Do Churchs Chicken company-owned restaurants contribute to the advertising fund?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
t (determined on a first-in, first-out basis) or net realizable value.
Advertising Funds
'The Company's franchise agreements for all restaurants owned by the Parent, the Company, domestic franchisees, and certain international franchisees, including all franchisees in Puerto Rico, require participation and contributions of a percentage of their gross sales to an advertising fund administered by Church's Chicken Advertising Fund (the Fund).
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 35–43)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, company-owned restaurants also contribute to the advertising fund. The franchise agreements for all restaurants owned by the Parent, the Company, domestic franchisees, and certain international franchisees, including all franchisees in Puerto Rico, require participation and contributions to the advertising fund. Company-owned restaurants contribute to the Ad Fund on the same basis as franchisees. However, there is an exception where company-owned restaurants might contribute a greater percentage of Gross Sales than franchisees.
This means that company-owned stores are held to the same standard as franchised locations regarding advertising contributions, ensuring a unified approach to marketing efforts. This policy aims to create a level playing field where all restaurants, regardless of ownership, support the brand's advertising initiatives. The advertising fund is used to pay the costs of maintaining, administering, directing and preparing market research, advertising and/or promotional activities.
For a prospective franchisee, this indicates that Churchs Chicken is invested in system-wide advertising and that company-owned stores share in the financial responsibility for these activities. The franchisee should inquire about the specific instances where company-owned stores might contribute a higher percentage to understand the full scope of this policy and its potential impact on the advertising fund's resources.