For Churchs Chicken, what costs, liabilities, and expenses does the Developer assume responsibility for regarding the Franchised Restaurants?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Cajun may refuse to accept a site for a proposed Franchised Restaurant unless Developer demonstrates sufficient financial and operational capabilities, in Cajun's sole judgment to properly develop, operate and maintain the proposed Franchised Restaurant. To this end, Developer shall furnish Cajun with such financial statements and other information and documentation regarding Developer (or its Affiliated Entity) and the development and operation of the proposed Franchised Restaurant, including, without limitation, investment and financing plans for the proposed Franchised Restaurant, as Cajun reasonably may require.
- (3) Cajun's acceptance of one or more sites is not a representation, a warranty or a promise by Cajun that a Church's Restaurant at the Authorized Site will achieve a certain sales volume or a certain level of profitability.
Similarly, Cajun's acceptance of one or more sites and its rejection of other sites is not a representation, warranty or a promise that an Authorized Site will have a higher sales volume or be more profitable than a site which Cajun did not accept.
Cajun assumes no liability or responsibility for: (a) evaluation of an Authorized Site's soil for hazardous substances; (b) inspection of any structure on the Authorized Site for asbestos or other toxic or hazardous materials; (c) compliance with the Americans With Disabilities Act ("ADA"); or (d) compliance with any other applicable law.
It is Developer's sole responsibility to obtain satisfactory evidence and/or assurances that the Authorized Site (and any structures thereon) is free from environmental contamination and complies with the ADA and other applicable laws.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, the Developer bears significant responsibility for various aspects of the franchised restaurant, including environmental and legal compliance. Specifically, Churchs Chicken assumes no liability for the evaluation of a site's soil for hazardous substances, inspection of structures for asbestos or other toxic materials, compliance with the Americans with Disabilities Act (ADA), or compliance with any other applicable law. It is the Developer's sole responsibility to obtain satisfactory evidence that the site is free from environmental contamination and complies with the ADA and all other applicable laws. This indicates that the Developer must conduct thorough due diligence to ensure the site meets all legal and environmental standards.
Furthermore, Churchs Chicken may refuse to accept a site for a proposed franchised restaurant if the Developer cannot demonstrate sufficient financial and operational capabilities to properly develop, operate, and maintain the restaurant. The Developer must furnish Churchs Chicken with financial statements, investment and financing plans, and other relevant documentation as required. However, Churchs Chicken's acceptance of a site does not constitute a guarantee of sales volume or profitability. This underscores that the financial risk and operational success of the restaurant are primarily the Developer's responsibility.
In practical terms, a prospective Churchs Chicken developer should be prepared to cover the costs associated with environmental assessments, legal compliance, and demonstrating financial stability. They should also understand that Churchs Chicken's approval of a site does not guarantee financial success, and the ultimate responsibility for the restaurant's performance rests with the developer. This allocation of responsibility is fairly standard in the franchise industry, where franchisees or developers typically bear the costs and risks associated with site selection, development, and compliance, while the franchisor provides the brand, system, and support.