What are the exceptions to the limited exclusivity granted to a Churchs Chicken franchisee regarding Church's Restaurants located in the Protected Area?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Church's Restaurants located in the Protected Area (a) that are under construction or open for business as of the date of this Agreement or (b) for which a Church's Franchise Agreement has been executed are excluded from the limited exclusivity granted to Franchisee.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, a franchisee's limited exclusivity within their Protected Area is subject to certain exceptions. Specifically, this limited exclusivity does not apply to Churchs Restaurants that are already under construction or open for business as of the date of the Franchise Agreement. Additionally, the limited exclusivity does not extend to Churchs Restaurants for which a Franchise Agreement has already been executed.
These exceptions mean that a new Churchs Chicken franchisee may find existing or soon-to-be-opened Churchs Restaurants within their Protected Area. These pre-existing or pre-planned locations are not subject to the exclusivity granted to the new franchisee. This could impact the franchisee's potential customer base and revenue projections, as these other locations will be direct competitors.
It is important for prospective Churchs Chicken franchisees to carefully review Schedule 1 of the Franchise Agreement, which defines the Protected Area, and to investigate whether any Churchs Restaurants already exist or are planned within that area. Understanding these exceptions is crucial for assessing the potential market and competition before investing in a Churchs Chicken franchise.