Does the Churchs Chicken FDD include an income statement as part of the financial statements?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Cajun may, in its reasonable discretion, require that Franchisee, at Franchisee's expense, submit audited financial statements prepared by a certified public accounting firm acceptable to Cajun for any fiscal year or any period or periods of a fiscal year.
- **D.
Other Reports and Information.** Franchisee shall submit to Cajun, for review or auditing, such other forms, financial statements, reports, records, operational data, metrics, copies of contracts and agreements, status reports and documents related to litigation and claims, information, and data as Cajun may reasonably designate, in the form and at the times and places reasonably required by Cajun, upon request and as specified from time-to-time in the Manual or otherwise in writing.
If Franchisee has
combined or consolidated financial information relating to its franchised Church's Restaurants with that of any other business or businesses, including a business licensed by Cajun, Franchisee shall simultaneously submit to Cajun, for review or auditing, the forms, reports, records and financial statements (including, but not limited to, the Quarterly Statements and Annual Financial Statements) which contain the detailed financial information relating to its franchised Church's Restaurants, separate and apart from the financial information of such other businesses. Franchisee shall authorize all of its suppliers and distributors to release to Cajun, upon Cajun's request, any and all of their books, records, accounts or other information relating to goods, products and supplies sold to Franchisee and/or the Franchised Restaurant. Cajun may engage a third party to analyze any financial statements, reports, or other data from or about Franchisee.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 67)
What This Means (2025 FDD)
Based on the 2025 Churchs Chicken Franchise Disclosure Document, the provided excerpts include references to consolidated financial statements and notes. Specifically, the notes discuss accounting policies, restricted cash, accounts receivable, inventory, and advertising funds. The excerpts mention that Cajun Global LLC requires franchisees to submit financial statements, which Cajun may review or audit. If a franchisee combines financial information from their Churchs Chicken restaurants with other businesses, they must provide separate detailed financial information for the franchised locations.
However, the excerpts do not explicitly state whether a full income statement is included as part of the financial statements. The notes to the consolidated financial statements are mentioned, and these notes often accompany a full set of financial statements, which would typically include a balance sheet, income statement, and statement of cash flows. The excerpts detail how accounts receivable are managed and how advertising funds are handled, suggesting a level of financial detail is available for review.
While the excerpts confirm that franchisees must provide financial information to Churchs Chicken, the specific components of those financial statements are not fully detailed. A prospective franchisee should confirm with Churchs Chicken exactly which financial statements are included in Item 21 of the FDD, and what specific financial information franchisees are required to submit for review or auditing.