When was the bankruptcy matter closed by the court, as stated in the Churchs Chicken FDD?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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ITEM 3 LITIGATION
Franchisor Initiated Litigation 2024 Fiscal Year – Enforcement of Express Contract Terms:
Cajun Global, LLC v. Carolina Café Services, Inc., Case No. 24CV003456 (Fulton County, Georgia Superior Court). We filed suit against defendant on March 19, 2024. Defendant is a former Church's Chicken franchisee, which ceased operating its franchised restaurant before the end of the franchise agreement term. We brought claims for breach of the franchise agreement, lost royalty damages resulting from the premature closure of the restaurant, and attorneys' fees. On March 6, 2025, by agreement of the parties, the Court entered a Consent Final Judgment finding in favor of us on each of our claims and awarding us damages of $136,000.00, plus pre- and post-judgment interest, thereby terminating the litigation.
Other Concluded Franchise Litigation of Cajun Global:
Saheer Ur Rehman Chaudhry & Ors v. Cajun Operating Company, Claim Number: A40LS211 (High Court of Justice, Queen's Bench Division, Leeds District Registry, March 11, 2014) (the "211 Claim") and Ali Nawaz, Rob Nawaz and Sukhraj Singh Klair & Ors v Cajun Operating Company, Claim Number: A40LS212, (High Court of Justice, Queen's Bench Division, Leeds District Registry, March 11, 2014) (the "212 Claim"). Former franchisees of the Texas Chicken brand brought these two claims against Cajun Operating claiming that Cajun Operating and its employees and consultants used fraud, negligent misstatements and deceit to induce the claimants to develop Texas Chicken restaurants in the U.K. All of the restaurants opened by the claimants were subsequently closed and claimants sought monetary damages for the amount of their investment in the franchises plus costs and interests. Cajun Operating and the claimants participated in a non-binding mediation procedure on November 11, 2015 during which the claimants dismissed the case with prejudice in consideration for a payment by Cajun Operating in the amount of £350,000 and no admission of liability on the part of Cajun Operating.
Cajun Global LLC, d/b/a Church's Chicken, et al. v. Thomas & Irons, LLC, et al., Case No.
Source: Item 4 — BANKRUPTCY (FDD pages 16–17)
What This Means (2025 FDD)
The 2025 Churchs Chicken Franchise Disclosure Document (FDD) mentions two concluded franchise litigation cases involving Cajun Global, LLC. The first case, Cajun Global, LLC v. Carolina Café Services, Inc., was filed on March 19, 2024, and concerned a former Churchs Chicken franchisee who ceased operations before the end of their franchise agreement. The lawsuit included claims for breach of the franchise agreement and lost royalty damages. The court entered a Consent Final Judgment on March 6, 2025, in favor of Churchs Chicken, awarding $136,000.00 in damages, plus interest, thereby terminating the litigation.
The second litigation, detailed in the Churchs Chicken 2025 FDD, involves two claims brought by former Texas Chicken franchisees against Cajun Operating Company in the U.K. The franchisees alleged fraud and misrepresentation induced them to develop Texas Chicken restaurants, which later closed. The franchisees sought damages equal to their investment. These claims, Claim Number A40LS211 and Claim Number A40LS212, were resolved through non-binding mediation on November 11, 2015. The claimants dismissed the case with prejudice after Cajun Operating paid £350,000, with no admission of liability.
It is important to note that the document does not mention any bankruptcy cases involving Churchs Chicken. The litigation described pertains to contractual disputes with franchisees, not bankruptcy proceedings. A prospective franchisee should ask the franchisor for clarification on any past or pending bankruptcy cases involving the company or its affiliates to fully understand the financial health and stability of the Churchs Chicken franchise system.