What is the term of the Chick Fil A Concession Sublicense Agreement?

According to Chick Fil A's 2025 Franchise Disclosure Document, the term of the Concession Sublicense Agreement for captive venue restaurant premises is tied to the Franchise Agreement. Specifically, the term of the Concession Sublicense Agreement is the same as the term of the Franchise Agreement, unless the Concession Agreement expires or terminates earlier. This means that if a franchisee operates a Chick Fil A restaurant in a non-traditional location like an airport or stadium, the agreement allowing them to do so lasts as long as their overall franchise agreement, provided the head lease that Chick Fil A has with the venue is still in effect.

For a prospective Chick Fil A franchisee, this is an important consideration when evaluating the opportunity to operate a captive venue unit. The franchisee needs to understand the terms of both their Franchise Agreement and the underlying Concession Agreement to fully grasp the length of time they will be able to operate at that location. If the Concession Agreement has a shorter term than the Franchise Agreement, the franchisee could lose the right to operate the captive venue unit before their Franchise Agreement expires.

This arrangement is fairly typical in franchise agreements involving subleases or sublicenses. The franchisor wants to ensure that the franchisee's right to operate is aligned with the franchisor's own rights to the property. This protects both parties and ensures a smooth transition if either the franchise agreement or the underlying lease is terminated.