What claims did Royal Texas assert against Churchs Chicken in the Georgia Action?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
as Federal Action currently remains stayed.
Royal Texas, LLC v. Cajun Global, LLC, Cajun Operating, LLC and High Bluff Capital Partners, LLC¸ Case No. 2022CV362893 (Fulton County, Georgia Superior Court) (the "Georgia Action"). On March 31, 2022, Royal Texas filed an action against us, our affiliate Cajun Operating, LLC, and our private equity ownership, High Bluff Capital Partners, LLC in Georgia (the "Georgia Action"). In the Georgia Action, Royal Texas asserted that we breached the parties' franchise agreements and the implied covenant of good faith and fair dealing by: (1) failing to offer Royal Texas renewal terms; (2) terminating the franchise agreements for allegedly pretextual reasons; and (3) allegedly failing to provide local marketing. Royal Texas also asserted claims for an accounting of Cajun Operating's Purchasing Group Fund, for business defamation, and for recovery of its attorneys' fees. The complaint did not make a demand for specific damages but alleges damages in excess of $50,000,000. We answered and filed counterclaims for breach of promissory note, statutory trademark infringement, statutory unfair competition, statutory
trademark or tradename infringement/unfair competition, common law unfair competition, civil theft, civil RICO, unjust enrichment, fraudulent inducement, fraudulent misrepresentation and concealment, and negligent misrepresentation. High Bluff filed a motion to dismiss, which was denied on May 12, 2023. We filed a motion to add BAH Texas, LLC and David Davoudpour as defendants, which was also denied on May 12, 2023. Non-expert discovery has closed. Both parties have designated experts and provided
Source: Item 3 — LITIGATION (FDD pages 14–16)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, Royal Texas, LLC filed an action against Churchs Chicken, its affiliate Cajun Operating, LLC, and its private equity ownership, High Bluff Capital Partners, LLC in Georgia. This action is referenced as the "Georgia Action." Royal Texas asserted several claims against Churchs Chicken, alleging breaches of the franchise agreements and the implied covenant of good faith and fair dealing.
The specific claims made by Royal Texas include: (1) Churchs Chicken failed to offer Royal Texas renewal terms for their franchise agreements; (2) Churchs Chicken terminated the franchise agreements for allegedly pretextual reasons; and (3) Churchs Chicken allegedly failed to provide local marketing support as required by the agreements. In addition to these claims, Royal Texas also sought an accounting of Cajun Operating's Purchasing Group Fund, asserted a claim for business defamation, and sought recovery of its attorneys' fees.
The complaint filed by Royal Texas did not specify a precise amount of damages but alleged damages exceeding $50,000,000. Churchs Chicken responded by answering the complaint and filing counterclaims against Royal Texas. These counterclaims included breach of promissory note, statutory trademark infringement, statutory unfair competition, trademark or tradename infringement/unfair competition, common law unfair competition, civil theft, civil RICO, unjust enrichment, fraudulent inducement, fraudulent misrepresentation and concealment, and negligent misrepresentation. The litigation was ongoing as of the date of the FDD.