Besides the Protected Area, does a Churchs Chicken franchisee receive an exclusive territory?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
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You are not granted the right under the Franchise Agreement to acquire additional franchises.
With the exception of the Protected Area, you will not receive an exclusive territory under the Franchise Agreement, and we may establish other franchised or company-owned Restaurants outside of the Protected Area that may compete with your Restaurant. We reserve the right to use channels of distribution other than restaurants identified as "Church's Chicken" or "Church's Texas Chicken" restaurants in your
Protected Area. We may also grant these rights to third parties. In addition, we reserve the right, and may grant to third parties the right, to sell Church's Chicken and Church's Texas Chicken products in the Protected Area in restaurants primarily identified by another trademark and in temporary facilities in conjunction with any cultural, sporting, recreational, or other events. We also have the right to make wholesale sales of products identified by the Church's Texas Chicken trademark within your Protected Area.
Except for the use of Texas Chicken internationally, we have not established, nor do we presently intend to establish, other franchises or company-owned outletsselling or leasing similar products orservices under a different trade name or trademark; however, we retain the right to do so.
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Except as described above, we and our affiliates may establish other franchised or company owned outlets under the Proprietary Marks and/or under other marks that may compete with your Restaurant and merchandise and distribute to any location (including within the Development Area or Protected Area) goods and services identified by the Proprietary Marks through other methods or channels of distribution (including the Internet). We do not compensate you for any orders that we solicit or accept from within the Development Area or Protected Area.
ITEM 13 TRADEMARKS
We grant you the right under the Franchise Agreement to operate the Restaurant under the System and the Proprietary Marks. You must use the Proprietary Marks only at the Restaurant and only in the way we specify in the Franchise Agreement, Manuals or otherwise in writing. If you use the Proprietary Marks in any other way, you may be in violation of the Franchise Agreement and you may also be infringing on our trademarks and service marks.
The Development Agreement does not grant any license to use the Proprietary Marks or System.
The Proprietary Marks are owned by our wholly-owned subsidiary Cajun Funding. Under a License Agreement with Cajun Funding, we have the right to use and license others to use the Proprietary Marks for a 99 year term.
Source: Item 12 — TERRITORY (FDD pages 43–45)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory beyond the Protected Area granted in the Franchise Agreement. The Protected Area is a geographic area where Churchs Chicken will not open or license another franchisee to open a Churchs Restaurant during the term of the Franchise Agreement. This area is typically the lesser of a 2-mile radius from the restaurant or an area encompassing a population of 50,000 people, but excludes existing restaurants, alternative venue locations like transportation facilities, stadiums, schools, and other similar venues.
Beyond the Protected Area, Churchs Chicken retains the right to establish other franchised or company-owned restaurants that may compete with a franchisee's restaurant. They also reserve the right to use other channels of distribution, and grant these rights to third parties, even within the Protected Area. These channels include selling Church's Chicken products in restaurants primarily identified by another trademark and in temporary facilities for events, as well as making wholesale sales of products within the Protected Area.
This means that while a Churchs Chicken franchisee has some limited protection in their immediate vicinity, they may face competition from other Churchs Chicken outlets or alternative distribution channels outside of this area. Additionally, Churchs Chicken can sell its products through other venues, even within the franchisee's Protected Area. This lack of broader territorial exclusivity is a common practice in franchising, as franchisors often seek to maximize market penetration and brand presence.
Prospective franchisees should be aware that Churchs Chicken does not compensate them for orders solicited or accepted from within the Development Area or Protected Area by the franchisor or its affiliates. This could impact a franchisee's revenue potential if Churchs Chicken actively pursues sales through other channels in the same market. Franchisees should carefully consider the potential for competition from other Churchs Chicken outlets and alternative distribution channels when evaluating the franchise opportunity.