What rights does Chick Fil A license and grant to the Operator to own and operate a franchise?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.2 Chick-fil-A hereby licenses and grants to the Operator, and the Operator hereby accepts, the right and limited license to use the Marks and Methods, but only in connection with each Business during its Agreed Term and only in accordance with the terms and conditions of this Agreement.
- 4.3 The Operator acknowledges that the rights licensed and granted to the Operator in this Agreement are limited and non-exclusive and accordingly that Chick-fil-A and its affiliates may: (i) at any time during the Agreed Term of any Business grant similar licenses to any other person or entity to operate a Restaurant or use the Marks at any place other than the Sites; and (ii) grant a similar license to any other person or entity to operate a Restaurant at any Site effective upon or following the termination of the Operator's franchise to operate the Business at the Site. This Agreement establishes and defines the Operator's franchise to operate each Business at the particular Site for such Business and no so-called "exclusive," "protected" or other territorial rights in the contiguous market area of such Business is hereby granted or inferred. All rights and licenses not expressly granted to the Operator under this Agreement are reserved exclusively by and unto Chick-fil-A.
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to the 2025 Chick Fil A Franchise Disclosure Document, Chick-fil-A grants the Operator a limited and non-exclusive right and license to use the Marks and Methods associated with the Chick-fil-A system. This license is specifically for each Business during its Agreed Term and must be used in accordance with the terms and conditions outlined in the franchise agreement. The Operator's rights are limited to the specific site of their Business.
Chick-fil-A retains the right to grant similar licenses to others, allowing them to operate a Restaurant or use the Marks at any location outside the Operator's designated site. Chick-fil-A can also grant another person or entity a license to operate a Restaurant at the Operator's Site, effective upon or following the termination of the Operator's franchise. This underscores that the rights granted are non-exclusive and tied to the specific location and term of the agreement.
The agreement explicitly states that no exclusive, protected, or other territorial rights in the contiguous market area of the Business are granted or inferred. All rights and licenses not expressly granted to the Operator are reserved exclusively by Chick-fil-A. This ensures Chick-fil-A maintains control over its brand and the ability to expand its network as it sees fit, without granting franchisees territorial monopolies.