What is the highest 'Occupancy' expense reported for Chick Fil A in this table?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
5. Use/Occupancy Charge; Fees; and Payments.
- (a) Except as specifically provided for under the DK Lease and stated on the DK Summary attached as Exhibit A, Operator will pay to Chick-fil-A when due: (i) all required base operating service fees (the "BOSF") and additional operating service fees (the "AOSF") and other Operator costs and expenses on the Gross Receipts of the DK as provided for and calculated in accordance with Section 14 of the Franchise Agreement (the "BOSF and AOSF"); and (ii) all use and occupancy fees as set forth in the DK Summary and its attached Schedule A (the "Use/Occupancy Fee"); provided, however, if the DK Lease and DK Summary attached as Exhibit A so provide, the Operator agrees to directly make all payments to Licensor for Use/Occupancy of the DK Location(s) required under the DK Lease in the manner required (together with the Use/Occupancy Fee, collectively the "Use/Occupancy Charge").
The Use/Occupancy Charge may be described as a use/occupancy fee or charge, rent, license fee, service fee, marketing fee or otherwise.
Alternatively, subject to the terms and conditions of the DK Lease and the DK Summary, Licensor may collect some or all of the Gross Receipts of the Delivery Kitchen Unit from sales to customers and then distribute to the Operator (or Chick-fil-A on the Operator's behalf) a "commission," where the commission is the balance of the Gross Receipts after Licensor subtracts the Use/Occupancy Charge amount (and if applicable, any sales tax Licensor undertakes the responsibility to report and pay).
The Use/Occupancy Charge is summarized on the DK Summary attached as Exhibit A.
Except as specifically stated on the DK Summary attached as Exhibit A, as between Chick-fil-A and the Operator, Chick-fil-A will not have any monetary obligation to Licensor under this Agreement.
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
I am unable to provide a specific dollar amount for the highest occupancy expense for a Chick Fil A franchise, as the provided excerpts from the 2025 Franchise Disclosure Document do not contain a table or list of specific occupancy expenses. Instead, the document describes how occupancy fees are calculated and paid.
The Chick Fil A franchisee (referred to as the “Operator” in the document) will pay use and occupancy fees as outlined in the DK Summary and its attached Schedule A. These fees may be called a use/occupancy fee or charge, rent, license fee, service fee, or marketing fee. In some cases, the Licensor may collect gross receipts and then distribute a commission to the Operator after subtracting the Use/Occupancy Charge amount and any applicable sales tax.
To understand the potential range of occupancy expenses, a prospective Chick Fil A franchisee should carefully review the DK Summary and Schedule A attached to the Franchise Disclosure Document. They should also discuss typical occupancy costs with current Chick Fil A operators and consult with a financial advisor.