What is the basis for the contribution to the Churchs Chicken advertising fund?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
are not required to consult with the Marketing EAC.
The Ad Fund:
All franchisees must contribute to our Ad Fund. You must contribute to the Ad Fund each week 5% of your Restaurant's Gross Sales. However, we may require you to contribute a minimum of $25,000 per year to the Ad Fund. If we create an Ad Co-op and require your participation, you must still contribute 5% of your Restaurant's weekly Gross Sales to the Ad Fund. All franchisees contribute to the Ad Fund on the same basis (except that some older Franchise Agreements may provide for different contribution rates and certain franchisees in captive locations (e.g., food courts) may have a negotiated lower Ad Fund contribution rate).
Restaurants that we and our affiliates own contribute to the Ad Fund on the same basis as you, except where ou
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 35–43)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, franchisees are required to contribute to the Ad Fund. The standard contribution is 5% of the Restaurant's Gross Sales each week. However, Churchs Chicken may require a minimum annual contribution of $25,000 to the Ad Fund.
Even if Churchs Chicken establishes an Ad Co-op requiring franchisee participation, the franchisee must still contribute 5% of their Restaurant's weekly Gross Sales to the Ad Fund. The FDD states that all franchisees contribute to the Ad Fund on the same basis. There are a couple of exceptions to this rule. Some older franchise agreements may stipulate different contribution rates. Also, franchisees in captive locations, such as food courts, might have negotiated a lower Ad Fund contribution rate.
Restaurants owned by Churchs Chicken and its affiliates also contribute to the Ad Fund. These company-owned restaurants contribute on the same basis as franchisees, or sometimes at a greater percentage of Gross Sales. This ensures that both franchisees and the franchisor are invested in the advertising and marketing efforts to support the Churchs Chicken brand.