What is the current status of discovery in the Georgia Action involving Churchs Chicken?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
as Federal Action currently remains stayed.
Royal Texas, LLC v. Cajun Global, LLC, Cajun Operating, LLC and High Bluff Capital Partners, LLC¸ Case No. 2022CV362893 (Fulton County, Georgia Superior Court) (the "Georgia Action"). On March 31, 2022, Royal Texas filed an action against us, our affiliate Cajun Operating, LLC, and our private equity ownership, High Bluff Capital Partners, LLC in Georgia (the "Georgia Action"). In the Georgia Action, Royal Texas asserted that we breached the parties' franchise agreements and the implied covenant of good faith and fair dealing by: (1) failing to offer Royal Texas renewal terms; (2) terminating the franchise agreements for allegedly pretextual reasons; and (3) allegedly failing to provide local marketing. Royal Texas also asserted claims for an accounting of Cajun Operating's Purchasing Group Fund, for business defamation, and for recovery of its attorneys' fees. The complaint did not make a demand for specific damages but alleges damages in excess of $50,000,000. We answered and filed counterclaims for breach of promissory note, statutory trademark infringement, statutory unfair competition, statutory
trademark or tradename infringement/unfair competition, common law unfair competition, civil theft, civil RICO, unjust enrichment, fraudulent inducement, fraudulent misrepresentation and concealment, and negligent misrepresentation. High Bluff filed a motion to dismiss, which was denied on May 12, 2023. We filed a motion to add BAH Texas, LLC and David Davoudpour as defendants, which was also denied on May 12, 2023. Non-expert discovery has closed. Both parties have designated experts and provided expert reports. This matter remains pending.
Store Master Funding XXIX, LLC v.
Source: Item 3 — LITIGATION (FDD pages 14–16)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, as of the document's publication, the Royal Texas, LLC v. Cajun Global, LLC, et al. case (the "Georgia Action") is still pending. This case, filed on March 31, 2022, involves claims by Royal Texas against Churchs Chicken, its affiliate Cajun Operating, LLC, and its private equity ownership, High Bluff Capital Partners, LLC, alleging breach of contract and the implied covenant of good faith and fair dealing. Royal Texas also asserts claims for an accounting of Cajun Operating's Purchasing Group Fund, for business defamation, and for recovery of its attorneys' fees, with alleged damages exceeding $50,000,000.
Churchs Chicken has answered and filed counterclaims for breach of promissory note, statutory trademark infringement, statutory unfair competition, statutory trademark or tradename infringement/unfair competition, common law unfair competition, civil theft, civil RICO, unjust enrichment, fraudulent inducement, fraudulent misrepresentation and concealment, and negligent misrepresentation. High Bluff's motion to dismiss was denied on May 12, 2023, as was Churchs Chicken's motion to add BAH Texas, LLC and David Davoudpour as defendants.
The document indicates that non-expert discovery has closed in the Georgia Action. Both parties have designated experts and provided expert reports. This means that the initial phase of gathering evidence from non-expert witnesses is complete, and the parties are now relying on expert opinions to support their respective cases. The fact that the case remains pending suggests that it could proceed to trial or further settlement negotiations. A prospective franchisee should be aware that litigation can be lengthy and costly, and the outcome is uncertain.