Can the Chick Fil A Operator use the Site for purposes other than the Permitted Use?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
Units in place of any Lease for the DK.
AGREEMENT
In consideration of the above recitals, the mutual covenants and agreements contained in this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, each intending to be legally bound, agree as follows:
- Recitals; Definitions. The parties incorporate into this Agreement the recitals under the Background section above as if stated here in full. Capitalized terms used but not otherwise defined in this Agreement, including the DK Summary attached as Exhibit A, the Equipment Fee Addendum attached as Exhibit B and the DK Lease attached as Exhibit C as they may be amended from time to time, which are incorporated in and made a part of this Agreement by this reference, will have the meanings given to them in the Franchise Agreement and the Additional Business Amendment.
2. Sublicense; Licensed Use; Operator Duty to Perform Under DK Lease.
- (a) As of the effective date of this Agreement, subject to the terms and conditions of the Franchise Agreement, the Additional Business Amendment and this Agreement, Chick-fil-A grants a limited lease, sublease or sublicense, as applicable (collectively, "sublicense") to the Operator of all of its rights and privileges under the DK Lease to use and occupy the Site solely for the Business that is a Delivery Kitchen Unit during the Agreed Term of this Agreement (as defined in Section 4), selling only such products and fulfilling only such Orders authorized under this Agreement received by the Designated Business(es) and the DK, and for such other permitted activities specified in the DK Summary (the "Permitted Activities"), and otherwise operating in such a manner as permitted and authorized pursuant to the terms and conditions of the Franchise Agreement, as amended with regard to the DK and its operation by this Agreement, including the attached DK Lease, the DK Summary and any other exhibits to this Agreement (the "Licensed Use"). Operator will use the DK Location(s) solely for the Licensed Use and for no other purpose.
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to the 2025 Chick Fil A Franchise Disclosure Document, the Operator's use of the site is explicitly limited. For a Delivery Kitchen Unit, Chick Fil A grants a sublicense to use the site solely for the business of the Delivery Kitchen Unit during the agreed term. This includes selling only authorized products and fulfilling orders received by designated businesses and the DK, along with other permitted activities specified in the DK Summary, collectively known as the "Licensed Use". The Operator must use the DK Location(s) solely for the Licensed Use and for no other purpose.
For a Captive Venue Unit, Chick-fil-A grants a limited sublicense to the Operator to use and occupy the Site solely for the Business that is a Captive Venue Unit during the Agreed Term of this Agreement, selling only such products and operating in such a manner as permitted and authorized pursuant to the Franchise Agreement, defined as the "Permitted Use".
This means a Chick Fil A franchisee cannot operate any other type of business from the franchised location or use it for unauthorized purposes. All rights and licenses not expressly granted to the Operator under the Franchise Agreement, the Additional Business Amendment and this Agreement are reserved exclusively by and unto Chick-fil-A. This restriction ensures that the franchisee adheres strictly to the Chick Fil A brand standards and operational guidelines, maintaining consistency across all franchise locations.