Must a Churchs Chicken franchisee execute a general release and covenant not to sue as a condition of renewal?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) Franchisee, all individuals who executed this Agreement, and all guarantors of Franchisee's obligations shall have executed a general release and a covenant not to sue, in a form satisfactory to Cajun, of any and all Claims (as defined in Section 16) against Cajun and its affiliates and their respective past and present officers, directors, shareholders, agents and employees, in their corporate and individual capacities, including, without limitation, Claims arising under any law or regulation, and Claims arising out of, or relating to, this Agreement, any other agreements between Franchisee and Cajun or its affiliates and Franchisee's operation of the Franchised Restaurant, other Church's Restaurants operated by Franchisee and all other restaurants operated by Franchisee that are franchised by Cajun or its affiliates.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to Churchs Chicken's 2025 Franchise Disclosure Document, a franchisee, along with individuals who executed the agreement and all guarantors, may be required to execute a general release and covenant not to sue as a condition of renewal. This release must be in a form satisfactory to Cajun, Churchs Chicken's parent company.
This release covers any and all claims against Cajun, its affiliates, and their respective officers, directors, shareholders, agents, and employees. The claims include those arising under any law or regulation and those arising out of or relating to the franchise agreement, other agreements between the franchisee and Cajun, and the franchisee's operation of the franchised restaurant. It also extends to other Churchs Chicken restaurants operated by the franchisee and all other restaurants operated by the franchisee that are franchised by Cajun or its affiliates.
This requirement means that before a Churchs Chicken franchise can be renewed, the franchisee must waive their rights to sue Churchs Chicken and related parties, which could have significant legal and financial implications. It is important for prospective franchisees to fully understand the scope of this release and covenant not to sue, and to seek legal counsel to assess its potential impact on their rights and future business operations.