Is a Chick Fil A Operator currently required to contribute to the advertising fund?

Until June 30, 1989, Operators were required to pay 3¼% of Gross Receipts to the advertising fund, but effective July 1, 1989, the amount of this payment was reduced to 0% as a matter of policy.

We do not presently require Operators to contribute to the advertising fund as a matter of internal policy, but we reserve the right to return and may return to the 3¼% or another program at any time.

We expect you to implement local advertising; however, you must use only those materials approved or supplied by Chick-fil-A.

Operators in the same market or geographical region, as determined by Chick-fil-A, sometimes cooperate with each other to implement local or regional advertising.

However, Chick-fil-A does not fund local or regional advertising.

Operator cooperation could also include leasing marketing assets, including branded activation units, spectacular cow creatives, and branded props from Chick-fil-A for shared use of the related asset.

If a majority of the Operators in your area vote (or have previously voted) to implement a local or regional advertising fund or initiative, you will be required to participate and contribute to the fund or initiative.

We administer the local or regional advertising funds, which are not audited.

We will make the unaudited financial statements of your local or regional advertising fund available for your review upon your request.

You and the other Operators in your area will establish the amount of the contribution by majority vote.

As part of local, regional or national marketing efforts, Operators are periodically required to participate in temporary or permanent promotional campaigns, honor coupons and participate in giveaway promotions for food or drink items at their respective Chick-fil-A Restaurants, for which the Operators may not be reimbursed.

You must participate in these promotional programs and campaigns and, at Chick-fil-A's election, your participation may be at your own cost, including the costs to purchase, lease and install all promotional campaign materials and devices, including counter cards, posters, banners, signs, photographs, give-away items and gift cards.

Chick-fil-A owned restaurants contribute to any national and any local or regional advertising fund on the same basis as Operators.

During fiscal year 2024 no funds were required to be contributed to a national advertising fund.

Chick-fil-A is not required to spend any certain amount on advertising in your area.

If Chick-fil-A requires you to contribute to the advertising fund or you contribute advertising fees to a local or regional fund and they are not all spent in the fiscal year in which they are charged, the remaining amounts are either returned or rolled over (depending upon the particular program) to the next year's budget.

You will not receive a periodic accounting of how advertising fees are spent.

Chick-fil-A's advertising accounts, if any, are not trust funds, and Chick-fil-A is not your fiduciary with respect to any advertising funds.

Chick-fil-A is not required to ensure that any Operator benefits directly or pro rata from the expenditure of any advertising funds. (See Section 17 of Franchise Agreement).

Chick-fil-A may offer to provide optional advertising support and services to Operators at the local, store, market or regional advertising level on a formal basis for a fee through our in-house advertising agency as an alternative choice for Operators to third-party advertising agencies. Operators have traditionally engaged third-party advertising agencies to provide these same types of additional advertising support and services. We also have assisted Operators in the past with other advertising support and services, and to the extent we were able, on an informal basis and without charging any additional fees, including providing certain advice and creative resources to support local, store, market or regional advertising initiatives by Operators. For these other types of advertising support and services, we intend to continue providing a similar level of advertising services and support, to the extent we are able.

Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 55–59)