What is the lowest 'Occupancy' expense reported for Chick Fil A in this table?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
5. Use/Occupancy Charge; Fees; and Payments.
- (a) Except as specifically provided for under the DK Lease and stated on the DK Summary attached as Exhibit A, Operator will pay to Chick-fil-A when due: (i) all required base operating service fees (the "BOSF") and additional operating service fees (the "AOSF") and other Operator costs and expenses on the Gross Receipts of the DK as provided for and calculated in accordance with Section 14 of the Franchise Agreement (the "BOSF and AOSF"); and (ii) all use and occupancy fees as set forth in the DK Summary and its attached Schedule A (the "Use/Occupancy Fee"); provided, however, if the DK Lease and DK Summary attached as Exhibit A so provide, the Operator agrees to directly make all payments to Licensor for Use/Occupancy of the DK Location(s) required under the DK Lease in the manner required (together with the Use/Occupancy Fee, collectively the "Use/Occupancy Charge").
The Use/Occupancy Charge may be described as a use/occupancy fee or charge, rent, license fee, service fee, marketing fee or otherwise.
Alternatively, subject to the terms and conditions of the DK Lease and the DK Summary, Licensor may collect some or all of the Gross Receipts of the Delivery Kitchen Unit from sales to customers and then distribute to the Operator (or Chick-fil-A on the Operator's behalf) a "commission," where the commission is the balance of the Gross Receipts after Licensor subtracts the Use/Occupancy Charge amount (and if applicable, any sales tax Licensor undertakes the responsibility to report and pay).
The Use/Occupancy Charge is summarized on the DK Summary attached as Exhibit A.
Except as specifically stated on the DK Summary attached as Exhibit A, as between Chick-fil-A and the Operator, Chick-fil-A will not have any monetary obligation to Licensor under this 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 'Use/Occupancy Charge' may be referred to as a use/occupancy fee or charge, rent, license fee, service fee, or marketing fee. The operator is responsible for paying Chick Fil A all use and occupancy fees as outlined in the DK Summary and its attached Schedule A. However, if specified in the DK Lease and DK Summary, the operator may directly pay the licensor for the use/occupancy of the DK location.
Chick Fil A may collect gross receipts from the Delivery Kitchen Unit sales and then distribute a commission to the operator (or on the operator's behalf). The commission represents the balance of the gross receipts after Chick Fil A subtracts the Use/Occupancy Charge amount and any applicable sales tax the licensor is responsible for reporting and paying. The Use/Occupancy Charge is detailed in the DK Summary attached as Exhibit A.
For sites owned by Chick Fil A or its subsidiary, there is no base rent charge. The monthly rent is calculated as a percentage of gross receipts. If the calendar year-to-date gross receipts exceed the Year-To-Date Percentage Rent Breakpoint, the operator pays Chick Fil A Percentage Rent, which is 6% of all gross receipts exceeding the Year-To-Date Percentage Rent Breakpoint. The Annual Percentage Rent Breakpoint is prorated monthly. Because there is no Base Rent due under this Lease, the Annual Percentage Rent Breakpoint as of the Commencement Date generally will be set at $0.00.