What was the amount of restricted cash held by Churchs Chicken as of December 25, 2022?

According to Churchs Chicken's 2025 Franchise Disclosure Document, the company held $3,066 in restricted cash as of December 25, 2022. This restricted cash is part of the company's current assets.

Restricted cash, as detailed in the notes to the consolidated financial statements, pertains to cash accounts that Churchs Chicken is required to maintain under the 2021 Securitization agreements. These funds can only be used for specific purposes outlined in those agreements.

For a prospective Churchs Chicken franchisee, understanding the nature and purpose of these restricted cash accounts is crucial. It provides insight into the financial obligations and constraints under which Churchs Chicken operates, which may indirectly affect franchisees. While the FDD provides the amount of restricted cash, it does not detail the specific purposes for which the cash is restricted. A potential franchisee should inquire about the specifics of the 2021 Securitization agreements and how they might impact the franchise system.