What actions or omissions by a Churchs Chicken Developer, Operating Principal, or other related parties could lead to termination of the Development Agreement based on adverse effects to Cajun or the System?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
If Cajun hasthe right to terminate this Agreement under Section 15.A., then Cajun may take any one or more of the following actions prior to or in lieu of termination:
(1) reduce the number of Franchised Restaurants which Developer is required to establish pursuant to Section 3.A. of this Agreement;
(2) reduce the size of the Development Area;
(3) withhold evaluation or acceptance of site proposal packages and refuse to permit the opening of any Franchised Restaurant then under construction or not otherwise not ready to commence operations, pending satisfactory cure of any such default;
(4) accelerate the Development Schedule; and
(5) pursue any other remedies available under this Agreement (including termination) or at law or in equity.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
Based on the 2025 Churchs Chicken Franchise Disclosure Document, the document does not provide specific details on actions or omissions by a Churchs Chicken Developer, Operating Principal, or other related parties that would lead to termination of the Development Agreement based on adverse effects to Cajun or the System.
However, the FDD does mention circumstances related to termination and actions Cajun may take in lieu of termination. For example, if Cajun has the right to terminate the Development Agreement, they may choose to reduce the number of franchised restaurants the developer is required to establish, reduce the size of the development area, withhold evaluation or acceptance of site proposal packages, accelerate the development schedule, or pursue other remedies available under the agreement or at law.
To fully understand the specific actions or omissions that could lead to termination, a prospective Churchs Chicken franchisee should ask the franchisor for a comprehensive list and explanation of these potential causes. This information is crucial for understanding the risks and responsibilities associated with the Development Agreement.