What was the total outstanding amount for Chick Fil A as of December 31, 2024?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
| 4,425,586 | | Carrying amount of notes payable | $ 3,070,298,829 |
6. Employee Benefit Plans
The Company has a qualified contributory profit sharing plan covering substantially all employees. The Company matches dollar-for-dollar up to 5% of eligible compensation contributed by each employee. The Company recorded contribution expense of approximately $48,105,000, $37,637,000, and $28,377,000, during the years ended December 31, 2024, 2023 and 2022, respectively, reflected within Selling, general and administrative expenses in the accompanying consolidated statements of comprehensive earnings.
The Company also has a qualified defined benefit pension plan covering certain eligible employees. As part of the acquisition of Dwarf House Group during 2024, the Company also acquired a defined benefit pension plan for employees of DHG which is now included in Chick-fil-A's existing plan as of the date of acquisition. The plan provides a defined benefit based on years of service and highest average compensation during a f
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, as of December 31, 2024, the qualified defined benefit plan had an underfunded balance of approximately $202,464,000, which is reflected within Other long-term liabilities on the consolidated balance sheets. Additionally, the non-qualified defined benefit plan had an underfunded balance of approximately $130,629,000, reflected within Accrued expenses and obligations and Other long-term liabilities on the consolidated balance sheets.
These figures represent the underfunded status of Chick Fil A's employee benefit plans. For the qualified defined benefit plan, Chick Fil A made total funding payments of approximately $22,421,000 during 2024. No funding payments were made for the non-qualified defined benefit plan during the same year.
For a prospective franchisee, this information provides insight into Chick Fil A's financial obligations related to employee benefits. While franchisees are not directly responsible for these liabilities, understanding the overall financial health and obligations of the franchisor can be valuable in assessing the stability and long-term viability of the franchise system.