Following the termination or expiration of a Churchs Chicken Development Agreement, what evidence of compliance with termination obligations must the developer furnish to Cajun, and within what timeframe?

According to Churchs Chicken's 2025 Franchise Disclosure Document, a developer must furnish evidence of compliance with termination obligations to Cajun within 30 days of the termination or expiration date. This evidence must be certified as true, complete, accurate, and correct by the chief executive officer if the developer is a corporation, by a manager if a limited liability company, or by a general partner if a partnership. The evidence must be satisfactory to Cajun and demonstrate compliance with specific obligations outlined in Section 16.A.(1) - (6) of the Development Agreement.

These obligations include ceasing further development of Churchs Chicken restaurants in the Development Area, returning the Manual and confidential information, abiding by non-compete covenants, paying outstanding debts to Cajun, its affiliates, key suppliers, and lenders, and refraining from actions that imply a connection with Churchs Chicken or misuse its proprietary information.

For a prospective Churchs Chicken franchisee, this means that upon termination or expiration of the Development Agreement, strict adherence to these post-termination obligations is crucial. Gathering and preparing the required evidence within the 30-day timeframe is essential to avoid potential disputes or legal actions by Cajun. The certification requirement underscores the importance of accuracy and completeness in the provided documentation.