What are the conditions that must be met before a Churchs Chicken developer begins construction of a Franchised Restaurant to avoid termination?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
(1) Developer shall not begin site preparation or construction of a Franchised Restaurant until (a) Cajun has accepted the site for the Franchised Restaurant; (b) Developer has received notification from Cajun that it has accepted the Construction Plans for the Franchised Restaurant; (c) Developer has provided Cajun a copy of the fully-executed lease or sublease for the Franchised Restaurant premises or, if Developer owns the premises, proof of Developer's ownership interest; (d) Developer has procured the insurance coverage required by Section 8; and (e) if the Franchised Restaurant is the second Franchised Restaurant to be developed by Developer, Developer has established its first Franchised Restaurant as a Certified Training Restaurant as described in Section 7.D.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, a developer must meet several conditions before starting site preparation or construction to avoid potential issues. Churchs Chicken must first accept the proposed site for the franchised restaurant. Following site acceptance, Churchs Chicken must provide notification that it has accepted the Construction Plans for the restaurant. The developer needs to furnish a copy of the fully-executed lease or sublease for the premises, or proof of ownership if the developer owns the property.
Furthermore, the developer is required to secure the insurance coverage as mandated by Section 8 of the agreement. If the restaurant is the second one to be developed by the developer, the first restaurant must be established as a Certified Training Restaurant as described in Section 7.D. Meeting these conditions is crucial, as failure to do so could lead to delays or even termination of the agreement.
It is important for prospective Churchs Chicken franchisees to carefully review Section 8 and Section 7.D to fully understand the insurance requirements and the criteria for establishing a Certified Training Restaurant. Paying close attention to these prerequisites will help ensure a smooth construction process and avoid any potential breaches of the development agreement.