For Chick Fil A, what is included in the definition of 'Gross Receipts' for a restaurant in a given month?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
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- 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 in a particular calendar month include the entire gross receipts from sales, excluding sales tax. This encompasses sales from the restaurant itself, any associated food truck, and any captive venue or delivery kitchen unit that operates as an additional Chick Fil A Restaurant business and is accounted for separately.
Chick Fil A uses the "Gross Receipts" figure to calculate various fees and expenses that the franchisee is required to pay. These fees are calculated and due on a monthly basis, and Chick Fil A prepares a fee calculation report for each franchised restaurant business to determine these amounts. The fees and expenses are then paid from the Gross Receipts as expenses of the franchised Chick Fil A Restaurant business to Chick Fil A, either monthly or on a pro rata/month-to-date daily basis.
Understanding what constitutes "Gross Receipts" is crucial for a prospective Chick Fil A franchisee because it directly impacts the calculation of rent, service fees, and other financial obligations to Chick Fil A. The franchisor also uses Gross Receipts to determine the rent for a franchised Chick-fil-A Restaurant premises. For example, under a Chick-fil-A internal rent policy effective beginning January 1, 2015, rent will not exceed 6% of the annual Gross Receipts of your franchised Chick-fil-A Restaurant business.