What right of Chick Fil A is not waived by payments made by the Operator after termination?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
The Operator agrees that upon default Concessionor may demand, receive and collect any monies due or falling due after the default without in any manner affecting the status of the default or any notice of suit, action, order or judgment related to the default.
Upon termination of the Concession Agreement and/or this Agreement, any payment made by the Operator to Chick-fil-A or Concessionaire 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 access to and possession of the Concession Location(s) 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, payments made by the Operator to Chick-fil-A or Concessionaire or any court after termination of the Concession Agreement and/or the Agreement will not operate as a waiver of Chick-fil-A's right to obtain access to and possession of the Concession Location(s) by proper suit, action, proceeding, or remedy. This means that even if Chick-fil-A accepts payments from the Operator after the termination of the agreement, Chick-fil-A still retains the right to pursue legal means to regain possession of the premises.
This provision protects Chick-fil-A's ability to enforce the termination and regain control of the location, regardless of any payments made by the Operator. It prevents the Operator from arguing that Chick-fil-A's acceptance of payments constitutes a waiver of its termination rights or a reinstatement of the agreement. The payments will simply be applied toward any outstanding balances owed by the Operator, without affecting Chick-fil-A's right to take legal action to recover the location.
For a prospective Chick-fil-A franchisee, this clause highlights the importance of adhering to the terms of the agreement and avoiding default. If the agreement is terminated, any subsequent payments will not prevent Chick-fil-A from pursuing legal remedies to regain possession of the location. This underscores the serious consequences of termination and the need for franchisees to fulfill their obligations under the franchise agreement.