What are all the fees Churchs Chicken franchisees might pay, as detailed across Item 5 and Item 6?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- A. Initial Franchise Fee. Simultaneously with Franchisee's execution of this Agreement, Franchisee shall pay to Cajun an initial franchise fee ("Initial Franchise Fee") in the amount specified in Schedule 1. The Initial Franchise Fee shall be in addition to any development fees paid by Franchisee to Cajun pursuant to a Church's Texas Chicken Development Agreement. Franchisee acknowledges and agrees that the Initial Franchise Fee is fully earned by Cajun when paid and is not refundable.
- B. Royalty Fee. In addition to all other amounts to be paid by Franchisee to Cajun, Franchisee shall pay to Cajun a nonrefundable and continuing weekly royalty fee (the "Royalty Fee") in an amount equal to 5% of the Gross Sales (as defined below) of the Franchised Restaurant for the preceding week for the right to use the System and the Proprietary Marks at the Franchised Location. If any taxes, fees or assessments are imposed on Cajun by reason of its acting as franchisor or licensing the Proprietary Marks under this Agreement, Franchisee shall reimburse Cajun the amount of those taxes, fees or assessments within 30 days after receipt of an invoice from Cajun.
The Supply Chain Department passes its costs and overhead to the System through surcharges on certain products, as detailed in Item 6. Currently, these surcharges are: $1.22 per case of flour (breading), $3.57 per case of regular chicken boxes, $3.57 per case of family chicken boxes, $1.10 per case of frying oil, and $4.71 per case of biscuit mix.
You must participate in a guest feedback/hotline program operated by ServiceCheck, Inc. You must also participate in an interactive voice response customer survey program, known as "Medallia / SMT," operated by Service Management Group, Inc. The costs associated with each of these programs are disclosed in Item 6.
When you sign the Franchise Agreement, you will pay $15,500 to us for Grand Opening Funds, to be used for the purpose of conducting a Grand Opening Advertising Campaign ("GO Campaign") beginning no earlier than the date the Restaurant opens and ending no later than 90 days after the opening of the Restaurant.
Depending on these factors, we anticipate that the audit costs could range from $1,000 to $5,000 for one Restaurant.
You must participate in our electronic funds transfer program authorizing us to use a pre-authorized bank draft system.
If you request our approval and relocate your Restaurant within 6 months of a Restaurant closure, we will not charge you a fee for evaluating and approving your relocation request. If you do not open the Restaurant within this 6-month period, we can charge you for all reasonable expenses that we incur in considering the relocation request, and we may condition our approval on the payment of an agreed minimum royalty to us during the period in which the Restaurant is not in operation.
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, franchisees can expect to pay several fees. There is an initial franchise fee, the amount of which is specified in Schedule 1 of the franchise agreement. Franchisees also pay a continuing weekly royalty fee equal to 5% of the franchised restaurant's gross sales. If Cajun Global LLC, the franchisor, incurs taxes, fees, or assessments due to its role as franchisor or in licensing the proprietary marks, the franchisee must reimburse Cajun within 30 days of receiving an invoice. Franchisees also pay grand opening funds of $15,500 to Churchs Chicken, to be used for a Grand Opening Advertising Campaign.
In addition to these fees, franchisees will encounter other costs related to the supply chain. Surcharges are applied to certain products, which are then paid to the Supply Chain Department. These surcharges include $1.22 per case of flour (breading), $3.57 per case of regular chicken boxes, $3.57 per case of family chicken boxes, $1.10 per case of frying oil, and $4.71 per case of biscuit mix. Franchisees also bear the costs associated with participating in a guest feedback/hotline program operated by ServiceCheck, Inc., and an interactive voice response customer survey program, known as "Medallia / SMT," operated by Service Management Group, Inc.
Finally, Churchs Chicken franchisees may be subject to audit costs. The FDD indicates that these costs can vary widely, potentially ranging from $1,000 to $5,000 for one restaurant, depending on factors such as the amount of any understatement of fees, the length of time the fees were understated, and the franchisee's cooperation with the auditor. Franchisees must also participate in an electronic funds transfer program to pay royalties and other fees. If a franchisee requests Churchs Chicken's approval to relocate their restaurant and does not open the restaurant within 6 months of closure, Churchs Chicken can charge the franchisee for all reasonable expenses incurred in considering the relocation request.