What agreement does the franchisee enter into to develop one or more franchised Churchs Chicken restaurants?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee and Cajun are parties to a Church's Texas Chicken Development Agreement (the "Development Agreement"), pursuant to which Franchisee has agreed to develop one or more franchised Church's Restaurants.
In order to encourage the development of new franchised Church's Texas Chicken restaurants by franchisees who satisfy Cajun's financial requirements for new development, Cajun has implemented a development incentive program (the "Platinum Incentive Plan") for franchised Church's Texas Chicken restaurants ("Franchised Restaurants") that are developed pursuant to a Church's Texas Chicken Development Agreement that provides for the development of a minimum of five Franchised Restaurants within 5 years (the "Development Agreement").
Cajun and Developer are entering into this Addendum to modify the Development Agreement and to provide for Developer's receipt of the development incentives offered by Cajun pursuant to the Platinum Incentive Plan.
- A. In order to be eligible for the Platinum Incentive Plan, Developer must open its first Franchised Restaurant no later than one year following the date of the Development Agreement (the "First Restaurant Deadline"). If Developer fails to open its first Franchised Restaurant by the First Restaurant Deadline, Developershall not be entitled to receive any benefits under the Platinum Incentive Plan.
- B. If the first Franchised Restaurant is developed in accordance with Section 1.A., the Platinum Incentive Plan benefits set forth in this Addendum shall apply to the second through fifth Franchised Restaurants that Developer opens in full compliance with the Development Schedule and the Development Agreement (each an "Eligible Restaurant"); provided that each Franchised Restaurant is opened by Developer by no later than one year after the opening date of the immediately prior Franchised Restaurant.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, a franchisee enters into a Church's Texas Chicken Development Agreement to develop one or more franchised Churchs Chicken restaurants.
The Development Agreement requires the franchisee to develop a minimum of five franchised Churchs Chicken restaurants within 5 years. Churchs Chicken may also implement a development incentive program for franchisees who satisfy the financial requirements for new development.
Churchs Chicken and the developer may enter into an addendum to modify the Development Agreement and provide for the developer's receipt of development incentives offered by Churchs Chicken under the Platinum Incentive Plan. To be eligible for the Platinum Incentive Plan, the developer must open their first franchised restaurant no later than one year following the date of the Development Agreement. The Platinum Incentive Plan benefits apply to the second through fifth Franchised Restaurants that the developer opens in compliance with the Development Schedule and the Development Agreement, provided each restaurant is opened no later than one year after the opening date of the immediately prior Franchised Restaurant.