What is the 'Due Date' for Royalty Fee and advertising contributions for Churchs Chicken franchisees?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Franchisee shall participate in an electronic funds transfer program established by Cajun that authorizes Cajun to utilize a pre-authorized bank draft system.
The Royalty Fee and advertising contributions calculated on the basis of Gross Sales and other amounts owed under this Agreement must be received by Cajun or credited to Cajun's account by pre-authorized bank debit before 5:00 p.m. on the 5th business day after the end of each fiscal week ("Due Date").
On each Due Date, Cajun will transfer from the Franchised Restaurant's commercial bank operating account ("Account") the amount reported to Cajun in Franchisee's remittance report or determined by Cajun
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, the due date for royalty fees, advertising contributions, and other amounts owed must be received by Cajun Global LLC or credited to their account via pre-authorized bank debit by 5:00 p.m. on the 5th business day after the end of each fiscal week. This 'Due Date' is a critical aspect of the franchise agreement, ensuring timely payments to the franchisor.
Churchs Chicken requires franchisees to participate in an electronic funds transfer program, allowing Cajun Global LLC to utilize a pre-authorized bank draft system. This system ensures that funds are automatically debited from the franchisee's commercial bank operating account on the due date. The amount debited will be the amount reported by the franchisee in their remittance report or as determined by Cajun Global LLC.
Failure to maintain sufficient funds in the designated account constitutes a default of the franchise agreement. This underscores the importance of franchisees managing their cash flow effectively to meet their financial obligations to Churchs Chicken. Franchisees are not entitled to withhold any royalty fees, advertising contributions, or any other monies payable under the agreement, even in cases of alleged non-performance by Cajun Global LLC.