Which sentence is deleted from Section 23 of the Chick Fil A Franchise Agreement by this amendment?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
- Section 23 of the Franchise Agreement, under the heading entitled "Restrictions Deemed Reasonable" shall be amended by deleting the remainder of the final sentence beginning "not based on any representations", so that Section 23 reads as follows:
The Operator, and, as applicable, the Operator-Owner, hereby acknowledge that the Operator, and, as applicable, the Operator-Owner, have carefully considered the nature and extent of the restrictions upon the Operator (and, as applicable, the Operator-Owner) and the rights and remedies conferred on Chick-fil-A under this Agreement, including without limitation those rights and remedies of Chick-fil-A set forth in Sections 18, 19, 20, 21 and 22 above, and hereby agree that (i) the same are reasonably required and designed solely to protect proprietary and other important rights of Chick-fil-A and (ii) as such are reasonable in time, scope and territory. The Operator, and, as applicable, the Operator-Owner, further acknowledge and agree that the restrictions upon the Operator (and, as applicable, the Operator-Owner) and the rights and remedies conferred on Chick-fil-A under this Agreement are essential elements of this Agreement and that without their inclusion, Chick-fil-A would not have entered into this Agreement. The Operator represents and warrants that the Operator's signature appearing on this Agreement is genuine and freely and knowingly given.
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to the 2025 Chick Fil A Franchise Disclosure Document, Section 23 of the Franchise Agreement, specifically under the heading "Restrictions Deemed Reasonable," is being amended. The amendment involves deleting a portion of the final sentence. This deletion applies to the remainder of the sentence that begins with the phrase "not based on any representations."
In practical terms, this means that the original Franchise Agreement contained language in Section 23 that included a statement starting with "not based on any representations." This statement is now being removed from the agreement. The remaining portion of Section 23, as quoted, emphasizes that the operator acknowledges the restrictions and rights outlined in the agreement are reasonable and necessary to protect Chick Fil A's proprietary rights.
For a prospective franchisee, this change indicates a modification in the legal terms regarding the restrictions placed upon them. While the document doesn't provide the full original sentence, it's important for potential franchisees to understand what representations were initially referenced and why Chick Fil A has chosen to remove that specific clause. This could impact how franchisees interpret their obligations and the enforceability of certain restrictions within the agreement. It would be prudent for a prospective franchisee to seek legal counsel to fully understand the implications of this amendment.