factual

Who determines the timeline for remodeling a transferred Churchs Chicken restaurant, and what might be required?

Churchs_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

rant (including, but not limited to, bills from suppliers, taxes, judgments and any required governmental reports, returns, affidavits or bonds) have been satisfied or, in the reasonable judgment of Cajun, adequately provided for. Cajun reserves the right to require that a reasonable sum of money be placed in escrow to ensure that all of these obligations are satisfied.

  • (3) Franchisee is not then in material default of any provision of this Agreement or any other agreement between Franchisee and Cajun or its affiliates and is not in default beyond the applicable cure period under any real estate lease, equipment lease or financing instrument relating to the Franchised Restaurant.
  • (4) Unless waived by Cajun in its sole discretion, the transferee and those employees of the transferee designated by Cajun shall complete the NFOP (if it has not previously done so), the MIT Program, and any additional training programs required by Cajun.
  • (5) If the Franchised Restaurant has not been remodeled in accordance with Section 10.F.(2) within 7 years before the date of Transfer, the transferee shall make, or make arrangements to make, the capital expenditures required to renovate and modernize the Franchised Restaurant to conform to the interior and exterior designs, décor, color schemes, furnishings and equipment and presentation of the Proprietary Marks consistent with the image of the System for new Church's Restaurants at the time of the Transfer, including such structural changes, remodeling, redecoration and modifications to existing improvements as may be necessary to do so. Cajun may require that the transferee place funds into escrow and execute a separate agreement with Cajun setting forth a timeline to complete such remodeling.
  • (6) Franchisee shall perform all deferred repair and maintenance work ("R&M") on the Franchised Restaurant prior to the Transfer or transferee shall agree to perform all R&M within a period of time after closing specified by Cajun.
  • (7) Unless waived by Cajun in its sole discretion, Franchisee shall provide such financial and other information as Cajun may request regarding Franchisee and the Franchised Restaurant, and if requested by Cajun, Franchisee at its own expense shall engage a contractor designated by Cajun to conduct a valuation of Franchisee and the Franchised Restaurant.
  • C. Conditions to Obtaining Cajun's Consent to Complete Transfer. If Cajun approves a proposed Transfer, prior to the Transfer becoming effective:
  • (1) Franchisee shall pay Cajun a nonrefundable Transfer fee in the amount of $10,000 in connection with Cajun's review of the Transfer application.
  • (2) At Cajun's election, either (a) Franchisee and the proposed transferee shall execute an assignment of this Agreement; or (b) the proposed transferee shall execute Cajun's then-current standard form of franchise agreement (which may contain new or different terms than this Agreement) for an initial term corresponding to the number of years remaining under this Agreement at the time of the Transfer.

Source: Item 23 — RECEIPT (FDD pages 68–406)

What This Means (2025 FDD)

According to Churchs Chicken's 2025 Franchise Disclosure Document, Cajun Global LLC (referred to as Cajun) determines the timeline for remodeling a transferred Churchs Chicken restaurant. If the restaurant hasn't been remodeled within seven years before the transfer date, the new franchisee (transferee) must renovate it to match the current image of new Churchs Chicken restaurants.

Cajun has the authority to require the transferee to place funds into escrow and sign a separate agreement that outlines the timeline for completing the remodeling. Additionally, Cajun specifies the timeframe for the transferee to complete any deferred repair and maintenance work on the restaurant after the transfer is finalized.

Furthermore, Churchs Chicken franchisees must modernize their restaurants to conform to the brand's image within a timeframe set by Cajun. Franchisees are generally required to renovate every 7 years, but this can vary based on previous system-wide deadlines. Within 60 days of receiving notice from Cajun, the franchisee must submit renovation plans for approval before starting any work. These renovations may include changes to building design, parking lots, landscaping, equipment, signage and interior/exterior decor.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.