Does the Churchs Chicken franchisee have a renewal option under the renewal term as defined in the Addendum?
Churchs_Chicken Franchise · 2025 FDDAnswer from 2025 FDD Document
- Section 2.A of the Agreement is deleted and replaced with the following: A. Renewal Term. The renewal term of the Franchise granted this Agreement (the "Renewal Term") shall commence and expire on the dates listed on Form A unless this Agreement is terminated at an earlier pursuant to Section 18. Franchisee shall not have a renewal option.
Source: Item 23 — RECEIPT (FDD pages 68–406)
What This Means (2025 FDD)
According to the 2025 Churchs Chicken Franchise Disclosure Document, a franchisee does not have a renewal option under the renewal term as defined in the Renewal Addendum. Specifically, Section 2.A of the Franchise Agreement is replaced, and it states that the franchisee "shall not have a renewal option."
This means that once a franchisee enters a renewal term, they will not have the opportunity to renew the franchise agreement again. This is a significant departure from the standard franchise model, where franchisees often have multiple renewal options, provided they meet certain conditions.
Prospective Churchs Chicken franchisees should carefully consider this aspect, as it limits their long-term control over the business and location. It would be prudent to discuss the reasons behind this policy with Churchs Chicken and understand their long-term plans for the brand and its franchisees.