What is the scope of the license that Chick Fil A grants to the operator for the Food Truck?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
2. License; Term.
a. License. Chick-fil-A grants to the Operator, subject to the terms and conditions of this Agreement and the Franchise Agreement, the limited license to use and operate the Food Truck using the Trade Name, the Marks and the System, as may be modified by Chick-fil-A from time to time (including generally or for the Food Truck Program specifically), and the limited license and grant to conduct the Licensed Use (as defined below) as an extension and part of the Business (collectively the "License"), and the Operator accepts the grant of the License.
b. No Exclusive Territorial Rights. The License is expressly limited to the terms and conditions set forth in this Agreement and is further subject to the terms and conditions set forth in the Franchise Agreement. The License is non-exclusive, and no so-called "exclusive," "protected"
or other territorial rights in the Sales Locations (as defined below) or any market areas surrounding or otherwise contiguous with any Sales Location are granted, implied or to be inferred.
All rights and licenses not expressly granted to the Operator under this Agreement are reserved exclusively by and unto Chick-fil-A.
- c.
Term.
Unless earlier terminated as provided in this Agreement, including pursuant to Section 4.e or Section 14 or as stated on the Food Truck License Summary, or pursuant to the Franchise Agreement, the initial term of this Agreement (the "Initial Term") will commence as of the Effective Date of this Agreement and will end on the Thirty-First day of December of the year in which the Effective Date occurs.
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, the scope of the food truck license granted to the operator is limited. Chick-fil-A grants the operator a license to use and operate the Food Truck using the Trade Name, the Marks, and the System. This license allows the operator to conduct the Licensed Use as an extension and part of their existing Business. The operator accepts this grant of license.
However, the license is non-exclusive, meaning Chick Fil A does not grant any exclusive territorial rights in the Sales Locations or surrounding market areas. Chick Fil A retains all rights and licenses not expressly granted to the operator. The operator is responsible for negotiating and signing any agreements related to the use of the Food Truck for the Licensed Use and must ensure that all aspects of the Sales Locations and the use of the Food Truck comply with Chick-fil-A's Minimum Standards and any Guidelines for the Food Truck Program.
The initial term of the Food Truck License Agreement commences on the effective date of the agreement and ends on December 31st of the same year, unless terminated earlier as per the agreement's terms or the Franchise Agreement. The gross receipts from the Food Truck sales are included in the Gross Receipts of the Operator's Business and are treated as sales occurring outside of the Restaurant, following Chick-fil-A's standards and procedures. The Operator must also maintain separate books and records for the Food Truck's financial activities for at least five years, providing them to Chick-fil-A's Tax Department if required for a sales tax audit.