What is the estimated low-end cost for utility deposits when opening a Churchs Chicken franchise?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Amount | To Whom | ||||
|---|---|---|---|---|---|
| Type of | Method Of | ||||
| Expenditure | Low | High | Payment | When Due | Payment Is To Be Made1 |
| Development Fee2 | $10,000 | $10,000 | Lump sum | At signing of Development Agreement | Cajun |
| Initial Franchise Fee2 | $20,000 | $20,000 | Lump sum | At signing of Franchise Agreement | Cajun |
| Grand Opening Marketing Funds3 | $15,500 | $25,000 | Lump sum | At signing of Franchise Agreement | Cajun |
| Real Estate | variable | variable | Lump sum or | As arranged | Lessors/ vendors |
| (purchase or lease)4 | Monthly | ||||
| Site Work5 | $200,000 | $425,000 | Lump sum | As ordered | Vendors |
| Building and | $475,000 | $600,000 | Lump sum | As ordered | Vendors |
| Improvements6 | |||||
| Equipment and | $320,000 | $350,000 | Lump sum | As ordered | Vendors |
| Signs7 | |||||
| Fees, Misc., Architectural and Engineering Services, Deposits8 | $45,000 | $125,000 | Lump sum | As ordered | Vendors, consultants, municipalities |
| Initial Training9 | $0 | $23,000 | As incurred | As incurred | Employees/ vendors |
| Opening Supplies10 | $6,350 | $12,700 | As arranged | As incurred | Suppliers |
| Insurance11 | $7,500 | $10,000 | As arranged | As ordered | Insurance company/ broker |
| Utility Deposits12 | $5,000 | $15,000 | Lump sum | Per lease or utility company’s requirements | Utility companies/ lessors |
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 low-end cost for utility deposits is $5,000. The high-end cost is estimated to be $15,000. These deposits are typically paid in a lump sum, with the due date determined by the lease agreement or the utility company's requirements. Payment is made directly to the utility companies or lessors.
Utility deposits are a common requirement when establishing a new business, including a Churchs Chicken franchise. These deposits serve as a security measure for utility companies to ensure payment for services rendered. The specific amount can fluctuate based on factors such as the restaurant's location, the practices of the lessor, and the franchisee's creditworthiness.
Prospective franchisees should budget for this expense and be prepared to provide the deposit as required by the utility companies or lessors. It's advisable to inquire about the specific deposit requirements during the lease negotiation process to avoid any surprises and to accurately estimate the initial investment needed to open a Churchs Chicken franchise.