Does the FDD specify what the dollar amounts associated with Churchs Chicken's trademarks represent?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Advertising and standardization of advertising and promotion is important to the goodwill and public image of the System. Our advertising program is conducted through a national fund ("Ad Fund") which is described below. We control the Ad Fund and administer it to support each designated market area ("DMA"). Under the Franchise Agreement, we must use the Ad Fund for advertising, marketing, and public relations programs and related activities, and (except as stated in the Franchise Agreement) we cannot use the Ad Fund for our general operating expenses.
Under the Franchise Agreement, we may create Regional Advertising Cooperatives ("Ad Co-ops") and require your participation in them.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 35–43)
What This Means (2025 FDD)
Based on the 2025 Churchs Chicken Franchise Disclosure Document, there is no specification regarding what the dollar amounts associated with Churchs Chicken's trademarks represent. The document does mention trademarks in the context of advertising and promotion, emphasizing the importance of standardized advertising to maintain the goodwill and public image of the Churchs Chicken system. The advertising program is managed through a national fund, and Churchs Chicken has the authority to form regional advertising cooperatives. However, the FDD does not provide specific details on the valuation or financial representation of the trademarks themselves. A prospective franchisee should seek clarification from Churchs Chicken regarding any costs associated with the use of their trademarks and how these are accounted for in the franchise agreement.