What actions must a Churchs Chicken franchisee take if deficiencies are detected during an inspection?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
C. Termination Following Inspection. Without limiting any of the foregoing grounds for termination, Cajun may terminate this Agreement, without opportunity to cure, if the Franchised Restaurant fails three inspections (according to Cajun's inspection system in effect at the time of each inspection) conducted by Cajun or its agents within any rolling 12-month period.
D. Cajun's Right To Cure. If Franchisee breaches or defaults under any provision of this Agreement or fails to comply with the Manual, Cajun may (but shall have no obligation to) take any action to cure such breach, default, or failure on Franchisee's behalf.
Franchisee shall reimburse Cajun for all reasonable costs and expenses incurred by Cajun in taking such action.
Cajun shall have no liability to Franchisee for any loss or damage to Franchisee related to Cajun's actions under this Section 18.D., except to the extent caused by Cajun's gross negligence or willful misconduct.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, if a Churchs Chicken franchisee fails three inspections within a rolling 12-month period, Churchs Chicken (Cajun) has the right to terminate the franchise agreement without providing an opportunity to cure the deficiencies.
Additionally, the FDD states that if a franchisee breaches any provision of the agreement or fails to comply with the manual, Churchs Chicken has the option, but not the obligation, to take action to correct the breach or failure on the franchisee's behalf. If Churchs Chicken chooses to take such action, the franchisee is required to reimburse Churchs Chicken for all reasonable costs and expenses incurred. However, Churchs Chicken is not liable for any loss or damage to the franchisee related to these actions, except in cases of gross negligence or willful misconduct by Churchs Chicken.
This section of the FDD outlines the potential consequences of failing inspections and the rights Churchs Chicken has to enforce compliance with the franchise agreement. It also clarifies the financial responsibilities of the franchisee in the event that Churchs Chicken intervenes to correct any breaches or failures. Franchisees should be aware of the inspection standards and ensure consistent compliance to avoid potential termination of the agreement.