How must Cajun pay for the Churchs Chicken franchise assets at the closing of the purchase?

According to Churchs Chicken's 2025 Franchise Disclosure Document, when Cajun exercises its option to purchase the assets of a Churchs Chicken franchise, the purchase price must be paid in cash or cash equivalents at the closing. The closing must occur no later than 60 days after the date of Cajun's Purchase Notice, which is the written notification to the franchisee that Cajun is exercising its option to purchase the assets.

This means that a franchisee selling their assets back to Churchs Chicken will receive the payment in the form of cash or something easily convertible to cash at the time the sale is finalized. This provides clarity and certainty in the transaction, ensuring the franchisee receives readily available funds upon completion of the sale.

It is important to note that Cajun has a Due Diligence Period of 30 days after the Purchase Price has been determined to investigate the assets. This includes assessing ownership, condition, liens, environmental compliance, and contract validity. This due diligence period allows Cajun to ensure the assets meet their standards before finalizing the purchase. Additionally, Cajun has the option to close the Franchised Restaurant after the Purchase Notice without removing any Assets from the Franchised Restaurant.