What insurance coverages are premiums payable for under the Chick Fil A franchise agreement?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
as expenses of your franchised Chick-fil-A Restaurant business to Chick-fil-A on either a monthly or pro rata/month to date daily basis. The expenses you pay to the insurance administrator related to the insurance premiums for workers' compensation, general liability, auto liability, and employment practices liability coverages are also reflected on the fee calculation report. The Gross Receipts, fees and expenses of a food truck are accounted for and included in the fee calculation report of its associated Chick-fil-A Restaurant business. A separate fee calculation report is prepared for each Additional Business, including any captive venue or delivery kitchen unit.
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- These fees are paid from Gross Receipts as expenses of your franchised Chick-fil-A Restaurant business as described in Note 2 and Note 3 above, except as described in Note 3. These amounts are exclusive of any applicable sales, use and property taxes.
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- Under the Franchise Agreement, you appoint Chick-fil-A as your agent to establish and administer a program for collecting and accounting for the receipts of your franchised Chick-fil-A Restaurant business, and facilitating your payment of the rent, any equipment rental and any other payments or charges due pursuant to the Lease for the restaurant premises, as applicable certain of the insurance premiums elected by you or designated by Chick-fil-A, advertising contributions, any fees or charges pursuant to the Franchise Agreement, and other amounts owed to Chick-fil-A and/or suppliers by you. With regard to the workers' compensation, general liability insurance, auto liability, and employment practices liability insurance program, you will get billed by and will pay the insurance program administrator.
Source: Item 6 — OTHER FEES (FDD pages 27–40)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, the insurance coverages for which premiums are payable include workers' compensation, general liability, auto liability, and employment practices liability. These premiums are paid to the insurance company. Chick Fil A Operators may participate in a program administered by Chick Fil A for these insurance coverages.
The expenses related to these insurance premiums are reflected on a fee calculation report that Chick Fil A prepares monthly. This report details the fees and other expenses to be paid from the Gross Receipts of the franchised Chick Fil A Restaurant business. The fees and expenses are calculated according to a formula. These fees and expenses are paid from Gross Receipts as expenses of the franchised Chick Fil A Restaurant business to Chick Fil A on either a monthly or pro rata/month to date daily basis.
Chick Fil A is appointed as the agent to establish and administer a program for collecting and accounting for the receipts of the franchised Chick Fil A Restaurant business, and facilitating payment of certain insurance premiums elected or designated by Chick Fil A. The franchisee will be billed by and will pay the insurance program administrator for the insurance coverages. The franchisee remains responsible for assisting Chick Fil A in its administration of the program for collecting and accounting for the receipts of the franchised Chick Fil A Restaurant business.