How is the Lease for the Chick Fil A Restaurant site related to the Chick Fil A Franchise Agreement?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
The Operator is a franchised Chick-fil-A ® Restaurant business operator holding a valid Franchise Agreement (together with its attached Lease(s) and in the case of any Captive Venue Unit(s), its attached Concession Sublicense Agreement(s) and their attached Concession Agreement(s), any other existing Additional Business Amendment(s), and all other exhibits, schedules and amendments, collectively the "Franchise Agreement"), and is entering into this Agreement the same date that the Additional Business Amendment for Delivery Kitchen to which this Agreement is attached (the "Additional Business Amendment") to operate the Delivery Kitchen Unit (as defined below) as an Additional Business (the Franchise Agreement, this attached Agreement and all other exhibits and amendments, collectively the "Franchise Agreement").
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, the lease for the restaurant site is directly tied to the Franchise Agreement. For a traditional Chick Fil A restaurant location, the lease agreement grants the operator the right to possess the site. This lease is included as an exhibit to the Franchise Agreement.
For Chick Fil A restaurants operating in non-traditional locations, such as a Captive Venue Unit, a Concession Sublicense Agreement along with its attached Concession Agreement substitutes the lease as Exhibit "A" to the Franchise Agreement. Similarly, for Delivery Kitchen Units, a Delivery Kitchen Agreement applies. The FDD specifies that the site can be owned or leased by Chick-fil-A, with Chick-fil-A owning the building if the site is under a ground lease.
The document also indicates that a default by the operator under the DK Lease (Delivery Kitchen Lease) will also be considered a default under both the agreement and the Franchise Agreement. This highlights the interconnectedness of the lease and franchise agreements, meaning any violation of the lease terms can have repercussions on the franchisee's standing with Chick Fil A.