Are domestic Churchs Chicken franchisees required to contribute to the advertising fund?

According to Churchs Chicken's 2025 Franchise Disclosure Document, domestic franchisees are required to participate and contribute to the advertising fund. The franchise agreements for all restaurants owned by the Parent, the Company, domestic franchisees, and certain international franchisees, including all franchisees in Puerto Rico, mandate contributions to the Church's Chicken Advertising Fund.

Specifically, franchisees must contribute 5% of their restaurant's gross sales to the Ad Fund each week. However, Churchs Chicken may require a minimum contribution of $25,000 per year. The FDD stipulates that all franchisees contribute to the Ad Fund on the same basis, although there are exceptions for older franchise agreements with different contribution rates and captive locations like food courts, which may have negotiated lower rates.

Churchs Chicken administers the Ad Fund and has the right to direct all spending. While the Ad Fund is not audited annually, Churchs Chicken prepares an annual statement of monies collected and costs incurred, which is available to franchisees upon written request. In 2024, the Ad Fund's expenditures were allocated as follows: 16% on production, 56% on media placement, 6% on point-of-purchase items, 2% on research and development, 1% on public relations and promotions, 4% on digital technology, and 15% on administration and strategic initiatives.