Does the Churchs Chicken Development Agreement prohibit Cajun from operating or licensing a restaurant outside the Development Area that is not identified by the Church's Chicken trademarks?

According to the 2025 Churchs Chicken Franchise Disclosure Document, the Development Agreement does not prohibit Cajun or its affiliates from operating or licensing a restaurant at any location outside the Development Area, provided it is not a restaurant identified by the Church's Chicken trademarks. Specifically, Cajun is permitted to operate or license restaurants outside the Development Area that are not branded as "Church's", "Church's Chicken" or "Church's Texas Chicken."

This clause ensures that Cajun, as the franchisor, retains the freedom to operate or license other restaurant concepts outside the designated Development Area without infringing on the developer's rights within that specific area. This allows Cajun to diversify its business interests and explore other restaurant ventures without being restricted by the Development Agreement.

For a prospective Churchs Chicken developer, this means that Cajun's activities outside their Development Area are not limited to the Churchs Chicken brand. Cajun could potentially introduce competing or complementary restaurant concepts in other locations, which may or may not impact the developer's business depending on market dynamics and consumer preferences. It is important for developers to understand this aspect of the agreement to fully assess the potential competitive landscape and growth opportunities within their designated area.