For a Churchs Chicken franchise operating as a co-branded restaurant, what is the purpose of the amendment between Cajun and the franchisee?

RECITALS:

• A. Cajun and Franchisee have entered into the Franchise Agreement, pursuant to which Franchisee is authorized to operate the Franchised Restaurant at the Franchised Location. Since the Franchised Restaurant will be operated in connection with the operation of a gasoline station, truck stop and/or convenience store, certain provisions of the Franchise Agreement will not be applicable to the Franchised Restaurant and its operation, and certain other provisions need to be added to the Franchise Agreement to govern the Franchised Restaurant and its operation.
• B. In light of the other business(es) operated in proximity to the Franchised Restaurant, Cajun and Franchisee are entering into this Amendment to modify the Franchise Agreement as set forth in this Amendment.

NOW THEREFORE, in consideration of the mutual covenants, agreements and obligations set forth below, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree to amend the Franchise Agreement as follows:

• 1. The following new Subsection 1.A.(3) is added to the end of Section 1.A.:
  • (3) The Franchised Restaurant is part of a larger site ("Facility") at the street address specified in attached Appendix A. In addition to the Franchised Restaurant, Franchisee and/or its affiliates operate those other businesses at the Facility identified in Appendix A.
• 1. If Franchisee operates a gasoline station at the Facility pursuant to a contract with a third party, as identified in Appendix A ("Supplier"), for the supply and subsequent sale of petroleum products ("Supply Contract"), the following is added immediately prior to the period at end of the first sentence of Section 2.A. of the Franchise Agreement:
  • , or upon the expiration or earlier termination of the Supply Contract if Franchisee fails to enter into a new contract for the supply and subsequent sale of petroleum products with Supplier or another third party.
• 1. The following sentence is added to the end of Section 3.D.:

Gross Sales shall also not include: (1) any revenue derived from any business operated by Franchisee at the Facility other than the Franchised Restaurant, or (2) beverages sold at the Facility in containers not bearing the Proprietary Marks (beverages sold in containers bearing the Proprietary Marks shall be included in Gross Sales).

1. The following sentence is added to the end of Section 3.F.(2):

Franchisee must maintain a separate bank account for the Restaurant from that of any gasoline station, truck stop and/or convenience store that Franchisee owns or operates on or about the Franchised Location. All Gross Sales from the Restaurant must be deposited into this bank account. The revenues from the gasoline station, truck stop and/or convenience store shall not be co-mingled with the Gross Revenues from the Restaurant.

5.

Source: Item 22 — CONTRACTS (FDD pages 67–68)