For Chick Fil A, when is the Operator required to pay the Usage Fee?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
In consideration of the License granted in this Agreement and to compensate Chick-fil-A for the use of the Food Truck under the sublease of the Food Truck Lease granted in Section 4 of this Agreement, the Operator will pay to Chick-fil-A when due the usage fee(s) as set forth in the Food Truck License Summary (the "Usage Fee"), which wil
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, the Operator is required to pay the Usage Fee when due. Specifically, this applies to the usage fee(s) as outlined in the Food Truck License Summary. This fee compensates Chick-fil-A for the use of the Food Truck under the sublease of the Food Truck Lease.
This means that if you are operating a Chick Fil A food truck, you will have a pre-determined schedule for paying the Usage Fee. The exact amount and payment schedule will be detailed in the Food Truck License Summary, which is a crucial document to review carefully.
It is important for prospective franchisees to understand all the terms and conditions outlined in the Food Truck License Summary to ensure timely payments and avoid any potential penalties or breaches of contract. The term 'when due' is not further defined in the excerpt, so it is important to clarify the exact payment schedule with Chick Fil A during the due diligence process.