From what are the monthly fees and expenses deducted for a Chick Fil A franchise?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
These amounts are deducted from the Gross Receipts of your franchised Chick-fil-A Restaurant business as expenses.
Although calculated and due on a monthly basis, these fees and expenses are paid from Gross Receipts as expenses of your franchised Chick-fil-A Restaurant business to Chickfil-A on either a monthly or pro rata/month to date daily basis, except for the insurance premiums for workers' compensation, general liability, auto liability, and employment practices liability insurance coverages.
See Item 5 and Note 2 and Note 3 to the table in Item 6 and Note 5 below.
These amounts depend on where your franchised Chick-fil-A Restaurant business will be located, the size of the premises, traditional location, captive venue unit or delivery kitchen unit and other factors.
The amount could be higher, for example, if your franchised Chick-fil-A Restaurant business will be located in a flagship-type, urban facility in a large metropolitan market.
If you operate a captive venue unit in a non-traditional location or a delivery kitchen unit, you will pay, respectively, an occupancy charge or use/occupancy charge or fee instead of rent.
We currently estimate the occupancy charge will range between 4% to 30% of Gross Receipts.
The equipment rental for a captive venue unit or delivery kitchen unit could be less than the amount stated above for a captive venue unit or delivery kitchen unit, including if the owner, licensor or manager of the premises provides certain equipment, or more including if the venue is large.
Source: Item 7 — ESTIMATED INITIAL INVESTMENT1 (FDD pages 41–43)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, certain fees and expenses are deducted from the Gross Receipts of the franchised Chick-fil-A Restaurant business. These deductions are treated as expenses. While these fees and expenses are calculated and due monthly, they are paid from the Gross Receipts as expenses to Chick Fil A on either a monthly or pro rata/month-to-date daily basis. An exception to this is the insurance premiums for workers' compensation, general liability, auto liability, and employment practices liability insurance coverages.
The FDD also specifies several initial expenditures that are paid monthly, including the first month's rental of equipment, which ranges from $750 to $5,000; the first month's lease/sublease of premises, ranging from $2,725 to $96,285; and the first month's insurance expense, which ranges from $260 to $10,240. These amounts are not due until after the restaurant opens. The lease/sublease of premises is paid to Chick Fil A, while the insurance expense is paid to Chick Fil A and/or the insurance carrier.
The amount of these expenses can vary based on several factors, including the location of the restaurant, the size of the premises, and the type of unit (traditional location, captive venue unit, or delivery kitchen unit). For example, a flagship-type, urban facility in a large metropolitan market could incur higher costs. If operating a captive venue unit or a delivery kitchen unit, the franchisee will pay an occupancy charge or use/occupancy charge or fee instead of rent, which is estimated to range between 4% to 30% of Gross Receipts. The equipment rental for a captive venue unit or delivery kitchen unit could be less than the stated amount if the owner, licensor, or manager of the premises provides certain equipment.