Besides a Franchise Agreement, what other agreement must a Churchs Chicken franchisee sign?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to a Franchise Agreement, you must sign a Development Agreement regardless of the number of Restaurants you commit to develop. A copy of our standard Development Agreement is attached as Exhibit G. Under the Development Agreement, you are granted the right and you accept the responsibility to develop a specific number of Restaurants in a specific geographic area (the "Development Area"). In some instances, we will sign an Amendment to the Development Agreement which provides limited exclusivity for the Development Area. A copy of our standard Amendment to Development Agreement is attached as Exhibit H. The Development Agreement also specifies the number of Restaurants that you must open and operate and the dates by which they must open and be in operation in a development schedule (the "Development Schedule") to the Development Agreement.
On a limited basis we may sublease the premises of the Church's Restaurant to you. If that occurs you must sign a "Sublease" in addition to the Franchise Agreement and Development Agreement. A copy of our form Sublease is attached as Exhibit Q. The Sublease that you sign may vary from this form based on many factors, such as the underlying lease.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–10)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, franchisees must sign a Development Agreement in addition to the Franchise Agreement, regardless of the number of restaurants they commit to develop. The Development Agreement grants the franchisee the right and responsibility to develop a specific number of Churchs Chicken restaurants within a defined geographic area. In some cases, an Amendment to the Development Agreement may be signed, providing limited exclusivity for the Development Area. The Development Agreement also outlines the number of restaurants the franchisee must open and operate, along with the dates by which they must be operational, as detailed in the Development Schedule.
Furthermore, Churchs Chicken may sublease the restaurant premises to the franchisee on a limited basis. If this occurs, the franchisee must sign a Sublease in addition to the Franchise Agreement and Development Agreement. The terms of the Sublease may vary from the standard form based on factors such as the underlying lease.
In summary, a prospective Churchs Chicken franchisee should anticipate signing at least two agreements: the Franchise Agreement and the Development Agreement. Depending on the specific circumstances, such as a sublease arrangement, an additional Sublease agreement may also be required. It is important for potential franchisees to carefully review all agreements with legal counsel to fully understand their obligations and rights.