What is the amount of the unauthorized transfer fee for a Churchs Chicken franchise?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPT]
- (1) Franchisee shall pay Cajun a nonrefundable Transfer fee in the amount of $10,000 in connection with Cajun's review of the Transfer application.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, a franchisee must pay a transfer fee of $10,000 when transferring their franchise. This fee is non-refundable and covers Cajun's (Churchs Chicken's parent company) review of the transfer application.
Specifically, this fee is associated with Cajun reviewing the transfer application. The franchisee is responsible for covering Cajun's costs and expenses related to reviewing any proposed offering. This includes legal and accounting fees, in addition to the stated fee.
Furthermore, the franchisee is obligated to provide an opinion from their legal counsel, addressed to Cajun, ensuring that all offering documents properly use the brand's proprietary marks and accurately depict the relationship between the franchisee and Cajun. This requirement adds another layer of cost and complexity to the transfer process, as the franchisee will need to engage legal counsel to provide this opinion. The $10,000 fee is non-refundable, regardless of whether the transfer is ultimately approved.