What does 'Terminations' represent in the Chick Fil A franchise outlet table?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
For purposes of the above table, "Terminations" reflects the total number of Franchise Agreements terminated in each state during each fiscal year by Chick-fil-A prior to the end of the Franchise Agreement's term and without providing any consideration to the Operator (whether by payment, forgiveness or assumption of debt, or new franchised Chick-fil-A Restaurant opportunity).
Source: Item 20 — Outlets and Franchisee Information (FDD pages 83–102)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, the term "Terminations" in the context of the franchise outlet table specifically refers to the total count of Franchise Agreements that Chick Fil A ended in each state during a given fiscal year. These terminations occur before the Franchise Agreement's original term concludes.
Importantly, these terminations are enacted by Chick Fil A without providing any form of compensation to the Operator. This lack of consideration can include various forms of payment, debt forgiveness, opportunities to operate a new franchised Chick Fil A Restaurant. This definition is crucial for prospective franchisees to understand the conditions under which their agreement could be terminated and the implications of such a termination.
It is important to note that this definition applies to franchised Chick Fil A Restaurants. The FDD also includes data on company-owned outlets and licensed units, which have their own definitions and conditions for terminations. Therefore, franchisees should carefully review the specific table and its corresponding notes to understand the context of the data presented.