What assets can Cajun exclude from the purchase when buying assets from a Churchs Chicken franchisee?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Cajun may exclude from the Assets purchased in accordance with this Section any equipment, vehicles, furnishings, fixtures, signs, and inventory that are not approved as meeting then-current standards for a Church's Restaurant or for which Franchisee cannot deliver a bill of sale in a form satisfactory to Cajun.
Cajun may set off against and reduce the Purchase Price by any and all amounts owed by Franchisee to Cajun, and the amount of any encumbrances or liens against the Assets or any obligations assumed by Cajun.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, when Cajun exercises its option to purchase assets from a franchisee, it has certain rights to exclude specific items from the purchase. Cajun, which appears to be Churchs Chicken's parent company, can exclude any equipment, vehicles, furnishings, fixtures, signs, and inventory that do not meet the current standards for a Churchs Chicken restaurant. This protects Cajun from acquiring outdated or non-compliant assets.
Additionally, Cajun can exclude any assets for which the franchisee cannot provide a satisfactory bill of sale. This requirement ensures that Cajun receives proper documentation of ownership for the assets it purchases, reducing the risk of future disputes over ownership or title.
Furthermore, Cajun has the right to offset and reduce the purchase price by any amounts the franchisee owes to Cajun. This includes any encumbrances or liens against the assets, as well as any obligations assumed by Cajun. This provision allows Cajun to protect its financial interests by deducting outstanding debts and liabilities from the purchase price, ensuring a cleaner transaction.