What specific license does Chick Fil A grant to the Operator for the Food Truck?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
als, the mutual covenants and agreements contained in this Agreement, as well as in the Franchise Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties, each intending to be legally bound, agree as follows:
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- Definitions; Recitals. Capitalized terms used but not otherwise defined in this Agreement, including in the Food Truck License Summary Form attached as Exhibit A, as it may be amended from time to time (the "Food Truck License Summary"), will have the meanings given to them in the Franchise Agreement. The parties incorporate into this Agreement the recitals set forth above as if set forth here in full.
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, Chick-fil-A grants the Operator a limited license to use and operate the Food Truck. This license allows the Operator to use the Trade Name, the Marks, and the System, which Chick-fil-A may modify from time to time. The license also includes the right to conduct the Licensed Use as an extension and part of the Business.
The license is subject to the terms and conditions outlined in the agreement and the Franchise Agreement. It is non-exclusive, meaning the Operator does not receive exclusive territorial rights in the Sales Locations or any surrounding market areas. Chick-fil-A retains all rights and licenses not expressly granted to the Operator.
The initial term of the agreement commences on the Effective Date and ends on December 31st of the same year, unless terminated earlier as provided in the agreement or the Franchise Agreement. This license is contingent upon the Operator entering into a written license agreement with Chick-fil-A, where the Operator agrees to faithfully perform their obligations regarding the Food Truck. Any Food Truck licensed by Chick-fil-A is considered an extension of the Operator's existing Business, not a separate entity.