If the Chick Fil A lease is terminated, what is the operator required to do with the equipment?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
It is also expressly acknowledged and agreed by Chick-fil-A and the Operator that the termination, expiration, or revocation of the Franchise Agreement by either party for any reason, either in whole or in part, shall also terminate this Lease effective immediately, without further notice being required.
- 10.3 Duties Upon Termination or Expiration.
Upon the termination or expiration of one or both of this Lease or the Franchise Agreement for any reason, the Operator shall (i)
immediately return to Chick-fil-A all of the Equipment; (ii) immediately pay Chick-fil-A the full amount of all sums due and owing under this Lease; (iii) remove all of Operator's personal property, if any, from the Site and shall repair any resulting damage to the Site; and (iv) quit and surrender the Site to Chick-fil-A broom clean, in good order and condition, ordinary wear and tear and damage by fire or other casualty excepted.
10.4 Duty to Vacate.
The Operator shall vacate the Site of such terminated Business and return to Chick-fil-A all of the Equipment immediately upon the termination or expiration of one or both of this Lease or the Franchise Agreement, and permit the peaceable possession of the Site by Chick-fil-A or, at Chick-fil-A's election, a new authorized operator.
Should the Operator fail to do so, Chick-fil-A may re-enter, expel, remove and put out the Operator and all persons occupying the Site under the Operator, using such force as may be reasonably necessary in so doing, and repossess the Site.
Such re-entry and repossession shall not be deemed a forfeiture of any past due Rent or Additional Charges and Expenses to be paid hereunder and shall not terminate any covenants to be performed by the Operator during the Term of this Lease.
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, if the lease or Franchise Agreement is terminated or expires, the operator must immediately return all equipment to Chick Fil A. The operator is also responsible for paying all outstanding sums due under the lease. Additionally, the operator must remove all personal property from the site, repair any damage caused by the removal, and surrender the site to Chick Fil A in a clean and good condition, considering normal wear and tear and damage from fire or other incidents.
Furthermore, the operator is required to vacate the premises of the terminated business and return all equipment to Chick Fil A immediately upon termination or expiration of the lease or Franchise Agreement. This allows Chick Fil A, or a new authorized operator, to take peaceful possession of the site. If the operator fails to vacate, Chick Fil A has the right to re-enter the site, remove the operator and any other occupants, and repossess the site, using reasonable force if necessary.
This re-entry and repossession by Chick Fil A does not constitute a waiver of any unpaid rent or additional charges and expenses owed by the operator. It also does not terminate any obligations the operator has to fulfill during the term of the lease. This ensures that Chick Fil A can regain control of the premises and equipment while still holding the operator accountable for any outstanding financial or contractual obligations.