Does the Churchs Chicken franchisee acknowledge that the agreement involves significant business risks?
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 the 2025 Churchs Chicken Franchise Disclosure Document, the franchisee acknowledges that the franchise agreement involves significant business risks. The franchisee represents, acknowledges, and warrants to Cajun Global LLC that the agreement involves significant legal and business rights and risks. Churchs Chicken does not guarantee the franchisee's success.
Furthermore, the franchisee confirms they have thoroughly read the agreement, conducted an independent investigation of the business, and sought advice from legal counsel or other advisors. The franchisee also recognizes that the nature of the Churchs Chicken business may change over time and has had ample opportunity to investigate representations made by Churchs Chicken and consult with current and former franchisees.
This acknowledgment highlights the importance of due diligence for potential franchisees. The success of a Churchs Chicken franchise is speculative and heavily dependent on the franchisee's personal commitment, capabilities, and direct involvement in the day-to-day management of the business. This is a standard clause in most franchise agreements, emphasizing that the franchisor cannot guarantee profitability and that the franchisee bears the ultimate responsibility for the success of their individual location.