For each Churchs Chicken Franchised Restaurant to be developed under the Development Agreement, when is the Initial Franchise Fee payable?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- B. In addition to the Development Fee required by Section 4, Developer shall pay Cajun an initial franchise fee ("Initial Franchise Fee") for each Franchised Restaurant to be developed under this Agreement in the amount set forth in Schedule 2. The Initial Franchise Fee is payable upon execution of the Franchise Agreement for each Franchised Restaurant. Developer acknowledges and agrees that the Initial Franchise Fee is fully earned by Cajun when paid, and it is not refundable.
- D. Cajun may, in its sole discretion, grant Developer one or more extensions to the Development Schedule ("Development Schedule Extension"), provided that Developer shall pay Cajun a fee ("Development Schedule Extension Fee") in an amount not to exceed $5,000 for each Development Schedule Extension of five months duration or less. Cajun reserves the right to deny the granting of any Development Schedule Extension for any reason. If the Development Schedule Extension is an extension to the Opening Date and Developer opens the Franchised Restaurant during that extension period, then the Development Schedule Extension Fee will be credited toward the Initial Franchise Fee for the Franchised
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, the initial franchise fee for each restaurant developed under the Development Agreement is payable upon the execution of the Franchise Agreement for each respective restaurant. This fee is in addition to any development fees already paid.
This means that a prospective Churchs Chicken developer must be prepared to pay the initial franchise fee at the time they sign the individual Franchise Agreement for each location they plan to open. This is a standard practice in franchising, as the initial fee secures the franchisee's rights to operate under the Churchs Chicken brand and utilize their system.
It is important to note that the initial franchise fee is considered fully earned by Churchs Chicken upon payment and is non-refundable. Therefore, developers should carefully consider their plans and financial capabilities before entering into these agreements. Additionally, the FDD mentions a potential Development Schedule Extension Fee of up to $5,000 for extensions of five months or less, which may be credited towards the Initial Franchise Fee under certain conditions.