How are monies collected after termination of the Chick Fil A agreement applied?

According to Chick Fil A's 2025 Franchise Disclosure Document, any monies collected after the termination of the agreement will be applied towards any outstanding balances owed by the operator. This means that if a Chick Fil A franchisee owes any money to Chick-fil-A or BALC (presumably a leasing entity), any payments made, even after the agreement is terminated, will go towards settling those debts.

This clause protects Chick Fil A by ensuring that outstanding debts are prioritized even after a franchise agreement ends. It also clarifies that making payments after termination does not reinstate the agreement, affect any prior notices, or waive Chick-fil-A's right to regain possession of the premises or equipment.

For a prospective Chick Fil A franchisee, this highlights the importance of fulfilling all financial obligations during the term of the agreement. Failure to do so could result in continued financial liability even after the franchise is no longer operating. Franchisees should maintain detailed records of all payments and understand the terms of the agreement regarding outstanding balances upon termination.