Does the Churchs Chicken FDD table relate to any exceptions?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
are not required to consult with the Marketing EAC.
The Ad Fund:
All franchisees must contribute to our Ad Fund. You must contribute to the Ad Fund each week 5% of your Restaurant's Gross Sales. However, we may require you to contribute a minimum of $25,000 per year to the Ad Fund. If we create an Ad Co-op and require your participation, you must still contribute 5% of your Restaurant's weekly Gross Sales to the Ad Fund. All franchisees contribute to the Ad Fund on the same basis (except that some older Franchise Agreements may provide for different contribution rates and certain franchisees in captive locations (e.g.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 35–43)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, the tables provided do not specifically relate to exceptions, but one table does mention some older franchise agreements may provide for different contribution rates. The Operations Manual Table of Contents outlines the policies and procedures for running a Churchs Chicken franchise. The table of contents covers a wide range of topics, from restaurant operations and guest service to safety and security. This manual serves as a guide for franchisees to ensure consistent quality and service across all locations.
Another table outlines the summary of significant accounting policies, which includes restricted cash, accounts receivable, net inventory, and advertising funds. This section explains how Churchs Chicken handles its finances and ensures transparency in its accounting practices. For franchisees, understanding these policies is crucial for managing their own finances and complying with the franchisor's requirements.
Another section discusses the advertising program, which is funded by franchisee contributions. While all franchisees generally contribute 5% of their gross sales, some older agreements or those in captive locations may have different rates. This fund is used for advertising, marketing, and public relations programs to support the Churchs Chicken brand. Franchisees benefit from these programs through increased brand awareness and customer traffic.