factual

Besides domestic franchisees, which other specific franchisees are required to contribute to the Churchs Chicken advertising fund?

Churchs_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

The Company's franchise agreements for all restaurants owned by the Parent, the Company, domestic franchisees, and certain international franchisees, including all franchisees in Puerto Rico, require participation and contributions of a percentage of their gross sales to an advertising fund administered by Church's Chicken Advertising Fund (the Fund).

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, certain international franchisees are required to contribute to the advertising fund, in addition to restaurants owned by the Parent, the Company, and domestic franchisees. Specifically, this includes all Churchs Chicken franchisees located in Puerto Rico. These franchisees must contribute a percentage of their gross sales to the Church's Chicken Advertising Fund, which is administered by the Fund.

This requirement ensures that a broad base of franchisees supports the advertising and marketing efforts of the Churchs Chicken system. By including specific international locations like Puerto Rico, Churchs Chicken aims to maintain a consistent brand image and marketing strategy across different markets. This collective contribution model is typical in franchising, allowing for more impactful advertising campaigns than individual franchisees could achieve on their own.

Prospective franchisees should be aware of this mandatory contribution, as it will impact their operating costs and financial planning. Understanding the specific percentage of gross sales required and how the advertising fund is managed is crucial for assessing the overall financial viability of a Churchs Chicken franchise. Franchisees should also inquire about the performance and effectiveness of the advertising campaigns funded by these contributions to ensure they are receiving adequate value for their investment.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.