factual

What does the Development Agreement grant to a Churchs Chicken franchisee?

Churchs_Chicken Franchise · 2025 FDD

Answer from 2025 FDD Document

The Development Agreement grants you a specific Development Area in which to establish and operate Restaurants under the System at specific locations to be designated in separate Franchise Agreements. You select the site of your Restaurant subject to our acceptance of the site. You must submit for our acceptance a Site Acceptance Request, in the form that we require, for the proposed site of each Restaurant you develop. We will evaluate each proposed site, and within 60 days after receipt of your complete proposal, we will send you written notice of our acceptance or non-acceptance of the site. We consider the following factors, among others, in evaluating the proposed site: demographic characteristics (such as the number of households in the neighborhood, average income and family size); traffic patterns; proximity to existing restaurants, including existing Restaurants, and the size, asset type, and condition of the proposed premises. Our acceptance of a proposed site is good for 90 days, during which time you must provide us with satisfactory evidence (such as a deed or signed lease) that you have the right to occupy the site. Our acceptance of a site is not our representation or promise that a Restaurant at that site will achieve a certain sales volume or level of profitability. Similarly, our acceptance of one or more sites and our nonacceptance of other sites is not our representation or promise that a site we accept will have a higher sales volume or be more profitable than a site we do not accept. Our acceptance only indicates our willingness to be represented by you at that site. If you lease or sublease the premises, we have the right to review and approve the lease or sublease, and you must use our form of Addendum to Lease Agreement attached as Exhibit R.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 35–43)

What This Means (2025 FDD)

According to Churchs Chicken's 2025 Franchise Disclosure Document, the Development Agreement grants the franchisee a specific Development Area in which they can establish and operate restaurants under the Churchs Chicken system. These restaurants must be at specific locations that are designated in separate Franchise Agreements. The franchisee is responsible for selecting the site for their restaurant, but this selection is subject to Churchs Chicken's acceptance.

To gain site approval, the franchisee must submit a Site Acceptance Request in the required form. Churchs Chicken will then evaluate the proposed site, considering factors such as demographic characteristics, traffic patterns, proximity to existing restaurants (including other Churchs Chicken locations), and the size, asset type, and condition of the proposed premises. Churchs Chicken will provide written notice of acceptance or non-acceptance within 60 days of receiving the complete proposal.

It's important to note that Churchs Chicken's acceptance of a site does not guarantee any specific sales volume or level of profitability for the restaurant at that location. The acceptance only indicates Churchs Chicken's willingness to be represented by the franchisee at that site. If the franchisee plans to lease or sublease the premises, Churchs Chicken retains the right to review and approve the lease or sublease, and the franchisee must use Churchs Chicken's standard Addendum to Lease Agreement.

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.