What must a Chick Fil A operator comply with under the Concession Sublicense Agreement?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
Lease attached as an exhibit to and a part of your Franchise Agreement governs your occupancy of the restaurant premises. See Items 5 and 6 for more information.
Chick-fil-A enters into Concession Agreements that govern the occupancy of non-traditional captive venue unit premises with the owners or managers of the captive venue unit premises. If Chick-fil-A offers you the opportunity to operate a captive venue unit whether as your initial business or as an additional franchised Chick-fil-A Restaurant, you and Chick-fil-A will enter into the Concession Sublicense Agreement in the form attached as an exhibit to the Additional Business Amendment for Captive Venue to your Franchise Agreement. The Concession Sublicense Agreement attaches the Concession Agreement (and, if applicable, any underlying prime lease or ground lease). In the case of any captive venue unit, the Concession Sublicense Agreement and its attached Concession Agreement incorporated by reference into your Franchise Agreement substitutes for the Lease(s) applicable to a traditional restaurant premises as to the captive venue unit. Under the Concession Sublicense Agreement, Chick-fil-A sublicenses its rights and privileges under the Concession Agreement to you, and you accept the sublicense and agree to faithfully perform Chick-fil-A's obligations under the Concession Agreement for the particular captive venue premises. You will be a sub-licensee (technically a sub-concessionaire) of the premises. The business terms for these Concession Agreements vary depending on the location of the Chick-fil-A Restaurant. If you sublicense the rights to occupy the captive v`enue restaurant premises from us, the term of the Concession Sublicense Agreement for the captive venue restaurant premises is the same as the term of your Franchise Agreement or the earlier expiration or termination of the Concession Agreement, whichever is shorter. You will be required to comply with the terms of the Concession Agreement. In most instances you will make any payments due to the premises owner or manager under the Concession Agreement directly to Chick-fil-A and Chick-fil-A will remit payment to the premises owner or manager. Chick-fil-A will remain liable to the premises owner or manager under the Concession Agreement. -See Items 5 and 6 for more information.
Chick-fil-A enters into DK Leases that govern the occupancy and use of non-traditional delivery kitchen unit premises with the owners, licensors or managers of the delivery kitchen premises. Chick-fil-A only offers the opportunity to operate a delivery kitchen unit as an additional franchised Chick-fil-A Restaurant. If Chick-fil-A offers you the opportunity to operate a delivery kitchen as an additional franchised Chick-fil-A Restaurant, you and Chick-fil-A will enter into the Delivery Kitchen Agreement in the form attached as an exhibit to the Additional Business Amendment for Delivery Kitchen to your Franchise Agreement. The Delivery Kitchen Agreement attaches the DK Lease (and, if applicable, any underlying prime lease or ground lease). In the case of any delivery kitchen unit, the Delivery Kitchen Agreement and its attached DK Lease incorporated by reference into your Franchise Agreement substitutes for the Lease(s) applicable to a traditional restaurant premises as to the delivery kitchen. Under the Delivery Kitchen Agreement, Chick-fil-A sublicenses or subleases as applicable its rights and privileges under the DK Lease to you, and you accept the sublicense or sublease as applicable and agree to faithfully perform Chick-fil-A's obligations under the DK Lease for the particular delivery kitchen premises. You will be a sub-licensee or sublessee as applicable of the premises.
Source: Item 10 — Financing (FDD pages 51–55)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, the Concession Sublicense Agreement outlines the terms for operating a Chick Fil A restaurant in a non-traditional venue. If Chick-fil-A offers an operator the chance to run a captive venue unit, both parties will enter into this agreement, which essentially sublicenses Chick-fil-A's rights under its own Concession Agreement with the venue owner to the operator. The operator must then faithfully perform Chick-fil-A's obligations under the original Concession Agreement for that specific location. This means the operator is technically a sub-concessionaire of the premises. The terms of these agreements can vary based on the restaurant's location.
The term of the Concession Sublicense Agreement is tied to the Franchise Agreement's term or the Concession Agreement's term, whichever ends sooner. The operator is required to comply with all terms of the Concession Agreement. In most cases, payments due to the venue owner or manager are made through Chick-fil-A, which then remits the payment. However, Chick-fil-A remains liable to the premises owner or manager under the Concession Agreement.
Furthermore, the franchisee waives certain rights under the Concession Sublicense Agreement, including the right to trial by jury, the right to pursue class claims, and the right to punitive and exemplary damages. The franchisee also waives the right to any notice of intention to re-enter or institute legal proceedings, and any rights to redeem the agreement or the site after Chick-fil-A re-enters the property or after any warrant to dispossess or judgement. Upon default of the Concession Sublicense Agreement, the franchisee's liability could include termination of the sublicense and the Franchise Agreement, potentially leading to loss of the franchise, as well as payment of unpaid amounts, interest, recovery costs, collection costs, and attorney's fees. The franchisee may also be responsible for reimbursing Chick-fil-A's costs to perform obligations that the franchisee failed to perform, along with interest.