When does the initial term of the Chick Fil A Delivery Kitchen Unit Agreement commence?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) Unless earlier terminated as provided in this Agreement or in the Franchise Agreement, the initial term of this Agreement with respect to the Delivery Kitchen Unit (the "Initial Term") will commence as of the Effective Date of this Agreement and will end on the Thirty-first Day of December of the year in which the Effective Date occurs. The Initial Term, together with any and all extensions of the Initial Term and subject to the rights for earlier termination or expiration pursuant to this Agreement or the Franchise Agreement, is sometimes referred to in this Agreement as the "Agreed Term" or the "Term." Unless this Agreement, the Franchise Agreement or the DK Lease is terminated earlier, the Agreed Term of this Agreement will be automatically extended for successive additional periods of one (1) year, unless written notice of intent not to renew either the Franchise Agreement or this Agreement is given by either party to the other at least thirty (30) days prior to the end of the Agreed Term; provided however, this Agreement may not be renewed if the Operator does not have the right to renew the Franchise Agreement or does not have the right to renew the Franchise Agreement with respect to the Delivery Kitchen Unit or the Franchise Agreement is otherwise terminated or not renewed, as provided in Section 2.3 of the Franchise Agreement. In addition to Chick-fil-A's right to amend or modify the DK Lease pursuant to this Agreement, Chick-fil-A will have the right to change the terms and conditions of this Agreement upon a renewal pursuant to Section 2.4 of the Franchise Agreement by giving the Operator a written notice of the changed terms and conditions at least forty-five (45) days prior to the end of the then-current Term, in which case the Operator will have fifteen (15) days from the date of the notice to decide and to notify Chickfil-A in writing of the Operator's decision to either renew or not renew upon the changed terms and conditions offered. The Operator's failure to provide timely notice to Chick-fil-A of a decision to either renew or not renew upon the changed terms and conditions offered will be deemed to be an election by the Operator to terminate this Agreement at the end of such Agreed Term.
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, the initial term of the Delivery Kitchen Unit Agreement begins on the Effective Date of the agreement. Unless terminated earlier, the initial term will end on December 31 of the year in which the Effective Date occurs.
This means that if a franchisee signs the Delivery Kitchen Unit Agreement on any day of a given year, the initial term will run from that date until the end of that year. This initial term, along with any extensions, is referred to as the "Agreed Term" or the "Term".
The agreement automatically extends for successive one-year periods unless either Chick Fil A or the franchisee provides written notice of intent not to renew at least 30 days before the end of the current term. However, the agreement cannot be renewed if the franchisee does not have the right to renew the Franchise Agreement, the Franchise Agreement is terminated, or the franchisee does not have the right to renew the Franchise Agreement with respect to the Delivery Kitchen Unit.