What is a condition that would prevent a Churchs Chicken Developer from opening a franchised restaurant related to defaults with Cajun or its affiliates?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- **C.
Conditions to Opening.** Developer shall not open a Franchised Restaurant unless all of the following conditions have been met:
- (1) Developer and its affiliates are not in default under this Agreement or any other agreements with Cajun or its affiliates; Developer and its affiliates are not in default beyond the applicable cure period under any real estate lease, equipment lease or financing instrument relating to the Franchised Restaurant; Developer and its affiliates are not in default beyond the applicable cure period with any vendor or supplier to the Franchised Restaurant; and for the previous six months prior to the proposed opening of the Franchised Restaurant, Developer and its affiliates have not been in default beyond the applicable cure period under any agreement with Cajun or its affiliates.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, a Churchs Chicken Developer will not be allowed to open a franchised restaurant if they or their affiliates are in default under any agreements with Cajun or its affiliates. This also applies if they have been in default beyond the applicable cure period under any agreements with Cajun or its affiliates within the six months leading up to the proposed opening.
This condition ensures that developers maintain good standing with the franchisor and its related entities. It protects Churchs Chicken's interests by preventing developers with a history of non-compliance or financial instability from opening new locations. The "cure period" refers to a specific timeframe allowed to correct a default before further action is taken.
For a prospective Churchs Chicken developer, this means maintaining diligent compliance with all contractual obligations, including timely payments and adherence to operational standards. Failure to do so could not only jeopardize the opening of a specific restaurant but also impact the developer's broader development agreement with Churchs Chicken. This requirement is fairly standard in franchising, as franchisors need to protect their brand and ensure all franchisees are meeting their obligations.