What is the Chick Fil A operator's role under the Concession Sublicense Agreement?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 operator's role when running a Chick Fil A restaurant in a non-traditional venue. Chick-fil-A enters into Concession Agreements with the owners or managers of these captive venue locations. If Chick-fil-A offers an operator the chance to run a captive venue unit, both parties will enter into a Concession Sublicense Agreement.
Under this agreement, Chick Fil A sublicenses its rights and privileges from the original Concession Agreement to the operator. In turn, the operator accepts this sublicense and commits to fulfilling Chick Fil A's obligations as defined in the Concession Agreement for that specific captive venue. Essentially, the operator becomes a sub-licensee, or technically a sub-concessionaire, of the premises. The terms of these Concession Agreements can vary depending on the restaurant's location.
The term of the Concession Sublicense Agreement matches the term of the Franchise Agreement, unless the original Concession Agreement expires or terminates sooner. The operator must adhere to all terms of the Concession Agreement. Typically, the operator makes payments due to the premises owner or manager directly to Chick Fil A, who then remits the payment. However, Chick Fil A remains liable to the premises owner or manager under the original Concession Agreement.