Can Cajun acquire a restaurant chain that competes with Churchs Chicken within the Protected Area?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
A. Cajun reservesthe rightsto: (a) operate and license othersto operate restaurants identified in whole or in part by the names and marks "Church's", "Church's Chicken" and/or "Church's Texas Chicken" in the Development Area that are located in airports, train stations, bus stations, travel plazas, stadiums, arenas, convention centers, military facilities, schools, colleges, universities, hospitals, recreational theme parks, business or industrial foodservice venues, food courts, enclosed shopping malls and retail centers, venues in which foodservice is or may be provided by a master concessionaire or contract foodservice provider, Indian reservations, casinos or any similar captive market location; (b) award national or regional licenses to third parties to sell products under the names and marks "Church's", "Church's Chicken" and "Church's Texas Chicken" in foodservice facilities primarily identified by the third party's trademark; (c) develop and operate, and license others to develop and operate, restaurants other than restaurants identified in whole or in part by the names and marks "Church's", "Church's Chicken" and "Church's Texas Chicken" in the Development Area; (d) acquire or be acquired by a restaurant chain or system that operates and/or franchises restaurants in the Development Area that are the same as, similar to or compete with Church's Texas Chicken Restaurants in that they have a substantially similar menu or similar theme
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, Cajun, as the franchisor, has the right to acquire a restaurant chain or system that competes with Churchs Chicken restaurants within the Development Area. This includes chains with substantially similar menus, themes, or concepts.
This clause means that even with a franchise agreement, Churchs Chicken retains the ability to purchase or merge with competing restaurant chains within the franchisee's development area. This could potentially increase competition for the franchisee.
Prospective franchisees should be aware of this clause as it could impact their business. While Churchs Chicken grants development rights, it also reserves significant latitude to alter the competitive landscape through acquisitions. Franchisees should carefully consider the potential impact of such acquisitions on their investment and market share.