factual

What is included in the definition of 'Gross Receipts' for a Chick Fil A restaurant?

Chick_Fil_A Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Under the Franchise Agreement, you are required to pay certain fees to Chick-fil-A out of your receipts calculated and due on a monthly basis according to a set formula. That formula is described below, but the definitions of certain terms used in the formula are provided first:
    • (a) "Gross Receipts" for a particular restaurant for each calendar month is your entire gross receipts from sales (excluding sales tax) with respect to the restaurant, including any associated food truck; any captive venue or delivery kitchen unit that is an additional Chick-fil-A Restaurant business and is accounted for as a separate restaurant;

Source: Item 6 — OTHER FEES (FDD pages 27–40)

What This Means (2025 FDD)

According to Chick Fil A's 2025 Franchise Disclosure Document, 'Gross Receipts' for a restaurant for each calendar month include the entire gross receipts from sales, excluding sales tax. This includes receipts from the restaurant itself, any associated food truck, and any captive venue or delivery kitchen unit that is an additional Chick-fil-A Restaurant business and is accounted for as a separate restaurant.

Chick Fil A uses the 'Gross Receipts' figure to calculate various fees and expenses that the franchisee is required to pay. These fees are typically calculated monthly and are paid from the Gross Receipts as expenses of the franchised restaurant business. Chick-fil-A prepares a fee calculation report each month to determine these fees and expenses.

Chick Fil A also uses Gross Receipts to determine rent. According to a Chick-fil-A internal rent policy effective beginning January 1, 2015, rent for a franchised Chick-fil-A Restaurant premises in a traditional location during the duration of the policy (excluding any equipment) will not exceed 6% of the annual Gross Receipts of your franchised Chick-fil-A Restaurant business. This policy does not extend to captive venue units or delivery kitchen units.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.
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