What replaces the traditional lease for a Chick Fil A captive venue unit?
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, a Concession Sublicense Agreement replaces the traditional lease for captive venue units. Chick-fil-A enters into Concession Agreements with the owners or managers of the captive venue premises. If Chick-fil-A offers a franchisee the opportunity to operate a captive venue unit, both parties will enter into a Concession Sublicense Agreement. This agreement includes the Concession Agreement and any underlying prime lease or ground lease.
The Concession Sublicense Agreement, along with its attached Concession Agreement, substitutes for the standard lease applicable to traditional Chick Fil A restaurant locations. Under this agreement, Chick-fil-A sublicenses its rights to the franchisee, who in turn agrees to fulfill Chick-fil-A's obligations under the Concession Agreement for the specific captive venue. The franchisee essentially becomes a sub-licensee (or sub-concessionaire) of the premises.
The terms of these Concession Agreements can vary depending on the location of the Chick Fil A restaurant. The term of the Concession Sublicense Agreement matches the term of the Franchise Agreement or the expiration/termination of the Concession Agreement, whichever comes first. Franchisees are required to comply with all terms of the Concession Agreement. In most cases, franchisees will make payments directly to Chick-fil-A, who then remits payment to the premises owner or manager, while Chick-fil-A remains liable to the premises owner or manager under the Concession Agreement.