Churchs Chicken
Church's Chicken offers quick-service fried chicken restaurants, known for their crispy chicken and Southern-style menu items. Part of the fast-food industry, it provides franchises with the rights to operate under the Church's Chicken brand.
Churchs Chicken franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin the operation of a new free-standing Church's Restaurant ranges from $1,114,650 to $1,636,300 for the Blaze Compact Model, $1,302,224 to $1,808,972 for the 1400 Blaze Image Model, $738,538 to $1,310,700 for a Conversion Restaurant Blaze Image Model, and $644,366 to $1,273,300 for the End Cap Blaze Image Model. [p.1]
What is the initial franchise fee?
The initial franchise fee varies based on certain conditions. For standard cases, it is $20,000 per Restaurant [p.17]. However, U.S. military veterans and first responders may pay a reduced fee of $10,000 for their first Restaurant under specific eligibility criteria [p.18]. This isn't specified in the excerpts for other scenarios or transfers.
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 5% of Gross Sales, as defined on [p.41], for the right to use the System and Proprietary Marks. There is no specified amount for advertising fees; however, franchisees must contribute to an Ad Fund, which is used for national system-wide advertising efforts, but individual franchisees are not obligated to spend any amount on local advertising as stated on [p.41].
How long is the initial franchise agreement, and can I renew it?
The initial term of the franchise agreement is not specified in terms of duration, but a renewal option for one 10-year term ('Renewal Term') is available if certain conditions are met. To exercise this renewal option, you must provide written notice to Cajun between 6 and 12 months before the expiration of the initial term [p.78].
Can I sell or transfer my franchise, and what does that require?
To sell or transfer your franchise, you need to advise Cajun in writing about any proposed transfer, submit a franchise application for the proposed transferee, and provide all requested contracts, agreements, or proposals. Cajun will then decide whether to approve the transfer in its sole discretion, considering various relevant factors [p.105].
On what grounds can the franchisor terminate the agreement?
The franchisor, Cajun, has the right to terminate the agreement if there is a default, as specified on [p.115]. This includes several potential actions such as charging a Default Royalty Rate, suspending marketing or support services, rescinding previous accommodations, removing the franchisee from digital media platforms, eliminating renewal options, or reducing the initial term.
What financial requirements — net worth and liquid capital — do I need to qualify?
This isn't specified in the excerpts. The FDD does not provide specific details on net worth or liquid capital requirements for qualification as a franchisee. [p.105] mentions that potential transferees must have adequate financial resources and working capital, but it does not quantify these requirements.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory under the standard Development Agreement. You have a specific Development Area to develop one or more Restaurants, but you may face competition from other franchisees, company-owned outlets, and other channels of distribution or competitive brands that Church's Chicken controls [p.317, p.43]. However, if you sign an Exclusive Development Agreement, you will be granted a geographic area where the company will not open a Restaurant or license others to do so, with certain exceptions [p.43].
What training and ongoing support does the franchisor provide?
The franchisor provides an initial Pathway to Excellence Advanced Operations and Leadership Training Program, which certifies employees as 'Certified Managers.' Additionally, they have a team with extensive experience in operations who develop and deliver training programs. The franchisor also requires that within 90 days of opening the first restaurant, it must be established as a Certified Training Restaurant (CTR) to conduct initial training programs for designated employees. [p.38, p.90, p.162]
How many franchised outlets are there, and how many have closed or been terminated?
As of December 31, 2024, there were 642 domestic free-standing Franchised and Company Restaurants. During the last three years, a high percentage (more than 13.33%) of franchised outlets, totaling 118, were terminated or ceased operations for other reasons [p.316].
Does the franchisor share any financial performance or earnings information?
The franchisor does not provide any financial performance or earnings representations [p.305]. However, they may provide actual records of an existing outlet if requested by a prospective franchisee [p.62], and written substantiation for such financial performance can be made available upon reasonable request [p.61].
What am I restricted to selling, and where must I buy supplies?
You are generally restricted to selling the products that incorporate the franchisor's trade secrets, such as specific food items and seasonings. You must buy Trade Secret Products only from designated suppliers [p.31]. For other supplies needed to operate the restaurant, you can purchase them from any approved supplier who meets certain standards, though some items like Proprietary Products must be bought only from manufacturers approved in writing by the franchisor [p.31] and certain goods may need to be purchased or leased from the franchisor or a limited group of suppliers they designate [p.34].