What is the condition for Churchs Chicken to sign an Amendment to the Development Agreement?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to a Franchise Agreement, you must sign a Development Agreement regardless of the number of Restaurants you commit to develop. A copy of our standard Development Agreement is attached as Exhibit G. Under the Development Agreement, you are granted the right and you accept the responsibility to develop a specific number of Restaurants in a specific geographic area (the "Development Area"). In some instances, we will sign an Amendment to the Development Agreement which provides limited exclusivity for the Development Area. A copy of our standard Amendment to Development Agreement is attached as Exhibit H. The Development Agreement also specifies the number of Restaurants that you must open and operate and the dates by which they must open and be in operation in a development schedule (the "Development Schedule") to the Development Agreement.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–10)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, a franchisee must sign a Development Agreement regardless of the number of restaurants they commit to develop. The Development Agreement grants the franchisee the right and responsibility to develop a specific number of restaurants in a defined geographic area, known as the "Development Area." Churchs Chicken may sign an Amendment to the Development Agreement, which provides limited exclusivity for the Development Area. The Development Agreement also specifies the number of restaurants that the franchisee must open and operate, along with the dates by which they must be operational, as outlined in the Development Schedule.
This means that while a Development Agreement is always required, an Amendment to that agreement, offering limited exclusivity, is not guaranteed. It is at Churchs Chicken's discretion. The Development Agreement is crucial as it sets the terms for the number of restaurants, the geographic area, and the timeline for development.
Prospective franchisees should carefully review the standard Development Agreement and Amendment to Development Agreement (Exhibits G and H) to understand their obligations and the extent of any exclusivity they might receive. It is important to discuss the conditions under which Churchs Chicken will grant an Amendment and what factors influence their decision. Understanding these conditions is vital for planning and securing financing for the development schedule.