What is the 'Facility' as it relates to a Churchs Chicken franchise?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
withstanding the foregoing and subject to Section 17.A, if all other businesses at the Facility are temporarily not operating, then Franchisee will not be required to operate the Franchised Restaurant during such temporary period.
- The last sentence of Section 10.I. is deleted and replaced with the following:
Cajun has the right to approve (to be granted or withheld in Cajun's sole discretion) all Church's Texas Chicken signage at the Facility. Unless otherwise approved by Cajun (in its sole discretion) all Church's Texas Chicken signage shall be of a size at least equal to that of the signage for any other business at the Facility. Franchisee shall not display any sign, logo or advertising media to which Cajun objects as being inconsistent with the image of Church's Texas Chicken or the System.
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- The following new Subsection (8) is added to Section 12.B.:
- (8) If alcoholic beverages are sold at the Facility, Franchisee shall maintain Dram Shop coverage and Liquor Liability coverage for bodily injury and property damage with policy limits of not less than $1,000,000.
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- Section 13.A.1.(d) is deleted.
- The following sentence is added after the second sentence of the first paragraph of Section 15.B.:
Cajun may refuse to approve a proposed Transfer if Franchisee and its affiliates do not propose to simultaneously transfer (to the same transferee) the same interest in the other business(es) at the Facility that Franchisee proposes to Transfer with respect to this Agreement, the Franchise, the Franchised Restaurant or the Franchised Location.
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- Section 15.H. is deleted.
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- The following sentence is added to the end of Section 17.D.(2)(a):
Notwithstanding the foregoing, the operation by Franchisee of other restaurants at or from the Facility that do not specialize in the sale of chicken shall not, in and of itself, be deemed to constitute a diversion of business or customers from the Franchised Restaurant to a competitor.
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- The following new Subsection (19) is added to Section 18.A.:
- (19) Franchisee fails to record separately the sales of Church's Texas Chicken menu items and promotional items approved for sale in Church's Texas Chicken Restaurants at the Franchised Restaurant from the sales of any other business operated by Franchisee at the Facility as set forth in Section 10.C.(1).
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Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, the 'Facility' refers to the physical location where a Churchs Chicken franchise operates, especially in the context of co-branded businesses. Several clauses in the franchise agreement address scenarios where a Churchs Chicken restaurant shares a location with another business.
Specifically, Churchs Chicken retains the right to approve all signage at the Facility, ensuring that Churchs Chicken signage is at least as prominent as that of any other business operating there. If the Facility sells alcoholic beverages, the franchisee must maintain Dram Shop and Liquor Liability coverage with policy limits of at least $1,000,000.
Furthermore, if a franchisee intends to transfer their interest in the Churchs Chicken franchise, Churchs Chicken can block the transfer unless the franchisee also transfers their interest in any co-branded business at the Facility to the same party. The operation of other restaurants at the Facility that do not specialize in chicken will not automatically be considered a diversion of business from the Churchs Chicken franchise. The franchisee must also separately record sales of Church's Texas Chicken menu items from sales of any co-branded business operated at the Facility.