How are all monies collected after termination of the Chick Fil A agreement deemed to be applied?

According to Chick Fil A's 2025 Franchise Disclosure Document, any monies collected after the termination of the agreement will be considered as payments made in accordance with the terms of the agreement. Alternatively, these funds may be applied towards any outstanding balances that the Operator (franchisee) owes. This policy applies to various agreements, including the Franchise Agreement, Food Truck Lease, and Concession Agreement, ensuring consistency across different operational models.

For a prospective Chick Fil A franchisee, this means that any payments made, even after the agreement ends, will not reinstate the agreement, affect prior notices, or waive Chick-fil-A's rights to regain possession of the premises or equipment. Instead, these payments will first cover any existing debts or obligations under the original agreement. This is a standard practice in franchising, designed to protect the franchisor's financial interests and ensure all outstanding debts are settled.

This clause protects Chick Fil A by ensuring that outstanding financial obligations are met even after the franchise agreement is terminated. It also clarifies that any post-termination payments do not grant the franchisee any rights to continue operating or negate previous default notices. Franchisees should be aware of this provision, as it emphasizes the importance of fulfilling all financial responsibilities throughout the term of the agreement and even after its termination.