What condition must a Churchs Chicken franchisee meet to be eligible for an extension period?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
(2) In order for Franchisee to be eligible to renew the Franchise for the Renewal Term, Franchisee must meet all of the following conditions prior to and at the end of the Initial Term:
(a) Franchisee shall not be in default under this Agreement or any other agreements between Franchisee and Cajun or its affiliates and, for the 12 months prior to the date of Franchisee's notice and the 12 months prior to the expiration of the Initial Term, Franchisee shall not have been in default beyond the applicable cure period under this Agreement or any other agreements between Franchisee and Cajun or its affiliates throughout the Initial Term; Franchisee shall not be in default beyond the applicable cure period under any real estate lease, equipment lease or financing instrument relating to the Franchised Restaurant; and Franchisee shall not be in default beyond the applicable cure period with any vendor or supplier to the Franchised Restaurant.
(b) Franchisee shall, at its expense, make the capital expenditures required to renovate and modernize the Franchised Restaurant to conform to the interior and exterior designs, décor, color schemes, furnishings and equipment and presentation of the Proprietary Marks consistent with the image of the System for new Church's Restaurants at the time Franchisee provides Cajun the renewal notice, including such structural changes, remodeling, redecoration and modifications to existing improvements as may be necessary to do so.
(c) Franchisee and its employees at the Franchised Restaurant shall be in compliance with Cajun's then-current training requirements, including all continuing education certificate requirements.
(d) Franchisee must have the right to remain in possession of the Franchised Location, or other premises acceptable to Cajun, for the Renewal Term and all monetary obligations owed to Franchisee's landlord, if any, or mortgagor, if any, must be current.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, a franchisee must meet several conditions to be eligible to renew their franchise for an additional term. These conditions must be met both prior to and at the end of the initial franchise term.
First, the franchisee must not be in default of the franchise agreement or any other agreements with Churchs Chicken or its affiliates. Furthermore, for the 12 months leading up to both the renewal notice and the expiration of the initial term, the franchisee must not have been in default beyond any applicable cure period. This requirement extends to real estate leases, equipment leases, financing instruments related to the franchised restaurant, and agreements with vendors or suppliers.
Second, the franchisee is responsible for capital expenditures necessary to renovate and modernize the restaurant to meet the current image standards for new Churchs Chicken restaurants. This includes interior and exterior designs, décor, color schemes, furnishings, equipment, and the presentation of proprietary marks. These renovations may involve structural changes, remodeling, redecoration, and modifications to existing improvements.
Third, the franchisee and their employees must comply with Churchs Chicken's then-current training requirements, including all continuing education certificate requirements. Finally, the franchisee must have the right to remain in possession of the franchised location (or another location acceptable to Churchs Chicken) for the renewal term, and all monetary obligations to the landlord or mortgagor must be current.