In the event of termination or expiration of the Churchs Chicken franchise agreement, what evidence must the franchisee furnish to Cajun, and within what timeframe?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
(3) Developer promptly shall return to Cajun the Manual, any copies of the Manual and all other materials and information furnished by Cajun or its affiliates, except materials and information furnished with respect to a Franchised Restaurant which is open and operating pursuant to an effective franchise agreement.
(e) Franchisee, all individuals who executed this Agreement, and all guarantors of Franchisee's obligations shall have executed a general release and a covenant not to sue, in a form satisfactory to Cajun, of any and all Claims (as defined in Section 16) against Cajun and its affiliates and their respective past and present officers, directors, shareholders, agents and employees, in their corporate and individual capacities, including, without limitation, Claims arising under any law or regulation, and Claims arising out of, or relating to, this Agreement, any other agreements between Franchisee and Cajun or its affiliates and Franchisee's operation of the Franchised Restaurant, other Church's Restaurants operated by Franchisee and all other restaurants operated by Franchisee that are franchised by Cajun or its affiliates.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, upon termination or expiration of the franchise agreement, the franchisee must fulfill several obligations. The franchisee is required to return the Manual, any copies of the Manual, and all other materials and information furnished by Cajun or its affiliates. This excludes materials and information furnished with respect to a franchised restaurant that is open and operating under an effective franchise agreement.
Additionally, the franchisee, all individuals who executed the agreement, and all guarantors of the franchisee's obligations must execute a general release and a covenant not to sue. This release must be in a form satisfactory to Cajun, covering any and all claims against Cajun and its affiliates, including their officers, directors, shareholders, agents, and employees. These claims include those arising under any law or regulation, or relating to the franchise agreement, other agreements between the franchisee and Cajun, and the franchisee's operation of the franchised restaurant.
The FDD does not specify a particular timeframe for furnishing this evidence to Cajun. However, it indicates that these obligations arise "upon termination or expiration of this Agreement." A prospective franchisee should clarify the exact deadlines for fulfilling these post-termination obligations with Churchs Chicken during their due diligence.