Under what conditions can the Chick Fil A lease be terminated early?
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.
- the Operator shall have fifteen (15) days from the date of such notice to decide and to notify Chick-fil-A in writing of the Operator's decision to either renew upon the terms offered or not renew upon the terms offered.
The Operator's failure to provide timely notice to Chick-fil-A of a decision to either renew or not renew upon such changed terms and conditions shall be deemed to be an election by the Operator to terminate this Lease at the end of such Term.
Notwithstanding anything in this Lease to the contrary, this Lease shall terminate automatically without any notice to the Operator (i) upon the expiration or earlier termination of the Franchise Agreement or any applicable Prime Lease or Ground Lease, as the case may be, or (ii) if and when the Operator (or as applicable, the Operator-Owner (as that term is expressly defined in the Franchise Agreement)) dies or becomes disabled to the extent that the Operator (or, as applicable, the Operator-Owner) is unable to perform any of their respective obligations under this Lease or under the Franchise Agreement.
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, the lease agreement between Chick Fil A and the operator can be terminated early under several conditions. One key condition is related to the Franchise Agreement itself; if the Franchise Agreement is terminated, expires, or is revoked by either party for any reason, the lease is also terminated immediately without any further notice required. This means that the lease is directly tied to the Franchise Agreement, and the operator's right to occupy the premises is contingent upon maintaining a valid Franchise Agreement.
Another condition for early termination arises if the operator fails to provide timely notice to Chick Fil A regarding their decision to renew the lease under changed terms and conditions. Chick Fil A has the right to change the terms and conditions of the agreement upon renewal of the Franchise Agreement, providing the operator with written notice at least forty-five days before the end of the current term. The operator then has fifteen days to decide and notify Chick Fil A of their decision to renew or not renew. Failure to provide this notice within the specified timeframe is considered an election by the operator to terminate the lease at the end of the current term.
Additionally, the lease will terminate automatically without notice to the operator upon the expiration or earlier termination of the Franchise Agreement or any applicable Prime Lease or Ground Lease. The lease also terminates automatically if the operator dies or becomes disabled to the extent that they are unable to perform their obligations under the lease or the Franchise Agreement. These provisions ensure that Chick Fil A can maintain control over the operation and location of its franchises, and they protect the company's interests in the event of unforeseen circumstances affecting the operator's ability to manage the business.