For Chick Fil A, where is the Usage Fee set forth?
Chick_Fil_A Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: Receipts]
according to Chick-fil-A's then-current Minimum Standards, including any Guidelines for food trucks prepared by Chick-fil-A and delivered to or otherwise made available to the Operator from time to time. The provisions, terms and conditions of the Franchise Agreement concerning the sources for purchase of Products and Ingredients will apply to the sources of Products and Ingredients to supply the Food Truck. Any transportation of Products, Ingredients, promotional items, and other items by the Operator or otherwise will comply with and will otherwise abide by all applicable health, sanitation, food handling, food transportation and insurance requirements provided by law, the requirements contained in the Franchise Agreement, the Food Truck Lease and as otherwise required by Chick-fil-A (whichever provides the most stringent requirements). Without limiting the above, the Operator will not (and will not allow others to) transport any hazardous materials or anything other than Products, Ingredients, promotional items, and other items necessary for the safe, sanitary, and efficient operation of the Food Truck.
- c.
Payment of Food Truck Usage Fee.
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 Food Truck Usage Fee is detailed in the Food Truck License Summary. The franchisee, referred to as the Operator, is required to pay this fee to Chick Fil A as compensation for using the Food Truck under the sublease terms outlined in Section 4 of the agreement. This Usage Fee substitutes the lease rental payment that Chick-fil-A would otherwise pay to BALC.
Chick Fil A retains the right to periodically re-evaluate and adjust the Food Truck Usage Fee. This re-determination is based on factors such as the fair market rental value of the Food Truck, any modifications or changes to the truck, alterations to charges under the Food Truck Lease, and broader market conditions, including inflation and the passage of time. Any updates to the Usage Fee will be reflected in a revised Food Truck License Summary Form, which will then be attached to the agreement as Exhibit A.
This arrangement means that prospective Chick Fil A food truck operators need to pay close attention to the Food Truck License Summary and any revisions to it, as this document dictates the amount of the Usage Fee. They should also be aware that Chick Fil A can adjust this fee based on various market and operational factors, which could impact their overall costs and profitability. Understanding the terms of the Food Truck Lease and how it influences the Usage Fee is also crucial for financial planning.