When is the development fee for a Churchs Chicken franchise due?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. In addition to the Development Fee required by Section 4, Developer shall pay Cajun an initial franchise fee ("Initial Franchise Fee") for each Franchised Restaurant to be developed under this Agreement in the amount set forth in Schedule 2. The Initial Franchise Fee is payable upon execution of the Franchise Agreement for each Franchised Restaurant. Developer acknowledges and agrees that the Initial Franchise Fee is fully earned by Cajun when paid, and it is not refundable.
- D. Cajun may, in its sole discretion, grant Developer one or more extensions to the Development Schedule ("Development Schedule Extension"), provided that Developer shall pay Cajun a fee ("Development Schedule Extension Fee") in an amount not to exceed $5,000 for each Development Schedule Extension of five months duration or less. Cajun reserves the right to deny the granting of any Development Schedule Extension for any reason. If the Development Schedule Extension is an extension to the Opening Date and Developer opens the Franchised Restaurant during that extension period, then the Development Schedule Extension Fee will be credited toward the Initial Franchise Fee for the Franchised If Developer executes an agreement with Cajun in conjunction with the acquisition of existing Church's Texas Chicken restaurants from another Church's Texas Chicken franchisee, Cajun has the option, in its sole discretion, to offer, or not to offer, the Platinum Incentive Plan Incentives to Developer.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, in addition to the development fee, an initial franchise fee is required for each restaurant to be developed. This initial franchise fee is payable upon the execution of the Franchise Agreement for each franchised restaurant. Churchs Chicken clarifies that this fee is fully earned when paid and is non-refundable.
For developers who execute an agreement with Churchs Chicken in conjunction with acquiring existing restaurants from another franchisee, Churchs Chicken has the option to offer the Platinum Incentive Plan.
Furthermore, Churchs Chicken may grant developers an extension to the Development Schedule, but this is at their sole discretion. If granted, a fee not exceeding $5,000 may be charged for each extension of five months or less. If the extension applies to the opening date and the restaurant opens during the extension, this fee can be credited towards the Initial Franchise Fee.