What obligations survive the termination of the Chick Fil A agreement?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
ce or legal proceedings whatsoever. The Operator agrees to vacate the Site and
the Captive Venue Unit immediately upon the termination or expiration of this Agreement or the Concession Agreement and the accompanying sublicense and to permit the peaceable possession of the Site and the Captive Venue Unit by Chick-fil-A or, at Chick-fil-A's election, a Chick-fil-A affiliate or another Chick-fil-A franchisee. Chick-fil-A may operate the Concession Location(s) directly or through an affiliate or may offer the right to operate the Concession Location(s) to another franchisee.
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- Survival. Upon the termination, expiration, or suspension of this Agreement, all obligations under this Agreement and under the Franchise Agreement that expressly or by their nature are intended to survive the termination or expiration of this Agreement, including, but not limited to, any limitations of liability, and the Operator's and if applicable, the Operator-Owner's reporting, payment and indemnification obligations to Chick-fil-A (as well as any like obligations under the Franchise Agreement and if applicable the Assignment, which were incorporated by reference into this Agreement and the Additional Business Amendment (if a
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, several obligations survive the termination, expiration, or suspension of the agreement. These include any obligations under the Franchise Agreement that are explicitly stated or naturally intended to continue after termination. Specifically mentioned are limitations of liability, as well as the operator's reporting, payment, and indemnification obligations to Chick Fil A. These obligations extend to any similar duties outlined in the Franchise Agreement and, if applicable, the Assignment and Additional Business Amendment, which are incorporated by reference into the agreement.
For a Chick Fil A franchisee, this means that certain responsibilities do not simply disappear when the franchise agreement ends. Even after the agreement is terminated, the franchisee may still be liable for financial obligations, such as reporting, payment, and indemnification. This could include ongoing payments, liabilities for past actions, or legal responsibilities. The survival clause ensures that Chick Fil A retains certain protections and rights even after the franchisee is no longer operating under the brand.
It is important for prospective Chick Fil A franchisees to carefully review the sections of the Franchise Agreement that are referenced as surviving termination. Understanding the nature and extent of these continuing obligations is crucial for assessing the potential long-term liabilities associated with the franchise. Franchisees should seek legal counsel to fully understand these clauses and their implications.
Furthermore, the agreement specifies that upon termination, the operator remains liable for any outstanding balances related to the Food Truck Usage Fee and the Food Truck Insurance Fee, along with any other payments owed to Chick Fil A or BALC (presumably the Food Truck Lessor) as stipulated in the Food Truck Lease or the agreement itself. This financial responsibility continues regardless of the termination of the agreement, ensuring that Chick Fil A and associated entities can recover any pending dues.