What is the estimated range of costs for utility deposits for a Churchs Chicken franchise, and to whom are these payments made?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method Of Payment | When Due | To Whom | ||
|---|---|---|---|---|---|---|
| Low | High | 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 (purchase or | variable | variable | Lump sum | As arranged | Lessors/ vendors | |
| lease)4 | or Monthly | |||||
| Site Work5 | $30,075 | $152,000 | Lump sum | As ordered | Vendors | |
| Building and | $194,641 | $510,000 | Lump sum | As ordered | Vendors | |
| Improvements6 | ||||||
| Equipment and Signs7 | $290,000 | $375,000 | Lump sum | As ordered | Vendors | |
| Fees, Misc., Architectural and Engineering Services, Deposits8 | $50,000 | $100,000 | 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 | $10,000 | $15,000 | Lump sum | Per lease or utility company’s requirements | Utility companies/ lessors | |
| Business Licenses13 | $300 | $600 | Lump sum | Before opening | Government agencies | |
| Additional Funds – 3 | $10,000 | $20,000 | As arranged | As needed | Employees/ | |
| Months14 | suppliers | |||||
| Total Investment15 | $644,366 | $1,273,300 | (excluding Real Estate) |
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 cost for utility deposits ranges from $5,000 to $15,000. These deposits are typically paid in a lump sum.
The timing of these payments depends on the requirements of either the lease agreement or the utility companies themselves. This means a prospective Churchs Chicken franchisee needs to be prepared to pay these deposits potentially before opening their doors.
The payments for utility deposits are made directly to the utility companies or lessors. This is a fairly standard practice in franchising, as franchisees are generally responsible for setting up and paying for their own utilities. The specific amount required for utility deposits can vary significantly based on the restaurant's location, the lessor's policies, the franchisee's creditworthiness, and the policies of the utility companies in that area.