What is the Development Fee for each Churchs Chicken restaurant to be developed under a Development Agreement?
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. The Restaurants developed under that Development Agreement will receive the reduced Development Fee, Initial Franchise Fee,
Source: Item 5 — INITIAL FEES (FDD pages 17–19)
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. The standard Development Fee is $10,000 per restaurant, payable upon signing the Development Agreement. However, during fiscal year 2024, these fees varied from $5,000 to $10,000 per restaurant.
For franchisees who qualify for the Platinum Incentive Plan, the Development Fee remains at $10,000 per restaurant. To qualify, franchisees must commit to a 5-year Development Agreement that includes a minimum of 5 restaurants, with at least one restaurant opening each year.
It is important to note that the Development Fee is separate from the Initial Franchise Fee, which is $20,000 per restaurant. The Franchise Fee is paid when the Franchise Agreement is signed for each restaurant, within 120 days of site acceptance and before the restaurant opens. U.S. Military Veterans and First Responders may be eligible for a reduced Franchise Fee of $10,000 for their first restaurant.