What does the Churchs Chicken Development Agreement specify regarding restaurant openings?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to a Franchise Agreement, you must sign a Development Agreement regardless of the number of Restaurants you commit to develop. A copy of our standard Development Agreement is attached as Exhibit G. Under the Development Agreement, you are granted the right and you accept the responsibility to develop a specific number of Restaurants in a specific geographic area (the "Development Area"). In some instances, we will sign an Amendment to the Development Agreement which provides limited exclusivity for the Development Area. A copy of our standard Amendment to Development Agreement is attached as Exhibit H. The Development Agreement also specifies the number of Restaurants that you must open and operate and the dates by which they must open and be in operation in a development schedule (the "Development Schedule") to the Development Agreement.
Source: Item 1 — THE FRANCHISOR AND ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 7–10)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, a Development Agreement is required regardless of the number of restaurants a franchisee commits to develop. This agreement grants the franchisee the right and responsibility to develop a specific number of Churchs Chicken restaurants within a defined geographic area, known as the "Development Area." In some cases, an amendment to the Development Agreement may provide limited exclusivity for this area.
The Development Agreement also outlines a "Development Schedule," which specifies the number of Churchs Chicken restaurants the franchisee must open and operate, along with the dates by which these restaurants must be operational. This schedule is a critical component of the agreement, setting clear expectations for the pace of development.
Prospective Churchs Chicken franchisees should carefully review the Development Agreement and its schedule to fully understand their obligations. They should also inquire about the possibility of obtaining limited exclusivity for their Development Area, as this could significantly impact their competitive landscape and potential profitability.