What is the term of a Chick Fil A sublease for restaurant premises?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
Chick-fil-A leases and subleases traditional restaurant premises to its Operators. The business terms for these leases and subleases vary depending on the location of the Chick-fil-A Restaurant. If you lease the restaurant premises from us, the term of any Lease for the restaurant premises is the same as the term of your Franchise Agreement. If you sublease the premises from us, you will be required to comply with the terms of the prime lease or ground lease between Chick-fil-A and the landlord. The term of any sublease for the restaurant premises is the same as the term of your Franchise Agreement or the earlier expiration or termination of the lease between Chick-fil-A and the landlord, whichever is shorter.
Source: Item 10 — Financing (FDD pages 51–55)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, the term of a sublease for restaurant premises is tied to the Franchise Agreement's term. Specifically, the sublease lasts for the same duration as the Franchise Agreement, unless the lease between Chick Fil A and the landlord expires or terminates earlier. In that case, the sublease ends when Chick Fil A's lease with the landlord ends.
This means a Chick Fil A franchisee's right to operate at a specific location under a sublease is directly dependent on the continued validity of both their Franchise Agreement and Chick Fil A's underlying lease with the property owner. If either of these agreements terminates, the franchisee's sublease also terminates.
This arrangement carries implications for the franchisee. It highlights the importance of understanding the terms and conditions of both the Franchise Agreement and the underlying lease. Franchisees should be aware of any conditions that could lead to early termination of either agreement, as this would directly impact their ability to continue operating the Chick Fil A restaurant at that location. This is a fairly standard practice in the franchise industry, as the franchisor needs to maintain control over the real estate and ensure consistent brand standards.