In the context of injunctive relief for a Churchs Chicken franchise, who determines if a bond is required?

According to the 2025 Churchs Chicken Franchise Disclosure Document, a court will determine if a bond is required should Cajun, the parent company, seek injunctive relief. This means that if Churchs Chicken seeks a court order to compel a franchisee to take certain actions or prevent them from doing something, the court will decide whether the franchisee needs to provide a financial guarantee (a bond).

In practical terms, this implies that a Churchs Chicken franchisee might need to obtain a surety bond if the franchisor pursues injunctive relief against them. The purpose of the bond is to protect the franchisee in case the injunction is later found to be unjustified. The franchisee would need to budget for the cost of this bond, which can vary depending on the bond amount set by the court and the franchisee's financial situation.

It is important for prospective Churchs Chicken franchisees to understand that the requirement for a bond is not automatic. It is up to the court to decide, based on the specific circumstances of the case. Franchisees should consult with legal counsel to understand their rights and obligations in the event that Churchs Chicken seeks injunctive relief and a bond is being considered.