Are sales taxes included in the Gross Receipts calculation for a Chick Fil A restaurant?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
oyment practices liability insurance coverages. All fees are non-refundable and are imposed uniformly except as expressly provided below.
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- Under the Franchise Agreement, you are required to pay certain fees to Chick-fil-A out of your receipts calculated and due on a monthly basis according to a set formula. That formula is described below, but the definitions of certain terms used in the formula are provided first:
- (a) "Gross Receipts" for a particular restaurant for each calendar month is your entire gross receipts from sales (excluding sales tax) with respect to the restaurant, including any associated food truck; any captive venue or delivery kitchen unit that is an additional Chick-fil-A Restaurant business and is accounted for as a separate restaurant;
Source: Item 6 — OTHER FEES (FDD pages 27–40)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, Gross Receipts are calculated excluding sales tax. Specifically, Gross Receipts for a Chick Fil A restaurant for each calendar month is the entire gross receipts from sales (excluding sales tax) with respect to the restaurant, including any associated food truck; any captive venue or delivery kitchen unit that is an additional Chick Fil A Restaurant business and is accounted for as a separate restaurant.
This means that when a Chick Fil A franchisee calculates their monthly Gross Receipts to determine fees and other payments to Chick Fil A, they should not include any sales taxes collected from customers. This is a standard practice in franchising, as the franchisor is interested in the revenue generated from sales of goods and services, not the taxes collected on behalf of the government.
For a prospective Chick Fil A franchisee, this definition of Gross Receipts is important for accurately calculating monthly fees and rent, which are often based on a percentage of Gross Receipts. Failure to exclude sales tax could result in overpayment of these fees. Additionally, the FDD specifies that these amounts are exclusive of any applicable sales, use and property taxes.