Can payments made by the Operator to Chick Fil A 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.
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 concerning receipts, payments made by the Operator to Chick-fil-A or BALC (presumably a Chick-fil-A related entity) or any court, will not reinstate, continue, or extend the term of the agreement after termination of the Food Truck Lease and/or the Agreement. Furthermore, such payments will not affect any notice previously given to the Operator, nor will they operate as a waiver of Chick-fil-A's right to obtain possession of the Food Truck through legal means. This applies to agreements concerning the Food Truck Lease and the general Agreement.
This stipulation is crucial for prospective Chick Fil A franchisees to understand. Even if an operator attempts to resolve outstanding financial issues after a termination notice or after the agreement is terminated, these payments do not guarantee a continuation or reinstatement of the franchise agreement. Chick-fil-A retains its right to pursue legal remedies to recover the Food Truck, regardless of any subsequent payments made.
This clause protects Chick Fil A's interests by ensuring that it maintains control over its franchise agreements and assets, even if an operator tries to rectify the situation financially after a termination event. Operators should be aware that consistent compliance with the agreement terms is essential to avoid termination, as financial remedies after termination will not necessarily restore the franchise agreement.