Under what condition can Chick Fil A terminate the Franchise Agreement as well as this agreement?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
It is also expressly acknowledged and agreed by Chick-fil-A and the Operator that the termination, expiration, or revocation of the Franchise Agreement by either party for any reason, either in whole or in part, shall also terminate this Lease effective immediately, without further notice being required.
- 10.3 Duties Upon Termination or Expiration.
Upon the termination or expiration of one or both of this Lease or the Franchise Agreement for any reason, the Operator shall (i)
immediately return to Chick-fil-A all of the Equipment; (ii) immediately pay Chick-fil-A the full amount of all sums due and owing under this Lease; (iii) remove all of Operator's personal property, if any, from the Site and shall repair any resulting damage to the Site; and (iv) quit and surrender the Site to Chick-fil-A broom clean, in good order and condition, ordinary wear and tear and damage by fire or other casualty excepted.
10.4 Duty to Vacate.
The Operator shall vacate the Site of such terminated Business and return to Chick-fil-A all of the Equipment immediately upon the termination or expiration of one or both of this Lease or the Franchise Agreement, and permit the peaceable possession of the Site by Chick-fil-A or, at Chick-fil-A's election, a new authorized operator.
Should the Operator fail to do so, Chick-fil-A may re-enter, expel, remove and put out the Operator and all persons occupying the Site under the Operator, using such force as may be reasonably necessary in so doing, and repossess the Site.
Such re-entry and repossession shall not be deemed a forfeiture of any past due Rent or Additional Charges and Expenses to be paid hereunder and shall not terminate any covenants to be performed by the Operator during the Term of this Lease.
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, the termination, expiration, or revocation of the Franchise Agreement by either party for any reason, whether in whole or in part, shall also terminate the Lease effective immediately, without further notice being required. This means that if either Chick Fil A or the operator terminates the Franchise Agreement, the lease agreement is also immediately terminated.
Upon termination or expiration of either the Lease or the Franchise Agreement, the operator must return all equipment to Chick Fil A, pay all outstanding sums due under the lease, remove all personal property from the site, repair any damage caused by the removal, and surrender the site to Chick Fil A in good condition, with exceptions for ordinary wear and tear or damage from fire or other casualties. The operator is required to vacate the premises immediately and return all equipment, allowing Chick Fil A to take possession or install a new operator.
If the operator fails to vacate the site, Chick Fil A has the right to re-enter the premises, remove the operator and any occupants, and repossess the site, using reasonable force if necessary. This repossession does not waive Chick Fil A's right to collect any past due rent or additional charges, nor does it terminate any covenants the operator must perform during the lease term.