factual

Does Chick Fil A have the right to terminate the Chick Fil A Food Truck Program at any time?

Chick_Fil_A Franchise · 2025 FDD

Answer from 2025 FDD Document

Notwithstanding anything to the contrary in this Agreement, the Operator further acknowledges and agrees that Chick-fil-A has the right, in Chick-fil-A's sole and exclusive business judgment, to terminate this Agreement and/or the Food Truck Program at any time for any reason or for no reason.

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

What This Means (2025 FDD)

According to Chick Fil A's 2025 Franchise Disclosure Document, Chick-fil-A has the right to terminate the Food Truck Program at any time. The FDD states that Chick-fil-A can terminate the Food Truck Program at any time, for any reason, or for no reason, based on its sole and exclusive business judgment. This condition is explicitly acknowledged and agreed to by the Operator.

This clause gives Chick Fil A broad latitude to discontinue the Food Truck Program, which introduces a significant risk factor for potential franchisees. Even if the franchisee is in full compliance with the agreement, Chick Fil A can still terminate the program. This could lead to a loss of investment and potential revenue streams for the franchisee.

Furthermore, if Chick Fil A elects to use the Food Truck for an alternate use, such as for disaster relief, the franchisee's obligations under the agreement will be suspended. The franchisee's sole remedy in such a case is the return of the Food Truck for the remainder of the term, without any right to an extension. Chick Fil A assumes no other liability if the Food Truck is not furnished or made available to the operator. This highlights the potential for business interruptions and the limited recourse available to the franchisee.

Prospective franchisees should carefully consider this termination clause and its implications for their investment and business operations. It would be prudent to seek clarification from Chick Fil A regarding the circumstances under which the Food Truck Program might be terminated and to assess the potential financial risks associated with such a termination.

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.