What is the difference between 'Controllables' and 'Non-controllables' in the context of Churchs Chicken restaurant-level costs?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- E. "Controllables" refers to miscellaneous restaurant-level costs that are affected by or decided by management, such as the cost of maintenance and repair. "Non-controllables" refers to miscellaneous restaurant-level costs where the owner has no decision-making ability regarding the expenditure, such as the cost of local operating permits. Noncontrollables in this table excludes rent.
| Total | High | Median | Low | |
|---|---|---|---|---|
| Non-Controllables | 2.6% | 2.1% | 2.6% | 3.6% |
| Controllables | 13.8% | 11.6% | 13.9% | 18.0% |
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 55–62)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, 'Controllables' and 'Non-controllables' are categories of restaurant-level costs with different management implications. Controllables are miscellaneous costs that the management can influence or decide upon, such as maintenance and repair expenses. Non-controllables, on the other hand, are miscellaneous costs where the owner lacks decision-making authority, such as local operating permits. Rent is specifically excluded from non-controllables in the provided table.
Understanding the distinction between these cost categories is crucial for a prospective Churchs Chicken franchisee. Controllable costs offer opportunities for franchisees to manage expenses and improve profitability through efficient operations and cost-saving measures. For example, a franchisee might negotiate better rates for maintenance services or implement preventative maintenance programs to reduce repair costs.
Non-controllable costs, however, represent fixed expenses that franchisees must account for but cannot directly control. These costs are influenced by external factors and regulatory requirements. The FDD indicates that non-controllables account for 2.6% of costs, with a high of 2.1% and a low of 3.6%.
The FDD provides a table that includes 'Controllables' and 'Non-controllables' as a percentage of sales, along with other key financial metrics such as food cost, labor cost, marketing, and royalty fees. This information can help potential franchisees understand the cost structure of a Churchs Chicken restaurant and assess the potential for profitability. The 'Controllables' are listed as 13.8% of costs, with a high of 11.6% and a low of 18.0%.