Does any payment made by the Operator reinstate the Chick Fil A agreement after termination?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination of the Food Truck Lease and/or this Agreement, any payment made by the Operator to Chickfil-A or BALC or any court will not: (i) reinstate, continue or extend the term of this Agreement; (ii) affect any notice previously given to the Operator; or (iii) operate as a waiver of the right of Chick-fil-A to obtain possession of the Food Truck by proper suit, action, proceeding or remedy.
All monies collected will be deemed to be payments made in accordance with the terms of this Agreement or applied toward any outstanding balances owed by the Operator.
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, specifically Item 23 regarding receipts, any payment made by the Operator to Chick-fil-A or BALC (presumably a leasing company) or any court after termination of the Food Truck Lease and/or the Agreement will not reinstate, continue, or extend the term of the Agreement. This means that even if the Operator attempts to resolve outstanding financial obligations after the franchise agreement has been terminated, the original agreement will not be revived or prolonged. The payment will also not affect any notice previously given to the Operator, nor will it operate as a waiver of Chick-fil-A's right to obtain possession of the Food Truck through legal means.
This provision protects Chick Fil A's interests by ensuring that termination decisions are final and not easily reversed by subsequent payments from the Operator. It provides clarity that any money collected after termination will be applied towards outstanding balances owed by the Operator but does not imply reinstatement of the franchise agreement. This is a standard practice in franchising, as franchisors typically want to maintain control over who operates their franchises and ensure consistent brand standards.
For a prospective Chick Fil A franchisee, this clause highlights the importance of adhering to the terms of the franchise agreement and avoiding situations that could lead to termination. It emphasizes that once the agreement is terminated, making payments will only cover outstanding debts and will not restore the franchise rights. Therefore, maintaining a good standing with Chick Fil A and fulfilling all contractual obligations is crucial to avoid termination and the potential loss of the franchise.