When is the Advertising Fund Contribution fee due for a Churchs Chicken franchise?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
ncentives offered. |
| TYPE OF FEE1 | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Tax Reimbursement | If any taxes, fees or assessments are imposed on us by reason of our acting as franchisor or licensing proprietary marks to you, then you must reimburse us that amount | 30 days after receipt of invoice | |
| Advertising Fund Contribution | 5% of Gross Sales (up to 1% of Gross Sales if a Regional Co-Op has been formed, plus contribution to Co-Op) and at least $25,000/year | Same as Royalty | |
| Digital and Technology Fees | Then-current amount. Beginning on July 15, 2024, about $205 per period ($2,665 annually) plus 5% of first party digital sales. | Same as Royalty | These amounts may change. This fee covers the costs for your participation in our integrated platforms for enhancing customer experiences with ordering, product pick up, and engagement. The fixed annual fee may be discounted for restaurants that were open all of 2024 and had annual sales less than a determined threshold amount. |
| Transfer | $10,000 | On transfer of franchise | |
| Unauthorized Transfer | $25,000 | On transfer of franchise if transfer made in violation of Franchise Agreement | |
| Renewal | 50% of our then-current, standard, initial franchise fee | On signing of Franchise Agreement for the renewal term | Renewal is subject to contractual requirements. See Item 17. |
| Securities Offering Review Fee | $10,000 or any greater amount as necessary to reimburse us for reviewing the proposed offering | On request for review | Fee charged only if you propose to place securities in public or private offering. |
| New Supplier Inspection and Product Testing | Cost of inspecting the facilities of a previously unapproved supplier you propose and of testing ingredients, products, supplies or goods you propose to purchase from that supplier (could range from $0 to $5,000) | If incurred, on demand | You must pay the costs of our inspection of the facilities of a previously unapproved supplier you propose and of our testing ingredients, products, supplies or goods from that supplier. |
Source: Item 6 — OTHER FEES (FDD pages 19–24)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, the Advertising Fund Contribution fee is due at the same time as the Royalty fee. The Advertising Fund Contribution is 5% of Gross Sales (but can be up to 1% of Gross Sales if a Regional Co-Op has been formed, plus contribution to the Co-Op) and at least $25,000 per year.
According to the FDD, the Royalty fee is due within 5 business days after the end of each fiscal week. Note 2 in Item 6 of the FDD refers to Section 3.D of the Franchise Agreement for the definition of Gross Sales and also refers to Item 5 for a summary of the Platinum Incentive Plan and incentives offered.
Therefore, a Churchs Chicken franchisee must pay the Advertising Fund Contribution fee within 5 business days after the end of each fiscal week. This payment schedule requires franchisees to maintain diligent accounting practices to accurately calculate and remit the required fees on time. Franchisees should also be aware of the conditions under which the Advertising Fund Contribution can be reduced if a Regional Co-Op is formed.