Does the Churchs Chicken franchisee acknowledge that the agreement involves significant business rights?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee represents, acknowledges and warrants to Cajun (and Franchisee agrees that these representations, acknowledgments and warranties shall survive termination of this Agreement) that:
A. This Agreement involves significant legal and business rights and risks. Cajun does not guarantee Franchisee's success. Franchisee has read this Agreement in its entirety, conducted an independent investigation of the business contemplated by this Agreement, has been thoroughly advised with regard to the terms and conditions of this Agreement by legal counsel or other advisors of Franchisee's choosing, recognizes that the nature of the business conducted by Church's Restaurants may change over time, has had ample opportunity to investigate all representations made by or on behalf of Cajun, and has had ample opportunity to consult with current and former franchisees of Cajun. The prospect for success of the business undertaken by Franchisee is speculative and depends to a material extent upon Franchisee's personal commitment, capability and direct involvement in the day-to-day management of the business.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, the franchisee acknowledges and warrants to Cajun that the franchise agreement involves significant legal and business rights and risks. The franchisee also acknowledges that Churchs Chicken does not guarantee the franchisee's success.
Furthermore, the franchisee represents that they have thoroughly read the agreement, conducted an independent investigation of the business, and have been advised by legal counsel or other advisors. They also recognize that the nature of the Churchs Chicken business may change over time. The franchisee also confirms they have had ample opportunity to investigate all representations made by or on behalf of Cajun and to consult with current and former franchisees.
This acknowledgement highlights the importance of due diligence for prospective franchisees. It emphasizes that success is not guaranteed and depends heavily on the franchisee's personal commitment, capability, and direct involvement in the day-to-day management of the business. It is typical in franchising for the franchisee to bear the ultimate responsibility for their business's success, making this acknowledgement a standard inclusion.