What does the Amendment to the Churchs Chicken Development Agreement provide?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to a Franchise Agreement, you must sign a Development Agreement regardless of the number of Restaurants you commit to develop. A copy of our standard Development Agreement is attached as Exhibit G. Under the Development Agreement, you are granted the right and you accept the responsibility to develop a specific number of Restaurants in a specific geographic area (the "Development Area"). In some instances, we will sign an Amendment to the Development Agreement which provides limited exclusivity for the Development Area. A copy of our standard Amendment to Development Agreement is attached as Exhibit H. The Development Agreement also specifies the number of Restaurants that you must open and operate and the dates by which they must open and be in operation in a development schedule (the "Development Schedule") to the Development Agreement.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–10)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, franchisees must sign a Development Agreement, regardless of the number of restaurants they plan to develop. This agreement grants the franchisee the right and responsibility to develop a specific number of Churchs Chicken restaurants within a defined geographic area, known as the "Development Area."
In some instances, Churchs Chicken will sign an Amendment to the Development Agreement. This amendment provides limited exclusivity for the Development Area. The Development Agreement also outlines the number of restaurants the franchisee must open and operate, along with the specific dates by which these restaurants must be operational. This schedule is referred to as the "Development Schedule."
Prospective franchisees should carefully review both the standard Development Agreement (Exhibit G) and the Amendment to Development Agreement (Exhibit H) to fully understand their development obligations and any exclusivity rights granted. Understanding the Development Schedule is crucial, as failure to meet these deadlines could result in penalties or termination of the agreement. The limited exclusivity offered by the amendment can be a significant benefit, but franchisees should clarify the specific terms and limitations of this exclusivity with Churchs Chicken before signing.