factual

Does Chick Fil A need a specific reason to terminate the Food Truck Program?

Chick_Fil_A Franchise · 2025 FDD

Answer from 2025 FDD Document

Notwithstanding anything to the contrary in this Agreement, the Operator further acknowledges and agrees that Chick-fil-A has the right, in Chick-fil-A's sole and exclusive business judgment, to terminate this Agreement and/or the Food Truck Program at any time for any reason or for no reason.

Source: Item 23 — Receipts (FDD pages 103–600)

What This Means (2025 FDD)

According to Chick Fil A's 2025 Franchise Disclosure Document, Chick Fil A has broad discretion to terminate the Food Truck Program agreement. Specifically, Chick Fil A can terminate the agreement at any time, and for any reason, or even for no reason at all. This is based on Chick-fil-A's sole and exclusive business judgment.

This clause gives Chick Fil A significant power over the Food Truck Program. A franchisee participating in the program faces the risk that Chick Fil A could end the agreement without cause. The franchisee bears all risks associated with the termination. This includes the potential loss of investment in the food truck operation and any expected profits.

In the event of termination, the franchisee is still responsible for outstanding balances, such as the Food Truck Usage Fee and the Food Truck Insurance Fee. This means that even if the program is terminated, the franchisee may still owe Chick Fil A money. Prospective franchisees should carefully consider this termination clause and its potential financial implications before entering into a Food Truck Program agreement with Chick Fil A.

Chick Fil A can also temporarily suspend or interrupt the Food Truck Program to use the Food Truck for an alternate use. This includes using the food truck for food or other product distribution in the event of a natural disaster, weather event, pandemic, epidemic, or other like disaster or event. If Chick Fil A elects to use the Food Truck for an alternate use, the franchisee's obligations under the agreement will be suspended, and the franchisee's sole and exclusive remedy will be the return of the Food Truck following the alternate use for the remainder of the term, without any right to an extension. Chick Fil A will have no other liability if the Food Truck is not furnished or otherwise made available to the operator.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.