Can Chick Fil A terminate the franchise agreement if the Chick Fil A business is discontinued?

According to the 2025 Chick Fil A Franchise Disclosure Document, Chick-fil-A has broad authority to terminate agreements. Specifically, Chick-fil-A retains the right to terminate the Food Truck Program agreement at any time, for any reason, or for no reason, in its sole and exclusive business judgment. This clause provides Chick-fil-A with significant latitude in deciding to end the agreement, which could include discontinuing a particular Chick Fil A business or program.

This discretion means that a Chick Fil A operator's rights are subject to Chick-fil-A's business decisions, potentially creating instability for the operator. The operator bears all risks associated with the termination of the agreement and remains liable for outstanding fees, including the Food Truck Usage Fee and Food Truck Insurance Fee, even after termination.

Furthermore, the termination of the Food Truck Program agreement can occur without necessarily affecting the broader Franchise Agreement, unless Chick-fil-A chooses to terminate the Franchise Agreement as well. However, if the Franchise Agreement is terminated or expires, the Food Truck Program agreement will automatically terminate at the same time. This interconnectedness means that any issues affecting the Franchise Agreement can also impact the Food Truck Program agreement.

Prospective Chick Fil A franchisees should carefully consider the implications of these termination clauses, especially the potential for Chick-fil-A to terminate the agreement for any reason. Understanding the conditions under which termination can occur and the financial responsibilities that continue after termination is crucial for assessing the risks and rewards of this franchise opportunity.