What documents must a Churchs Chicken franchisee submit to Cajun for a proposed transfer?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
acter, experience and demonstrated or purported ability in developing and operating high quality foodservice operations. Accordingly, neither Franchisee nor any person or entity which directly or indirectly controls Franchisee shall sell, assign, transfer, convey, or give away any interest in Franchisee, this Agreement, the Franchised Restaurant, the assets of the Franchised Restaurant, the Franchised Location or any other assets pertaining to Franchisee's operations under this Agreement (collectively "Transfer") without the prior consent of Cajun.
- (2) Except as otherwise provided in this Agreement, any purported Transfer, by operation of law or otherwise, not having the prior consent of Cajun shall be null and void.
- (3) If Franchisee engages in a Transfer without the prior written consent of Cajun, and Cajun nonetheless accepts the purported transferee as a franchisee, then Franchisee shall pay Cajun for an unauthorized Transfer fee equal to $25,000.
- B. Conditions to Approval of Transfer and Transferee. Franchisee shall advise Cajun in writing of any proposed Transfer, submit (or cause the proposed transferee to submit) a franchise application for the proposed transferee, and submit a copy of all contracts, agreements or proposals, and all other information requested by Cajun relating to the proposed Transfer. If Cajun does not exercise its right of first refusal as described in Section 15.I., the decision as to whether or not to approve a proposed Transfer shall be made by Cajun in its sole discretion and may include numerous factors deemed relevant by Cajun. These factors may include, but will not be limited to, the following:
- (1) The proposed transferee (and if the proposed transferee is other than an individual, such owners of an interest in the transferee as Cajun may request) must demonstrate that it has extensive experience in high quality restaurant operations of a character and complexity similar to the restaurants franchised by Cajun or its affiliates; meets the managerial, operational, experience, quality, character and business standards for a franchisee promulgated by Cajun from time to time; possesses a good character, business reputation and credit rating;
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, a franchisee must advise Cajun in writing of any proposed transfer. The franchisee must submit a franchise application for the proposed transferee, or cause the proposed transferee to do so. Additionally, the franchisee must submit a copy of all contracts, agreements or proposals, and all other information requested by Cajun relating to the proposed transfer.
Cajun's decision to approve a proposed transfer is made in its sole discretion. Cajun may consider numerous factors it deems relevant, including the proposed transferee's experience in high-quality restaurant operations, managerial and operational standards, character, business reputation, credit rating, management culture, and financial resources.
Prior to any public offering or private placement of securities, the franchisee must deliver to Cajun a copy of the offering documents and an opinion from the franchisee's legal counsel that the offering documents properly use the proprietary marks and accurately describe the franchisee's relationship with Cajun and its affiliates. The franchisee is also responsible for paying a non-refundable transfer fee of $10,000 to cover Cajun's review of the transfer application.