When is the Development Fee for a Churchs Chicken restaurant due?
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, the Development Fee is due when the Development Agreement is signed. The Development Fee is $10,000 per restaurant that the franchisee commits to develop under the Development Agreement.
For franchisees participating in the Platinum Incentive Plan, the Development Fee remains $10,000 per restaurant. This fee is also due upon signing the Development Agreement. The Platinum Incentive Plan requires franchisees to commit to developing a minimum of 5 restaurants over a 5-year term, with at least one restaurant opening each year from the date of the Development Agreement.
During fiscal year 2024, the Development Fees ranged from $5,000 to $10,000 per Restaurant. However, the FDD does not specify the conditions under which the fee would be less than $10,000. A prospective franchisee should inquire with Churchs Chicken about the specific criteria that determine the Development Fee amount.