Does Churchs Chicken currently require franchisees to buy or lease goods or services directly from them?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not currently require you to buy or lease any goods or services from us, or suppliers we designate, except as described above.
We do not confer special or other material benefits on franchisees that buy or lease from approved suppliers or sources.
We do not currently require you to buy or lease goods orservicesfrom us, nor do we or our affiliates presently supply or offer to sell or lease goods or services to our franchisees. We do not derive income from sales made by designated or approved suppliers or distributors to our franchisees (however, the distributors collect a surcharge on certain products to fund Church's Holding's Supply Chain Department, as described above). There are currently no purchasing or distribution cooperatives.
You must purchase all items (except for Trade Secret Products, Proprietary Products, and items that you must purchase from designated suppliers) needed to operate the Restaurant (such as french fries, flour, food trays, paperwares, etc.) only from suppliers and distributors who demonstrate, to our continuing and reasonable satisfaction, the ability to meet our reasonable standards for those items; who possess adequate quality controls and capacity to supply your needs promptly and reliably; and as to whom we have given (and not revoked) our written approval.
To operate the Restaurant, you must use certain items that incorporate our trade secrets ("Trade Secret Products"). Trade Secret Products include ingredients, products, materials, supplies and other items. Trade Secret Products include our fried chicken batters and seasonings and certain other food products and recipes (including fried okra batter and breading; boneless wing seasonings, batters, and breading; marinated chicken strips, honey butter, biscuit topping and mix, macaroni and cheese, mashed potatoes, fried apple pies, jalapeno cheese bombers, and various other seasonings and sauces). You must buy Trade Secret Products only from suppliers that we designate.
Certain products bear our Proprietary Marks and are made to our specifications by approved manufacturers ("Proprietary Products"). You must buy Proprietary Products only from manufacturers we approve in writing. Examples of Proprietary Products include certain uniforms, signs, menu boards, paper goods and packaging.
We require you to obtain, install and use point-of-sale equipment, software, back-office computer systems and credit card processing (collectively, "POS System") from our approved suppliers, which are currently SynergySuite and QuBeyond. The POS System must be installed by an approved vendor, which is currently HonorBuilt.
We also require you to obtain, install and use DT timers and associated hardware and software (collectively "DT Timers") that we specify in writing. We currently have preferred vendors that limit your choice of DT Timers. Depending on the number of drive-thru lanes at your Restaurant, we may require you to have additional DT Timers.
Under the Franchise Agreement, we may designate an exclusive beverage supplier or suppliers for beverage products sold within the System ("Designated Beverage Supplier"). After 30 days' notice to you of our appointment of a Designated Beverage Supplier, you must purchase all designated beverage items only from the Designated Beverage Supplier.
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 31–34)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, franchisees are not required to buy or lease goods or services directly from Churchs Chicken. However, franchisees are required to purchase certain items from approved or designated suppliers. These include Trade Secret Products, Proprietary Products, items needed to operate the Restaurant, and potentially beverage products from a Designated Beverage Supplier.
Trade Secret Products, such as fried chicken batters and seasonings, must be purchased only from suppliers that Churchs Chicken designates. Proprietary Products, which bear Churchs Chicken's Proprietary Marks, must be bought only from manufacturers Churchs Chicken approves in writing. Examples of Proprietary Products include certain uniforms, signs, menu boards, paper goods, and packaging.
Franchisees must also participate in Churchs Holding's Supply Chain Department, which negotiates with vendors and suppliers. The Supply Chain Department passes its costs to the System through surcharges on certain products. Additionally, franchisees must use point-of-sale equipment, software, back-office computer systems, and credit card processing from approved suppliers. They must also use DT timers and associated hardware and software that Churchs Chicken specifies in writing.
While Churchs Chicken does not mandate direct purchases from them, the restrictions on sourcing from approved or designated suppliers mean that a significant portion (estimated at 99%) of a franchisee's purchases and leases will be dictated by Churchs Chicken's approved vendor list. Franchisees need to be aware of these requirements and the associated costs when evaluating the franchise opportunity.