What capital expenditures are required for a Churchs Chicken franchisee to renovate and modernize the Franchised Restaurant as a condition of renewal?

According to Churchs Chicken's 2025 Franchise Disclosure Document, a franchisee must make capital expenditures to renovate and modernize their restaurant as a condition of renewing their franchise agreement. Specifically, the franchisee is responsible for conforming the restaurant to the current image of new Churchs Chicken restaurants at the time of renewal. This includes interior and exterior designs, décor, color schemes, furnishings, equipment, and the presentation of proprietary marks.

The renovations may involve structural changes, remodeling, redecoration, and modifications to existing improvements. This ensures that the restaurant aligns with the brand's current standards and specifications.

Churchs Chicken also requires franchisees to maintain the restaurant in first-class condition, including furniture, fixtures, equipment, signage, and the building's interior and exterior. This ongoing upkeep includes remodeling, redecorating, refurbishing, and necessary repairs, such as painting, parking lot resurfacing, roof repairs, and replacement of worn-out items. A full reimaging, renovation, and refurbishment is required to modernize the restaurant to the image of the Church's system for new restaurants within a specified timeframe, generally not more often than once every 7 years, unless there is less than 5 years remaining on the Initial Term (unless Franchisee plans to exercise its renewal option) or any Renewal Term.