factual

What parties are involved in the Delivery Kitchen Agreement for a Chick Fil A restaurant?

Chick_Fil_A Franchise · 2025 FDD

Answer from 2025 FDD Document

(e) "DK Lease" means the written delivery kitchen agreement between Chick-fil-A and a third party owner, operator or manager of the premises where a "Delivery Kitchen Unit" (as defined below) is located pursuant to which the owner, operator or manager of the premises grants Chick-fil-A a lease or license to conduct a delivery kitchen restaurant business at the premise. If Chick-filA offers a license to the Operator to operate a Business as a Delivery Kitchen Unit, which Chick-fil-A is not obligated to do, Chick-fil-A and the Operator will enter into a written delivery kitchen agreement pursuant to which Chick-fil-A subleases or sublicenses, as applicable, its rights and privileges under the particular DK Agreement, and the Operator accepts the sublease or sublicense as applicable and agrees to faithfully perform Chick-fil-A's obligations under the DK Lease (the "Delivery Kitchen Agreement") that governs the Operator's occupancy and use of the particular Delivery Kitchen Unit premises. To the extent granted to Operator by Chick-fil-A, the Delivery Kitchen Agreement attaches the particular DK Lease for the particular Delivery Kitchen Unit as an exhibit. Chick-fil-A does not license an Operator to operate a Delivery Kitchen Unit as an Initial Business. In the case of an Additional Business under this Agreement that is a Delivery Kitchen Unit, the Delivery Kitchen Agreement and its attached DK Lease for the Additional Business that is the Delivery Kitchen Unit is attached as Exhibit "A" to the applicable Additional Business Amendment for Delivery Kitchen and incorporated in and made a part of this Agreement by this reference. To the extent granted to Operator by Chick-fil-A, the Delivery Kitchen Agreement and its attached DK Lease is incorporated in and made a part of this Agreement by this reference;

Source: Item 23 — Receipts (FDD pages 103–600)

What This Means (2025 FDD)

According to Chick Fil A's 2025 Franchise Disclosure Document, the Delivery Kitchen Agreement involves multiple parties. Initially, Chick-fil-A enters into a "DK Lease" with a third-party owner, operator, or manager of the premises where the Delivery Kitchen Unit is located. This agreement grants Chick-fil-A the right to operate a delivery kitchen at the location.

Subsequently, if Chick-fil-A chooses to offer a license to an Operator to run the Delivery Kitchen Unit (which Chick-fil-A is not obligated to do), Chick-fil-A and the Operator will then enter into a Delivery Kitchen Agreement. Under this agreement, Chick-fil-A subleases or sublicenses its rights from the original DK Lease to the Operator. The Operator, in turn, agrees to adhere to Chick-fil-A's obligations under the DK Lease, governing their use of the Delivery Kitchen Unit premises.

In summary, the key parties involved are Chick-fil-A, the third-party owner/operator/manager (Licensor) of the premises, and the Chick-fil-A Operator. The DK Lease exists between Chick-fil-A and the Licensor, while the Delivery Kitchen Agreement exists between Chick-fil-A and the Operator, with the Operator's rights being derived from Chick-fil-A's original agreement with the Licensor.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.