For a Churchs Chicken franchise operating at a facility with other businesses, what is the franchisee prohibited from doing with the revenues?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
ther 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).
- 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)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, if a franchisee operates a Churchs Chicken restaurant at a facility that also houses other businesses like a gasoline station, truck stop, or convenience store, they are prohibited from commingling the revenues. The franchisee must maintain a separate bank account for the Churchs Chicken restaurant and deposit all gross sales from the restaurant into this account.
This means that the revenues generated from the gasoline station, truck stop, or convenience store must not be mixed with the gross revenues from the Churchs Chicken restaurant. This requirement ensures that the financial performance of the Churchs Chicken franchise can be accurately tracked and reported separately from any other businesses the franchisee may operate at the same location.
This separation of funds is a common practice in franchising to maintain financial transparency and accountability. It allows Churchs Chicken to accurately assess royalties, marketing contributions, and overall performance of the franchise. It also helps the franchisee to clearly understand the financial health of their Churchs Chicken business and make informed decisions.
Furthermore, the franchisee must use computer hardware and software capable of segregating the sales of the Churchs Chicken restaurant from the sales of any other business at the facility. This ensures that Cajun Global LLC receives the necessary financial information in a format they specify, allowing for accurate monitoring and reporting of the Churchs Chicken franchise's performance.