What happens if the Chick Fil A Franchise Agreement is terminated or not renewed?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
Chick-fil-A can terminate you upon 90 days prior written notice to you. Chick-fil-A can also terminate you immediately upon notice to you and payment of the greater of $1,000 or an amount determined by a formula, or within the first 90 days of the term without notice or any payment, upon termination of the lease or any concession agreement or DK Lease for the site or upon your death. We will not terminate you without good cause.
Upon termination of the Franchise Agreement by Chick-fil-A, at your option, Chick-fil-A must repurchase, at fair wholesale market value, all inventory bearing Chick-fil-A's trademarks sold by Chick-fil-A to you for resale under the Franchise Agreement.
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick-fil-A's 2025 Franchise Disclosure Document, several stipulations are in place regarding the termination or non-renewal of a Franchise Agreement. Chick-fil-A specifies conditions under which agreements, such as the Franchise Agreement, Lease, Concession Sublicense Agreement, and Delivery Kitchen Agreement, can be terminated.
Chick-fil-A can terminate a franchise with 90 days' prior written notice. However, Chick-fil-A can also terminate the agreement immediately upon notice and payment of either $1,000 or an amount determined by a formula. Chick-fil-A can also terminate within the first 90 days of the term without notice or any payment if the lease or any concession agreement or DK Lease for the site is terminated, or upon the franchisee's death. Chick-fil-A states that they will not terminate a franchise without good cause.
Upon termination of the Franchise Agreement by Chick-fil-A, the franchisee has the option to require Chick-fil-A to repurchase all inventory bearing Chick-fil-A's trademarks that were sold to the franchisee for resale. The repurchase will be at fair wholesale market value. These stipulations provide some financial recourse for the franchisee in the event of termination by Chick-fil-A.