in their state). Obtaining and then maintaining these coverages is required under the Franchise Agreement. These coverages are also required under state law. If an Operator does not sign an agreement with the Coop in connection with its share ownership of the Coop, the Operator will not be a shareholder of the Coop and will not be able to buy the affected insurance through the Operator Insurance Program as required under the Franchise Agreement. The states that currently require Operators to buy their workers' compensation insurance via a State program include North Dakota, Ohio, Washington and Wyoming.

The Coop is governed by a Board of Directors elected by Operators. A majority of the members of the Board of Directors will be Operators (five in total) and consist of a number of members who will serve for a three-year term with additional members nominated by a third party not affiliated with Chickfil-A.

Each Operator is a shareholder of The Coop and must sign a Shareholder Agreement in connection with its share ownership of The Coop. If an Operator's relationship with Chick-fil-A ceases, the Operator's share in The Coop will be redeemed by The Coop subject to certain terms and conditions.

The Board of Directors of The Coop will decide when and if dividends will be paid. Any payment of dividends is subject to regulatory approval and reinsurance requirements and may not be paid unless certain terms and conditions are met.

Officers of Chick-fil-A do not own an interest in any privately held suppliers, or a material interest in any publicly-held suppliers to our Operators and Licensees, except certain officers of Chick-fil-A own an interest in Chick-fil-A and indirectly in our affiliates CFA Supply and Bay Center. Chick-fil-A is a supplier, and in the geographic areas where CFA Supply and Bay Center operate or will operate, they will be a supplier, and with respect to certain products and services, Chick-fil-A and CFA Supply and Bay Center in the geographic areas where CFA Supply and Bay Center operate or will operate, are or will be the sole approved suppliers of certain products and services to our Operators and Licensees.

Item 9

FRANCHISEE'S OBLIGATIONS

This table lists your principal obligations under the franchise and other agreements. It will help you find more detailed information about your obligations in these agreements and in other items of this Disclosure Document.

Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 43–49)