Does Cajun (Churchs Chicken) have the right to delegate its obligations under the agreement?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Under a management agreement ("Management Agreement") between Cajun and Cajun Operating Company ("Cajun Operating"), Cajun Operating Company will, at all times acting on behalf of Cajun, fulfill all of Cajun's duties and obligations under this Agreement.
Cajun Operating employs all the persons who will provide services to Franchisee on Cajun's behalf under the terms of this Agreement.
If Cajun Operating fails to perform its obligations under the Management Agreement, then Cajun may replace Cajun Operating as the franchise service provider.
However, as the franchisor, Cajun will always be responsible for fulfilling all of its duties and obligations under this Agreement.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, Cajun Operating Company will fulfill all of Cajun's duties and obligations under the agreement, acting on Cajun's behalf, under a management agreement between Cajun and Cajun Operating Company. Cajun Operating employs all the people who will provide services to the franchisee on Cajun's behalf under the terms of the agreement.
However, if Cajun Operating fails to perform its obligations under the Management Agreement, Cajun may replace Cajun Operating as the franchise service provider. Despite this delegation of duties to Cajun Operating, the FDD states that Cajun, as the franchisor, will always be responsible for fulfilling all of its duties and obligations under the agreement.
This means that while Churchs Chicken uses Cajun Operating to manage many of the day-to-day interactions with franchisees, Churchs Chicken remains ultimately liable for ensuring all obligations to the franchisee are met. This setup is fairly common in franchising, where a parent company may use a subsidiary to handle specific operational aspects while retaining overall responsibility for the franchise system.