Does the Churchs Chicken Development Agreement grant any options to acquire additional franchises inside or outside the Development Area?

According to Churchs Chicken's 2025 Franchise Disclosure Document, the standard Development Agreement does not grant any options, rights of first refusal, or similar rights to acquire additional franchises inside or outside the Development Area. The Development Agreement grants the developer the right and obligation to develop an agreed-on number of Restaurants in their Development Area according to an agreed-on Development Schedule.

Churchs Chicken may offer an amendment to the Development Agreement that provides limited territorial exclusivity, called an "Exclusive Development Agreement", which is negotiated between Churchs Chicken and the developer based on the developer's capabilities and Churchs Chicken's market development objectives. If a developer signs an Exclusive Development Agreement, they will be granted a geographic area within which Churchs Chicken will not open a Restaurant, nor license anyone other than the developer to open a Restaurant, subject to the other terms of the Agreement.

However, this exclusive development area does not include airports, train stations, bus stations, travel plazas, stadiums, arenas, convention centers, military facilities, schools, colleges, universities, hospitals, recreational theme parks, business or industrial foodservice venues, food courts, enclosed shopping malls and retail centers, venues in which foodservice is or may be provided by a master concessionaire or contract foodservice provider, Indian reservations, casinos or any similar captive market location, even if these locations are located in the Development Area. If the developer fails to comply with their Development Schedule, Churchs Chicken may terminate the Development Agreement.

Prospective franchisees should note that Churchs Chicken will not refund the Development Fee if the developer fails to comply with the Development Schedule. Churchs Chicken may, in its discretion, take action short of termination, including termination of some but not all of the developer's development options, or, if the developer has an Exclusive Development Agreement, termination of their limited territorial exclusivity.