What actions must a Churchs Chicken franchisee take to advise Cajun of a proposed Transfer?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall advise Cajun in writing of any proposed Transfer, submit (or cause the proposed transferee to submit) a franchise application for the proposed transferee, and submit a copy of all contracts, agreements or proposals, and all other information requested by Cajun relating to the proposed Transfer.
If Cajun does not exercise its right of first refusal as described in Section 15.I., the decision as to whether or not to approve a proposed Transfer shall be made by Cajun in its sole discretion and may include numerous factors deemed relevant by Cajun.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, a franchisee looking to transfer their franchise must take specific steps to inform Cajun. The franchisee is required to provide written notice to Cajun of any proposed transfer. This notification must include a franchise application submitted by (or on behalf of) the proposed transferee.
Furthermore, the franchisee must submit copies of all contracts, agreements, or proposals related to the transfer. They must also provide any other information requested by Cajun pertaining to the proposed transfer. This ensures that Cajun has a comprehensive understanding of the proposed transfer and the qualifications of the potential transferee.
Cajun retains the right of first refusal, as detailed in Section 15.I, meaning they have the option to purchase the franchise themselves before approving a transfer to a third party. If Cajun waives this right, they still maintain sole discretion over whether to approve the transfer, considering factors such as the transferee's experience, financial resources, and compatibility with Churchs Chicken's management culture.