Is the Development Fee for a Churchs Chicken restaurant in addition to the Initial Franchise Fee?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
sclosed in this Item.
ITEM 5 INITIAL FEES
Development Fee. You must sign a Development Agreement regardless of the total number of Restaurants you commit to develop. You must pay a development fee ("Development Fee") for each Restaurant to be developed under the same Development Agreement when you sign the Development Agreement. The Development Fee is $10,000 per Restaurant you agree to develop under the Development Agreement. During fiscal year 2024, the Development Fees ranged from $5,000 to $10,000 per Restaurant.
Initial Franchise Fee. The initial franchise fee ("Franchise Fee") is $20,000 for each Restaurant. You must pay the Franchise Fee, which is in addition to the Development Fee, when you sign the Franchise Agreement for each Restaurant. You must sign the Franchise Agreement within 120 days after we accept a site for the Restaurant and before opening the Restaurant.
Incentive Programs. We are currently offering a "Platinum Incentive Plan" to celebrate the 70th anniversary of our brand. Qualified franchisees must sign a Development Agreement with a 5-year term and include a minimum of 5 Restaurants, with at least 1 Restaurant opened each year from the date of the Development Agreement. Simultaneously with your signing of the Development Agreement, you will sign a Platinum Incentive Program Addendum to the Development Agreement in the form attached as Exhibit S.
Source: Item 5 — INITIAL FEES (FDD pages 17–19)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, the Development Fee is indeed in addition to the Initial Franchise Fee. The Development Fee is $10,000 per restaurant, payable when signing the Development Agreement. The Initial Franchise Fee is $20,000 for each restaurant and is due when signing the Franchise Agreement. Therefore, a prospective franchisee should anticipate paying both fees.
However, Churchs Chicken offers an incentive program called the "Platinum Incentive Plan" to celebrate the 70th anniversary of their brand. Under this plan, qualified franchisees who commit to developing a minimum of 5 restaurants within a 5-year term may be eligible for a reduced Initial Franchise Fee of $0. This incentive is available to existing franchisees in good standing who sign a Development Agreement and a Platinum Incentive Program Addendum.
Additionally, Churchs Chicken provides a reduced Initial Franchise Fee of $10,000 for U.S. military veterans and first responders for their first restaurant. This reduced fee does not apply to restaurants purchased in a transfer. If the restaurant is owned for less than 2 years, the franchisee must pay the full Initial Franchise Fee of $20,000. It is important to note that Churchs Chicken reserves the right to extend, change, or discontinue this program at any time. Therefore, prospective franchisees should confirm the current terms and conditions of the program before committing to a franchise agreement.