What is the estimated annual rent range for leased space for a Churchs Chicken restaurant?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
s affecting the local market for commercial property. Based on rent paid for our Company Restaurants during fiscal year 2024, we estimate that the annual rent for leased space will range from $12,000 to $185,000, depending on factors such as the following: whether the Restaurant is located within an existing retail business (e.g., shopping center), is a freestanding building or is an inline or corner unit in a strip center. Please note that, because we are a AAA-rated tenant, our rent may be less than yours. Security deposits should not
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 24–31)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, the estimated annual rent for leased space ranges from $12,000 to $185,000. This estimate is based on the rent paid for company-owned restaurants during the fiscal year 2024. The specific amount depends on factors such as whether the restaurant is located within an existing retail business like a shopping center, is a freestanding building, or is an inline or corner unit in a strip center.
This wide range indicates that location significantly impacts rental costs for a Churchs Chicken franchise. A franchisee can expect to pay less for a space within a shopping center compared to a freestanding building. The FDD also notes that Churchs Chicken, as an AAA-rated tenant, may secure lower rent rates than a new franchisee might obtain.
Prospective franchisees should also consider that security deposits typically do not exceed an average of two months' rent. Given the variability in rent, it is crucial for potential franchisees to conduct thorough market research and negotiate lease terms carefully to manage their initial investment and ongoing operational costs effectively. Understanding these factors is essential for making informed financial decisions when establishing a Churchs Chicken franchise.