For a Churchs Chicken franchise, is there a cross-guarantee required if the Franchisee holds interest in other restaurants franchised by Cajun or its affiliates, and can this requirement be waived?

According to Churchs Chicken's 2025 Franchise Disclosure Document, if a franchisee, any guarantor, or any parent, subsidiary, or affiliate of the franchisee holds any interest in other restaurants franchised by Cajun or its affiliates, a cross-guarantee is required. This means that the party owning the interest must execute a cross-guarantee to Cajun and its affiliates, ensuring the payment of all obligations for all such restaurants. This requirement applies concurrently with the signing of the Franchise Agreement.

However, Churchs Chicken, under Cajun, has the discretion to waive this cross-guarantee requirement. The waiver must be in writing and is at the sole discretion of Cajun. This provides some flexibility, but franchisees should not assume a waiver will be granted.

In practical terms, if a prospective Churchs Chicken franchisee already has ownership interests in other franchise restaurants within the Cajun family, they should be prepared to provide a cross-guarantee. This guarantee would make them responsible for the financial obligations of those other restaurants as well as their new Churchs Chicken franchise. Franchisees should discuss this requirement with Churchs Chicken and seek legal counsel to fully understand the implications before signing the Franchise Agreement.