Are the costs paid to Churchs Chicken as part of the initial investment refundable?

According to Churchs Chicken's 2025 Franchise Disclosure Document, all costs paid directly to Churchs Chicken are non-refundable. This includes the $15,500 to $25,000 paid for Grand Opening Funds. These funds are used to cover the cost of design and placement of all creative materials for the Grand Opening Advertising Campaign, which begins no earlier than the restaurant opens and ends no later than 90 days after opening. Once paid, these Grand Opening Funds are considered fully earned by Churchs Chicken and are not refundable. However, upon request after the campaign, Churchs Chicken will provide written proof that the funds were spent entirely.

This non-refundable policy is a standard practice in franchising, as these fees cover Churchs Chicken's initial costs in setting up the franchise. While the initial franchise fee and development fee are non-refundable, other costs within the initial investment, such as those paid to third-party vendors for site work, building improvements, equipment, and insurance, may be subject to the vendor's refund policies. It is important for prospective franchisees to understand this distinction and factor it into their financial planning.

Prospective franchisees should carefully consider the implications of this non-refundable policy. While Churchs Chicken commits to providing proof of expenditure for the Grand Opening Funds, franchisees should ensure they are comfortable with the planned marketing strategy and budget allocation before signing the Franchise Agreement. Understanding which fees are paid to Churchs Chicken versus third-party vendors is crucial for managing financial risk during the initial investment phase. Franchisees should also inquire about the specific conditions under which third-party payments might be refundable, as these will vary depending on the vendor and the services provided.