Under what conditions can Chick Fil A re-determine the Food Truck Fee?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
Chick-fil-A shall have the right from time to time to re-determine the Food Truck Fee in its sole and exclusive business judgment based on market factors and conditions, inflation, passage of time or otherwise, and to update the Food Truck Fee to an amount based on the then re-determined, then current market Food Truck Fee, which will be set forth in a revised Food
Truck License Summary Form and substituted and attached to this Agreement as Exhibit A and made a part of this Agreement. At Chick-fil-A's election, the program described in Section 14.12 of the Franchise Agreement shall apply to the Operator's payment obligations described in this Agreement with respect to the Food Truck and any other payment obligations of the Operator hereunder, and any adjustment or increases thereto.
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, Chick-fil-A has the authority to re-determine the Food Truck Fee. This determination can be made based on Chick-fil-A's sole and exclusive business judgment, considering factors such as market conditions, inflation, and the passage of time. This allows Chick-fil-A to adjust the fee to reflect current market values.
If Chick-fil-A decides to re-determine the Food Truck Fee, the updated fee will be detailed in a revised Food Truck License Summary Form. This revised form will then be substituted for the previous one, attached as Exhibit A to the agreement, and become a part of the agreement. This ensures that the franchisee is formally notified of the change and that the updated fee structure is documented within the franchise agreement.
Furthermore, Chick-fil-A has the option to apply the program described in Section 14.12 of the Franchise Agreement to the operator's payment obligations related to the Food Truck. This could involve adjustments or increases to the payment obligations. This clause provides Chick-fil-A with flexibility in managing the financial aspects of the Food Truck operation and ensuring that the fees align with the current market and operational conditions.