To whom is the seasoned coater shipped after Chick Fil A purchases it?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
Chick-fil-A also has an interest in the proprietary seasoned coater used in the preparation of most Chick-fil-A brand chicken products. The seasoned coater is purchased by Chick-fil-A from the producer and is shipped directly to Chick-fil-A's authorized distributor(s). Payments to Chick-fil-A for the proprietary seasoned coater are received from the distributor(s) of the seasoned coater when the seasoned coater is purchased by the distributor(s) from Chick-fil-A. The distributor(s) then sells the seasoned coater to the Operators. Your cost for the seasoned coater depends on a pricing formula that includes a markup by Chick-fil-A that may change. Based upon the cost of ingredients to Chick-fil-A (including any freight charges paid to the producer) your cost will fluctuate.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 43–49)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, Chick Fil A purchases the seasoned coater used in the preparation of most Chick-fil-A brand chicken products from the producer. After Chick Fil A purchases the seasoned coater, it is shipped directly to Chick-fil-A's authorized distributor(s).
The distributors then sell the seasoned coater to the Operators (franchisees). The cost for the seasoned coater depends on a pricing formula that includes a markup by Chick-fil-A that may change. The cost will fluctuate based upon the cost of ingredients to Chick-fil-A, including any freight charges paid to the producer.
This system ensures that Chick Fil A maintains control over a key ingredient and can profit from its distribution. Franchisees must purchase the seasoned coater from these approved distributors, and the price is subject to change based on Chick Fil A's pricing formula and ingredient costs. This arrangement allows Chick Fil A to generate revenue from the sale of the seasoned coater to its distributors, who then sell it to the franchisees.