For Chick Fil A, what is the Usage Fee intended to compensate Chick-fil-A for?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
In consideration of the License granted in this Agreement and to compensate Chick-fil-A for the use of the Food Truck under the sublease of the Food Truck Lease granted in Section 4 of this Agreement, the Operator will pay to Chick-fil-A when due the usage fee(s) as set forth in the Food Truck License Summary (the "Usage Fee"), which will be in lieu of the lease rental payment described in the Food Truck Lease payable by Chickfil-A to BALC.
Chick-fil-A shall have the right from time to time to re-determine the Food Truck Usage Fee in its sole and exclusive business judgment based on the then current fair market rental value for the Food Truck due to additions, subtractions and modifications to the Food Truck, additional or different charges or other changes under the Food Truck Lease, market factors, inflation, passage of time or otherwise, and to update the Food Truck Usage Fee to an amount based on the then determined, current fair market rental, 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.
Source: Item 23 — Receipts (FDD pages 103–600)
What This Means (2025 FDD)
According to Chick Fil A's 2025 Franchise Disclosure Document, the Usage Fee is intended to compensate Chick-fil-A for the use of the Food Truck under the sublease of the Food Truck Lease. This fee is paid by the Operator in consideration of the license granted in the agreement. The Usage Fee is in lieu of the lease rental payment that Chick-fil-A would otherwise pay to BALC under the Food Truck Lease.
Chick-fil-A retains the right to re-determine the Food Truck Usage Fee periodically. This re-determination is based on factors such as the fair market rental value of the Food Truck, any modifications or changes to the Food Truck, additional charges under the Food Truck Lease, market factors, inflation, and the passage of time. The updated Usage Fee will be based on the current fair market rental value at the time of re-determination.
Any adjustments to the Food Truck Usage Fee will be documented in a revised Food Truck License Summary Form, which will then be attached to the agreement as Exhibit A. This ensures that the Operator is informed of any changes to the fee and the basis for those changes. This process allows Chick-fil-A to maintain the Usage Fee at a level that reflects the current value and costs associated with the Food Truck, while also providing transparency to the Operator.