For a Churchs Chicken franchise operating near other businesses, what is the purpose of the Amendment to the Franchise Agreement?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
nded Business. If the Facility has only one drive thru then it will be dedicated to the Franchised Restaurant. No products of the Co-Branded Business may be delivered to customers through the drive-thru window dedicated to the Franchised Business.
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- The last sentence of Section 10.I. is deleted and replaced with the following:
Cajun has the right to approve (to be granted or withheld in Cajun's sole discretion) all Church's Texas Chicken signage at the Facility. Unless otherwise approved by Cajun (in its sole discretion) all Church's Texas Chicken signage shall be of a size at least equal to that of the signage for any other business at the Facility. Franchisee shall not display any sign, logo or advertising media to which Cajun objects as being inconsistent with the image of the Church's Texas Chicken brand or the System.
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- The following new Subsection (8) is added to Section 12.B.:
- (8) If alcoholic beverages are sold at the Facility, Franchisee shall maintain Dram Shop coverage and Liquor Liability coverage for bodily injury and property damage with policy limits of not less than $1,000,000.
- The following sentence is added after the second sentence of the first paragraph of Section 15.B.:
Cajun may refuse to approve a proposed Transfer if Franchisee and its affiliates do not propose to simultaneously transfer (to the same transferee) the same interest in the Co-Branded Business at the Facility that Franchisee proposes to Transfer with respect to this Agreement, the Franchise, the Franchised Restaurant or the Franchised Location.
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- Section 15.H. is deleted.
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- The following sentence
Source: Item 22 — CONTRACTS (FDD pages 67–68)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, the purpose of the Amendment to the Franchise Agreement is to address specific considerations when a Churchs Chicken franchise operates in conjunction with other businesses at the same facility. This is particularly relevant for locations like convenience stores, travel plazas, or co-branded restaurants.
The amendment clarifies several aspects of the franchise agreement to accommodate these situations. For instance, it ensures that the operation of other restaurants not specializing in chicken at the same facility is not automatically considered a diversion of business from the Churchs Chicken restaurant. It also stipulates that sales of Churchs Chicken menu items must be recorded separately from the sales of any co-branded business.
Furthermore, the amendment addresses signage, giving Cajun Global LLC the right to approve all Churchs Chicken signage at the facility and ensuring it is appropriately sized relative to other businesses. It also includes specific insurance requirements, such as maintaining Dram Shop and Liquor Liability coverage with policy limits of not less than $1,000,000 if alcoholic beverages are sold at the facility. These stipulations aim to protect the Churchs Chicken brand and ensure consistent operational standards even when the franchise shares a location with other businesses.