Who administers the Churchs Chicken Advertising Fund?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
The Company's franchise agreements for all restaurants owned by the Parent, the Company, domestic franchisees, and certain international franchisees, including all franchisees in Puerto Rico, require participation and contributions of a percentage of their gross sales to an advertising fund administered by Church's Chicken Advertising Fund (the Fund).
We administer the Ad Fund and have the right to direct all spending by the Ad Fund.
All franchisees must contribute to our Ad Fund. You must contribute to the Ad Fund each week 5% of your Restaurant's Gross Sales. However, we may require you to contribute a minimum of $25,000 per year to the Ad Fund. If we create an Ad Co-op and require your participation, you must still contribute 5% of your Restaurant's weekly Gross Sales to the Ad Fund. All franchisees contribute to the Ad Fund on the same basis (except that some older Franchise Agreements may provide for different contribution rates and certain franchisees in captive locations (e.g., food courts) may have a negotiated lower Ad Fund contribution rate).
Restaurants that we and our affiliates own contribute to the Ad Fund on the same basis as you, except where our restaurants contribute a greater percentage of Gross Sales than you.
We do not audit the Ad Fund on an annual basis. We do prepare an annual statement of monies collected and costs incurred by the Ad Fund and can provide it to you on written request.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 35–43)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, the Churchs Chicken Advertising Fund (Ad Fund) is administered by the company itself. The franchise agreements require franchisees to contribute a percentage of their gross sales to this fund. Churchs Chicken has the authority to direct all spending from the Ad Fund.
The Ad Fund is used for advertising, marketing, and public relations programs, as well as related activities, to support each designated market area (DMA). Churchs Chicken states that the Ad Fund will not be used for its general operating expenses, except for costs incurred in administering the fund and running advertising and marketing programs. The company may charge the Ad Fund for reasonable costs related to market research, and the production and distribution of advertising materials.
All Churchs Chicken franchisees must contribute to the Ad Fund, with a requirement to contribute 5% of their restaurant's gross sales weekly. Churchs Chicken may also require a minimum annual contribution of $25,000. Restaurants owned by Churchs Chicken and its affiliates also contribute to the Ad Fund on the same basis as franchisees, or sometimes at a greater percentage of gross sales. Churchs Chicken does not conduct annual audits of the Ad Fund but prepares an annual statement of monies collected and costs incurred, which is available to franchisees upon written request.